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OpenText (OTEX) to Secure Serica Energy's Operations in UK
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OpenText’s (OTEX - Free Report) Content Cloud and Extended ECM for Engineering solutions are set to optimize processes of Serica Energy. Serica Energy is among the top 10 oil and gas producing companies in the U.K. The collaboration will aid Serica Energy in ensuring the content security necessary for safe operations in the U.K.
OpenText’s Content Cloud and Extended ECM for Engineering offer a portfolio of comprehensive enterprise content management solutions that enable organizations to streamline, automate and simplify their information lifecycle management.
The Content Cloud covers a range of solutions, including records management, e-signatures and archiving. It also executes the digital conversion of files from various sources like paper and delivers the information in a content management platform for their use in processes and analytics.
The Extended ECM for Engineering can be used to keep projects on track, safeguard intellectual property, create tailored dashboards from information, and access and share documents through the ecosystem.
The two solutions deployed for Serica Energy’s business ecosystem will aid it in simplifying the growing documentation requirements while also complying with health, safety, security and environmental regulations.
OpenText’s top line is greatly contributed by its cloud segment and especially its Content Cloud solution. The Content Cloud solution contributed 40% of the total revenues alone in fiscal 2024.
The cloud segment is growing on the back of strong renewal rates and expansion of consumption. In fiscal 2024, OpenText gained $701 million of new cloud bookings, up 33% year over year. The company has increased the presence of its cloud-based solutions across financial services, pharma, biotech, health care and government.
OpenText also partnered with companies, including Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) , SAP (SAP - Free Report) and Salesforce, to expand its expertise in cloud and artificial intelligence. OTEX’s offerings are available on Alphabet's Google Cloud Marketplace, Azure Marketplace and Microsoft AppSource.
OpenText and Alphabet’s Google Cloud have also collaborated to launch OpenText Core Content as a service on Google Cloud. Moreover, the collaboration between Microsoft and OTEX has given rise to the latter’s solutions that can be easily integrated with Teams, Outlook and Office 365. Additionally, the OpenText Suite for SAP gets fully integrated into SAP S/4HANA, SAP SuccessFactors and SAP CX solutions, bringing advancements to the business processes.
Competitive Challenges
Despite strong partnerships and a solid portfolio, OTEX is facing some near-term headwinds in the form of growing competition in both the cloud and the artificial intelligence space. Although some of its partners are the largest players in the cloud computing space, these companies are competing for a larger market share.
The large companies operating in cloud space, including Alphabet, Microsoft and Amazon, have enormous resources that they can deploy to replicate the products of smaller companies like OpenText. This poses a continuous threat to OTEX.
The persistent macroeconomic uncertainty and inflationary pressure have also kept the enterprise expenditures in check. This poses a threat to OTEX as this persistent situation might reduce the number of contracts received in the medium term.
Conclusion
Although OpenText’s cloud solutions are well received by customers, softened IT spending amid the uncertain macroeconomic environment might deter OpenText from realizing the full potential of its offerings.
Image: Bigstock
OpenText (OTEX) to Secure Serica Energy's Operations in UK
OpenText’s (OTEX - Free Report) Content Cloud and Extended ECM for Engineering solutions are set to optimize processes of Serica Energy. Serica Energy is among the top 10 oil and gas producing companies in the U.K. The collaboration will aid Serica Energy in ensuring the content security necessary for safe operations in the U.K.
OpenText’s Content Cloud and Extended ECM for Engineering offer a portfolio of comprehensive enterprise content management solutions that enable organizations to streamline, automate and simplify their information lifecycle management.
The Content Cloud covers a range of solutions, including records management, e-signatures and archiving. It also executes the digital conversion of files from various sources like paper and delivers the information in a content management platform for their use in processes and analytics.
The Extended ECM for Engineering can be used to keep projects on track, safeguard intellectual property, create tailored dashboards from information, and access and share documents through the ecosystem.
The two solutions deployed for Serica Energy’s business ecosystem will aid it in simplifying the growing documentation requirements while also complying with health, safety, security and environmental regulations.
Open Text Corporation Price and Consensus
Open Text Corporation price-consensus-chart | Open Text Corporation Quote
Rising Cloud Adoption Aids OpenText
OpenText’s top line is greatly contributed by its cloud segment and especially its Content Cloud solution. The Content Cloud solution contributed 40% of the total revenues alone in fiscal 2024.
The cloud segment is growing on the back of strong renewal rates and expansion of consumption. In fiscal 2024, OpenText gained $701 million of new cloud bookings, up 33% year over year. The company has increased the presence of its cloud-based solutions across financial services, pharma, biotech, health care and government.
OpenText also partnered with companies, including Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) , SAP (SAP - Free Report) and Salesforce, to expand its expertise in cloud and artificial intelligence. OTEX’s offerings are available on Alphabet's Google Cloud Marketplace, Azure Marketplace and Microsoft AppSource.
OpenText and Alphabet’s Google Cloud have also collaborated to launch OpenText Core Content as a service on Google Cloud. Moreover, the collaboration between Microsoft and OTEX has given rise to the latter’s solutions that can be easily integrated with Teams, Outlook and Office 365. Additionally, the OpenText Suite for SAP gets fully integrated into SAP S/4HANA, SAP SuccessFactors and SAP CX solutions, bringing advancements to the business processes.
Competitive Challenges
Despite strong partnerships and a solid portfolio, OTEX is facing some near-term headwinds in the form of growing competition in both the cloud and the artificial intelligence space. Although some of its partners are the largest players in the cloud computing space, these companies are competing for a larger market share.
The large companies operating in cloud space, including Alphabet, Microsoft and Amazon, have enormous resources that they can deploy to replicate the products of smaller companies like OpenText. This poses a continuous threat to OTEX.
The persistent macroeconomic uncertainty and inflationary pressure have also kept the enterprise expenditures in check. This poses a threat to OTEX as this persistent situation might reduce the number of contracts received in the medium term.
Conclusion
Although OpenText’s cloud solutions are well received by customers, softened IT spending amid the uncertain macroeconomic environment might deter OpenText from realizing the full potential of its offerings.
OTEX carries a Zacks Rank #3 (Hold) at present. Shares of OTEX have plunged 22.8% year to date. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here