I've been in a similar scenario before, and here were some things we needed to look at before making the decision:
1). How long-term are you looking? Over time, costs like power consumption, Citrix licensing, and server replacements become significant factors in a decision.
2). How is your IT team structured currently? Depending on the size of your organization & team, either direction could result in a change (such as another server admin at the expense of two desktop techs).
3). Do you have any 'speed bump' users? These are the ones that carry sway and will stand in the way of any major changes ("we won't be able to play Christmas CDs anymore"). If you do, you'll need to get them on board or out of the way (financials that show the net-positive change in your decision is a great way)
4). Do the executives have any preference/input into the decision?
5). Do you use any resource intensive apps, such as CAD? In some cases, you may need to address these separately from the 95% of other apps used in the firm.
6). There are different DR/BC considerations to take into account from either path.
Those are just some things off the top of my head I'd encourage you think think about with the decision.
In terms of performance, either way can work really well or be a total FUBAR; just depends on the planning and execution.
Best of luck!
