Welcome, everybody, and good afternoon. Thanks for being here. Excited once again to be hosting our Investor Day in Toronto as part of Enterprise World 2019, which is the world's largest information management conference. It's great seeing so many of you here in person today. And for some of you putting a face to a name for those that I've talked to on the call.
Today's agenda Brian, there we are. Today's agenda includes presentations and question and answer with members of the OpenText executive leadership team, including Mark J. Barronshae, our Vice Chair, CEO and CEO Louis Mizu, our EVP of Engineering and Cloud Services Simon Ted Harrison, our EVP of Worldwide Sales James McGourley, our Senior Vice President, Worldwide Support Amadu Ranganathan, our EVP and CEO.
At the end
of the day's presentation, feel free to remain. We have conference to participate in, various sessions offered. The IR team, including myself, Greg Secord and Steve Tang and Gabby Suchman from the IR team, raise your hands to Gabby so you can see them. They will help you if you want any guidance as far as which sessions you could go to today. As of today's presentation materials, they are available on the Investor Relations section of our website.
Today's event is being recorded with replay made available after the event also accessible from our IR website. I'd like to remind everyone that OpenText is currently in quiet period, ending the release of our Q4 and fiscal 2018 results on August 2. Today's presentation and conference event are focused on product and go to market and are really an opportunity to meet and hear from the OpenText management team. Our prepared remarks and Q and A immediately after the presentations will not cover a discussion of future business, financial projections or long term or target model information. We will also not be taking questions relating to operational metrics or metrics relating to the business matters.
In addition, I'll refer you to our standard Safe Harbor statement, which can be found on Slide 3 of the presentation, and I'll try and use my best radio voice to read the following disclaimer. During today's presentation, we may make statements related to the future aspirations of open text contain forward looking information. While these forward looking statements represent our current judgment, actual results could differ materially from a conclusion or forecast or expectation in any of the forward looking statements made today. We undertake no obligation to update these forward looking statements unless required to do so by law specifically refer you to the risk factors contained in our Forms 10 ks and 10 Q and our other public filings. In addition, our discussion today may include certain historical non GAAP financial measures and reconciliations of any non GAAP financial measures to their most directly comparable GAAP measures may be found within our public filings and the other materials, including today's presentation, which of course are available on our website.
And with that, I'd like to introduce our first presenter, Mark J. Barrenechea, OpenText's Vice Chair, CEO and CTO.
The podium is a little formal for me. So it's okay. I won't stand here. How's everyone doing? Doing well?
Good. Well, thanks for attending Enterprise World. And it's our tradition where we like to invite you to be part of our worldwide customer event, so you can get to understand our strategy, our customers and our go to market better. And it's a long lived tradition that we've had in place and I'm delighted to see the interest in OpenText. So here at the table, we have Simon Ted Harrison.
Ted, can you stand up? So Ted, can you introduce yourself? How long have you been at OpenText?
Simon Harrison, my nickname is Ted in OpenText. I've been with company for 18 years since May. I'm delighted to meet you all for the first time. I run our worldwide sales organization for OpenText.
Thank you, Ted.
I've had the honor of getting to know Ted and working with Ted over my near 8 years at OpenText. And there is no finer leader than Ted here at OpenText. And I have all the incredible confidence and trust in Ted and so does the organization.
Muhi, can you stand up and introduce yourself? Good afternoon. Muhi Mihzub. I run Engineering and Cloud Services. I just finished 6 years at OpenText last month.
Congratulations. Thank you. So Madhu, could you introduce yourself?
Welcome, Adi.
I run our worldwide customer support and annual recurring revenue team. I've been at OpenText 21 years, so around the block a few times. I've met a few of you here last year and the year before.
Nice to see you again. Thanks for coming.
Very good. And again, I've had the privilege and honor to get to know James over my near 8 years and no finer customer oriented centric executive than Mr. McGurley. We've been a lot of wonderful and sometimes difficult customer conversations together in probably every time zone and in every hour of the day. So I'm delighted to have a core part of the leadership team here and they're really the center of the day.
So I hope I'm not the center of the day. I hope they're the center of the day. And again, I'd like to welcome you to Enterprise World. And how many were at the keynote and kickoff this morning? Fantastic.
