Monday, November 23, 2015

Citrix De-invests ByteMobile; Blaming Encryption

Citrix acquired Bytemobile in July 2012 (here) for $435M (see "Citrix Expects $15M Bytemobile Revenues in 4Q12" - here) the then leading vendor of video optimization for mobile networks.
Expectation did not met, and during this year Citrix made several announcements about "Exploring Alternatives" for the product line (see "Citrix: Bytemobile Business Declined by 50%" - here). 

So the final decision has been made. Closing. 

Patrick Lopez, Founder and CEO,{Core Analysis} reports that "Citrix has decided to "de-invest" in the ByteMobile product line that was initially reported for sale. Citrix provided this week an update in an investor's call, on the results of its strategic review that was announced in September.

Executives commented:

"The underlying premises for the acquisition of ByteMobile have now vanished.We acquired the company for its ability to optimize video traffic,but today a significant amount of the video traffic is encrypted and can no longer be optimized. [...] We will transition some of the capabilities in the NetScaler product but for the most part phasing that product line out."The company mentioned that ByteMobile revenue for 2015 were expected around $50m and breaking even. XenServer will also be discontinued (unsurprisingly looking at VMWare and KVM's relative success)". 

Related post from September 2014: "Flash Networks (40%) and Citrix (30%) Lead the Mobile Optimization Market" - here

See "Citrix shuts down ByteMobile" - here.


  1. I worked for a ByteMobile video optimisation competitor, and basically, YouTube is killing the capability for mobile networks to manage the video traffic flowing through their networks by switching on https. So much for their "Do no evil" motto!!

    It should be said though, that many network were already or are planning to drop the ByteMobile PGW platform generally, as it is bulky and expensive and yesterday's technology. The 'new' way of managing services is via intelligent traffic steering to cloud based services.

  2. I am from a Mobile Operator. I am interested in knowing your company's position on video optimization, its "today's" technology and how it is different to ByteMobile. Email me on if you are interested.

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