EMC Documentum divested to OpenText for $1.6bn, 451

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.”

040: Software is awesome – Software Defined Talk

Summary

When you can pay the sprinkler repair guy by using your finger to sign an iPad, things are looking up. Maybe it means we’ll have lots of microservices wrapped around government services, who knows. Also, we cover the strategy of choosing boring technologies, MongoDB, and The EMC Federation.

With Brandon Whichard, Matt Ray, and Coté.

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BONUS LINKS! Not covered in podcast

Recommendations

EMC’s Marching Orders

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.