So then thank you very much, Ted. No, just kidding. So we have near just over 4,000 attendees. We started on Sunday with a great partner event. We growing a partner centric culture is very difficult.
It takes many years. It takes programs. It takes a culture. It takes a set of initiatives. It takes trust.
These are we're focused on the Global 10,000. These are multi year, multi decade long relationships. And when you build partner relationships, you can't pull on the reins and say just kidding, right? These are programs and relationships. And we had a great Sunday.
Partners help for us kind of complete the need. It could be a partner geographically that helps us. It could be a partner that has a relationship that can help us. It's a partner that may have a set of skills that we don't have, integrating into systems A, B or C. It could be a partner that helps us just resell.
And we spent a lot of time emphasizing partners who can help build IP, intellectual property. As I try to highlight in my keynote, we've made incredible progress on attracting the developer. I think one of the things that differentiate, the very good from the great software companies of the world are developer ecosystem. And we're not talking the individual developer writing a small application. We're as I said in my keynote, we highlighted companies like Cerner embedding portions of EIM to go to market in healthcare.
We emphasized companies like ADP, embedding our analytics and AI into their payroll. We emphasize businesses like Canon taking our capture technology and embedding that on going to market around our print services, Duke Energy building compliance apps for the energy market. And again, it's my observation that differentiates the very good from the great software companies is being able to build this partner and developer community. And we've taken a very long term view and I was very pleased with how the turnout on Sunday for 500 Partners. So I hope we invite you to every breakout session.
We invite you to join the customer speakers, 50 countries, 5 days. So it's another great event for us. Some of the customer highlights, Siemens, Monster, Sirius Fraud Office and you saw some of the partner slides. I don't think I'll spend more time on that. I think in partner categories, Ted will spend more time on this.
We certainly are looking for partners that can build IP on top of our platform. We look to partners who can resell. We look for partners who can implement and look to partners who can help drive cloud adoption as well, as we've as cloud is a strong initiative for us. Our top priorities are reemphasizing from the keynote. It's we've made incredible progress.
We wind the clock back to our origins of being a search company, evolving into enterprise content management. I sort of my what gets a lot of things get me very excited. As you well know, I'm a very passionate individual. I'll never be able to contain that passion. But I look at the one slide that talks about 10 years ago, where we were focused as the world was just managing documents and Enterprise Content Management.
And our very successful path of bringing that into an information infused future is very differentiated in the marketplace. And so as we've evolved from search, a search company to enterprise content management to enterprise information management, we're evolving even further into this intelligent and connected enterprise. Top priorities being the Enterprise Cloud, total security, we think security needs to be built in for those who attended Enfuse. We had I can't remember the amount of attendees, about 2,000 attendees in our first security conference. And we think security goes all the way from a well managed platform from document management all the way through the remediation and electronic discovery and now important technologies like auto classification that we've had to be able to look at these big information stores and help decide what GDPR is, what HIPAA is, what is personal information.
GDPR is not a one time event. It is an ongoing platform discussion around how security, privacy and compliance all come together. GDPR is coming to Canada, some in North America. Security, privacy and compliance is coming to every country we do work in. So it's first it has reared its head up the first time really as GDPR.
But this topic of security, compliance and privacy, I think is a good helpful trend for OpenText. Business network remains a top priority for us, content services, the intelligent core platform for innovation. One of the announcements, and I have a wrap up slide here in the deck of our announcements. I have seen the slides on our website already. Yes.
So, we announced this morning that Release 16, EP5, will run anywhere. And we've containerized the entire release. So customers up to this point, we've only run for our private cloud, our managed services, We've only run that in the OpenText cloud. Going forward, we'll still run-in the OpenText cloud, of course. And there are things we can provide that others cannot.
But we're going to embrace the hyperscalers, Google, AWS and Azure, and be able to run Release 16, EP5 and forward and run anywhere in their cloud. And we didn't want to do this until we had learned quite a bit. And as we stand now just over 2,000 managed service customers, we have enough scale, enough learnings, enough expertise to now take just a natural step in our evolution and our roadmap to be able to support, Run Anywhere. And I'll talk a little bit about how we're simplifying that consumption with OpenText Prime Unlimited and OpenText Prime Connect, 2 programs that we announced today. You've seen our leadership team, Madhu, Muhi, Ted and James who are here, if you notice on the top row, this is our Executive Vice President in the business.
