At the OpenText analyst conference on Thursday, June 12, 2014 in Boston, CEO Mark Barrenechea asked the assembled group of industry analysts if Enterprise Information Management (EIM) is the best possible handle for what it is they do. Good question. The breadth of OpenText’s offerings arrayed in solution suites and the depth of their functionality is difficult to categorize. When SVP engineering Muhi Majzoub walked through a truly broad range of innovative upgrades to the OpenText solutions portfolio, drilling down on CEO Barrenechea’s EIM vision, the dimensions of the challenge multiplied.
I had always thought of OpenText as a content management solution provider, particularly strong in its application to Governance, Risk and Compliance, but the company has broadened its base in several directions over the past several years. OpenText has made twenty-five (25) acquisitions since 2000. Just to give three recent examples, the acquisitions of EasyLink and GXS in supply chain / internet commerce and Cordys in application development / BPM workflow extend the reach and appeal of OpeText in enterprise software markets and embrace the Cloud.
Some snapshots of OpenText:
- CEO Mark Barrenechea identified 4 key disruptors in business: changing workforce, digital transformation, new technology, Cloud / mobile synergy
- Barrenechea said he’s not going to buy any more PCs because of mobile, 5G, tablets
- OpenText did 2 billion faxes last year on their business network (EasyLink)
- OpenText CMO Steve Keifer announced OpenText is going from 21 datacenters round the world to a 5-zone regional data center strategy, rationalizing their acquired assets
- Keifer announced OpenText would be offering content management and analytics in the Cloud
- OpenText Cloud revenue, largely from GXS and EasyLink, is now at nearly 30 percent
- Cloud revenue upside will be significant with Cordys and the coming PaaS and IaaS offerings featuring multitenant digital suites
- OpenText Professional Services SVP Scott Cravotta cited Nestle’s $100B turnover through its B2B networks
- OpenText VP Alliances Patricia Nagle and Tom Roberts SAP VP 3rd Party Solutions discussed the 8-year partnership and how these two companies work together
- OpenText offers suites of tools in Business Process Management, Enterprise Content Management and Discovery, and Customer Experience Management
- OpenText’s document auto-classification software reaches high 90’s accuracy
OpenText targets fragmented and unstructured enterprise information with the capabilities to structure and manage information through its product suites, complemented by managed and professional services. OpenText defines Enterprise Information Management (EIM) as the technology and practice of maximizing the value of information while minimizing its risks. But OpenText also offers its online trading grid (GXS), Cloud fax and file transfer (EasyLink), AppDev (Cordis) and its evolving portfolio of Analytics solutions, making OpenText diverse and difficult to categorize.
I’ve now come to think of OpenText as offering a broad and deep portfolio of Information Management suites of particular value to highly-regulated industries, such as financial services, food-pharma-chemical, manufacturing and utilities.
OpenText clearly values innovation highly. The net result is an engineering culture with 1,800 engineers worldwide under SVP engineering Muhi Majzoub. OpenText’s 8-year partnership with SAP is most likely rooted in their mutual respect for great engineering, but it extends to SAP marketing and selling the OpenText product line with the same commission rates as SAP’s own solutions. While SAP Ariba and GXS are not in direct competition as Ariba is mostly indirect goods and GXS is hard core supply chain no doubt this relationship will evolve given the market dynamics that may present themselves.
I have to agree with Adam Howatson, OpenText VP Engineering that true innovation is not a peanut butter pop tart. Yes. And it will be interesting to see what innovations OpenText comes up with next.
This blog was originally published on Saugatuck's Lens360 blog on June 13, 2014. Published with permission.