DevOps.com

  • Latest
    • Articles
    • Features
    • Most Read
    • News
    • News Releases
  • Topics
    • AI
    • Continuous Delivery
    • Continuous Testing
    • Cloud
    • Culture
    • DataOps
    • DevSecOps
    • Enterprise DevOps
    • Leadership Suite
    • DevOps Practice
    • ROELBOB
    • DevOps Toolbox
    • IT as Code
  • Videos/Podcasts
    • Techstrong.tv Podcast
    • Techstrong.tv Video Podcast
    • Techstrong.tv - Twitch
    • DevOps Unbound
  • Webinars
    • Upcoming
    • On-Demand Webinars
  • Library
  • Events
    • Upcoming Events
    • On-Demand Events
  • Sponsored Content
  • Related Sites
    • Techstrong Group
    • Container Journal
    • Security Boulevard
    • Techstrong Research
    • DevOps Chat
    • DevOps Dozen
    • DevOps TV
    • Techstrong TV
    • Techstrong.tv Podcast
    • Techstrong.tv Video Podcast
    • Techstrong.tv - Twitch
  • Media Kit
  • About
  • Sponsor
  • AI
  • Cloud
  • Continuous Delivery
  • Continuous Testing
  • DataOps
  • DevSecOps
  • DevOps Onramp
  • Platform Engineering
  • Low-Code/No-Code
  • IT as Code
  • More
    • Application Performance Management/Monitoring
    • Culture
    • Enterprise DevOps
    • ROELBOB

Home » Blogs » OpenText to Create Software Powerhouse – Acquires Micro Focus for $6B

OpenText to Create Software Powerhouse – Acquires Micro Focus for $6B

Avatar photoBy: Mike Vizard on August 27, 2022 Leave a Comment

OpenText this week announced it will acquire Micro Focus for $6 billion. The acquisition is part of an effort to reinvigorate a broad portfolio of information management, application development and testing, integration and cybersecurity platforms by accelerating the rate at which they are transitioned to OpenText’s managed private cloud.

The acquisition is expected to close in the first quarter of 2023, and the combined company expects to reduce costs by an additional $100 million on top of the $300 million Micro Focus previously committed to cutting as part of an ongoing effort to return to profitability and growth.

TechStrong Con 2023Sponsorships Available

OpenText CEO Mark J. Barrenechea told analysts the ultimate goal is to enable organizations to accelerate their digital business transformation initiatives using a set of application programming interface (API)-centric offerings that reside on a private cloud.

Digital transformation represents the largest opportunity in the history of computing, he said, but Barrenechea also acknowledged that a lot of companies are still struggling with making that transition. “There has to be a better way to get digital transformation right,” he said.

The Micro Focus portfolio includes everything from a robotic process automation (RPA) offering, a recently-launched IT service management (ITSM) offering—dubbed Service Automation Management X—along with the Vertica database and LoadRunner testing tools. There is also a slew of cybersecurity platforms that include ArcSight, Fortify, IDOL Zenworks and Sentinel along with legacy COBOL application development tools and even the remnants of Novell.

In effect, OpenText now has one of the broadest software portfolios in the industry after previously acquiring Documentum, Carbonite, Hummingbird and Zix. “The strategy appears to be to simply gather up all the pieces on the chess board,” said Mitch Ashley, principal analyst for Techstrong Research, an arm of Techstrong Group that is also the parent company of DevOps.com.

Despite the disjointed Micro Focus portfolio, OpenText has no intention of selling off any of those offerings, said Barrenechea. Going forward, the strategy is to not only accelerate the transition to the cloud but also expand application license renewal services, he added. OpenText also sees an opportunity to expand the appeal of the Micro Focus portfolio into the small-to-medium business (SMB) market, noted Barrenechea.

All told, it will take six quarters once the deal is closed to align the Micro Focus business model with the one OpenText currently employs, which Barrenechea said should result in growth starting eight quarters after the deal closes.

