Good coverage from 451:
- “maintenance contracts account for half [of OpenText’s] revenue, and 75% of revenue is recurring.”
- “EMC ECD is made up of more than 20 acquired product sets, all of which provide support for unstructured data. This technology ranges from records and digital-asset management to e-discovery and beyond. The core platform was in the process of being re-architected over the past few years; it is still a complex and expensive system of record.”
- The $1.6bn deal size is a 2.8x multiple.
- “OpenText has now spent $2.4bn on five purchases in 2016 – both numbers are record highs for the company.”
Source: “OpenText does largest acquisition yet with the $1.6bn purchase of EMC’s Documentum.”
From EMC World:
This is how we set up federation: Build a digital agenda, go to cloud, go mobile and protect yourself. These things snap together like building blocks, like Legos. (Customers) get the speed and agility of a smaller company within a bigger company. To do this is not for the faint of heart, but the philosophy is choice, not to lock you in.
Also, the piece has some figures on R&D and M&A spend, as well as revenue for recent acquisitions.
EMC believes that the third era will be one of mobile devices, cloud computing and big data…. "We don’t want you to build an app in Amazon’s cloud and have to pay Amazon a tax for the rest of its lifecycle."
—EMC World: Pivotal boss Paul Maritz talks up plans for new firm