OpenText Buys CEM Platform from HP Inc.
July 27, 2016
When Hewlett Packard split up its business in 2015, consumer-printer firm HP Inc. was created; that entity got custody of HP’s CEM platform. Now we learn, from an article at TechCrunch, that “OpenText Acquires HP Customer Experience Content Management for $170 Million.” OpenText expects the deal to generate between $85 million and $95 million in its first year alone. Writer Ron Miller describes:
“The package of products sold to OpenText today come from the HP Engage line and includes HP TeamSite, a web content management tool left over from the purchase of Interwoven (which was actually bought by Autonomy before Autonomy was sold to HP), HP MediaBin, a digital asset management solution, HP Qfiniti, a workforce optimization solution for enterprise contact center management, as well as HP Explore, HP Aurasma, and HP Optimost.”
Some suspect HP was eager to unload this division from the time of the company’s split. Even if that is true, OpenText seems poised to make a lot from their investment; Miller cites the blog post of content-management consultant Tony Byrne:
“The most important thing to understand, though, is that as a vendor OpenText is a financial construct in search of a technology rationale. The company follows a ‘roll-up’ strategy: purchasing older tools for their maintenance revenue streams, streams which — while not always large — are almost always very profitable.”
It is true. In contrast to, say, Google’s method of trying nearly every idea conceived within their company and seeing what sticks, OpenText tends to be deliberate and calculated in their decisions. We are curious to see where this investment goes.
Based in Waterloo, Ontario, OpenText offers tools for enterprise information management, business process management, and customer experience management. Launched in 1991, the company now serves over 100,000 customers around the world. They are also hiring in several locations as of this writing.
Cynthia Murrell, July 27, 2016