There’s no doubt that, once the deal closes, IT organizations that rely on Micro Focus will be closely watching the level of ongoing investment in the portfolio for any signs of one platform being deemphasized in favor of another. It’s also probable that many customers will be relieved to see the stewardship of those platforms assumed by a company that is on firmer financial footing.

Regardless of how the OpenText portfolio evolves in 2023, however, one thing that is certain is IT organizations have no shortage of alternatives to consider.

Recent Posts By Mike Vizard
  • Atlassian Extends Automation Framework’s Reach
  • GitLab Strengthens Remote DevOps Management
  • Harness Acquires Propelo to Surface Software Engineering Bottlenecks
Avatar photo More from Mike Vizard
Related Posts
  • OpenText to Create Software Powerhouse – Acquires Micro Focus for $6B
  • OpenText Migrate Achieves AWS Outposts Ready Designation
  • SUSE Preps Independent DevOps Path
    Related Categories
  • Blogs
  • Business of DevOps
  • DevOps in the Cloud
  • Features
  • Infrastructure/Networking
  • IT Administration
  • IT Help Desk
  • ITIL
    Related Topics
  • acquisition
  • digital transformation
  • ITSM
  • micro focus
  • OpenText
Show more
Show less

Filed Under: Blogs, Business of DevOps, DevOps in the Cloud, Features, Infrastructure/Networking, IT Administration, IT Help Desk, ITIL Tagged With: acquisition, digital transformation, ITSM, micro focus, OpenText

« Growing Adoption of Compliance as Code and Policy as Code – Techstrong TV
Hope and Fear »

Techstrong TV – Live

Click full-screen to enable volume control
Watch latest episodes and shows

Upcoming Webinars

Evolution of Transactional Databases
Monday, January 30, 2023 - 3:00 pm EST
Moving Beyond SBOMs to Secure the Software Supply Chain
Tuesday, January 31, 2023 - 11:00 am EST
Achieving Complete Visibility in IT Operations, Analytics, and Security
Wednesday, February 1, 2023 - 11:00 am EST

Sponsored Content

The Google Cloud DevOps Awards: Apply Now!

January 10, 2023 | Brenna Washington

Codenotary Extends Dynamic SBOM Reach to Serverless Computing Platforms

December 9, 2022 | Mike Vizard

Why a Low-Code Platform Should Have Pro-Code Capabilities

March 24, 2021 | Andrew Manby

AWS Well-Architected Framework Elevates Agility

December 17, 2020 | JT Giri

Practical Approaches to Long-Term Cloud-Native Security

December 5, 2019 | Chris Tozzi

Latest from DevOps.com

Stream Big, Think Bigger: Analyze Streaming Data at Scale
January 27, 2023 | Julia Brouillette
What’s Ahead for the Future of Data Streaming?
January 27, 2023 | Danica Fine
The Strategic Product Backlog: Lead, Follow, Watch and Explore
January 26, 2023 | Chad Sands
Atlassian Extends Automation Framework’s Reach
January 26, 2023 | Mike Vizard
Software Supply Chain Security Debt is Increasing: Here’s How To Pay It Off
January 26, 2023 | Bill Doerrfeld

TSTV Podcast

On-Demand Webinars

DevOps.com Webinar ReplaysDevOps.com Webinar Replays

GET THE TOP STORIES OF THE WEEK

Most Read on DevOps.com

What DevOps Needs to Know About ChatGPT
January 24, 2023 | John Willis
Microsoft Outage Outrage: Was it BGP or DNS?
January 25, 2023 | Richi Jennings
Optimizing Cloud Costs for DevOps With AI-Assisted Orchestra...
January 24, 2023 | Marc Hornbeek
Five Great DevOps Job Opportunities
January 23, 2023 | Mike Vizard
Dynatrace Survey Surfaces State of DevOps in the Enterprise
January 24, 2023 | Mike Vizard
  • Home
  • About DevOps.com
  • Meet our Authors
  • Write for DevOps.com
  • Media Kit
  • Sponsor Info
  • Copyright
  • TOS
  • Privacy Policy

Powered by Techstrong Group, Inc.

© 2023 ·Techstrong Group, Inc.All rights reserved.