Gordon is here at the conference, but I don't think he's here with us today. Paul Dugan, who runs Worldwide Operations KC Communications and Brand Patti, Chief Marketing Officer Leslie, who runs Human Resources for me Prentiss, who runs Professional Services and Dave Jamieson, our CIO. So you probably saw them all there in the audience today. We're a global organization. There's I don't think anything new on this slide.
I think it's from our straight from our investor deck. I'm going to skip over that. What I would emphasize here is, how we're scaling the business. And I talked a little bit about how our software is helping the Global 10,000 scale their businesses, help differentiate their businesses. And we too are learning to scale and to differentiate.
We are completely satisfied in the EIM market space. We're a leader in managed services. With our acquisitions this year, our total customer count where we have a unique contract with a customer is 120,000. We estimate we have close to 100,000,000 end users, 50,000,000 endpoints. I was Amazon talks about in their entire cloud, they run out now over an exabyte of data.
And I kind of privately chuckled and go, well, that's not new to us. In all that we do both on premise and in the cloud, We're well over 1 exabyte. And we're also very proud of our uptime that we offer in our cloud services of 99.99%. That's roughly 7 seconds of rest per week we give our computers. So I mean to translate that into downtime, we're talking about we'll guarantee, you talk about global trusted enterprise quality for companies like Siemens, I highlighted on stage, like Nestle, like BMW, we stand behind 99.99 percent uptime in what we do.
It's amazing infrastructure and cloud that we built. We think at the center of what we're doing, this is a product conference, so I get to speak a little more about product, is I would say that one of our big drivers to unlock the power of integration and continue to unlock that power of integration. And every release gets stronger in doing that. Every release gets more services on top of that. So we abstract away from the engines underneath, if you will.
We've done and bring in and how it integrates into the platform. And at the core is automation, AI, APIs and data management. And we've introduced a new modern core with OT2, which Mui will talk about here in a moment. Of that core, you write about us and model us as a platform company, many of you. I think of us much more as a more than a platform company, I think of us as an enterprise company.
I'm about to get to that application space. On the platform side, it is a new world of content services, as you saw in the presentation this morning from cloud content, records management, lifecycle management, load code, delivery, I'm doing this off the top of my head, auto classification, we electronic discovery, intelligent capture and all these services. We think in a lot of ways this is a new world here. Security is a market we entered with guidance with software. We've learned a lot from guidance.
The market has also moved to where, this is not priority 7 deep buried in a data center administrative job. This is a number one role for the CIO. And I think the CIO, the CISO, I think Heads of Internal Audit, it's an interesting cadre getting at a table talking about new enterprise solutions, again for privacy, security and compliance going forward. Our business network, we made a strategic bet. We had a strategic thesis.
We made an investment around extending our vision into the business network when we purchased EZLINK. And we then extended that vision into GXS. Then extended that vision with Covisint. We did a small acquisition of ANX. This continues to be a market for us where we're evaluating companies for acquisition.
And it's played out to be a strategic part of our vision, that business network, smashing the 4 walls, now 4 machines and strategic endpoints. And embracing the developer more fully. And Mui, thanks to Savne and I thought he did a great job today on a complex topic trying to get it done in 5 minutes in front of thousands of people. Equally important to us is not just our platform and security and business network is, building applications, not just helping customers build applications, helping partners embed applications, but us building our own applications. And Mohi will talk about customer experience management, employee engagement, supplier efficiency, asset utilization and products around engineering and construction, quality management, clinical trials.
These are all kind of the IP based aspects of big data that we're building software around. So this is our vision for the intelligent and connected enterprise. Translating it a little bit, I see ourselves as an enterprise, clearly an enterprise software company. We have platform technologies. We have security technologies, business technologies, embracing the developer in our ecosystem and growing into an applications company through these applications and being not just kind of beneath the glass of the screen, but actually being on the glass of the screen as an application and surrounded by the suite in our cloud.
We look at the market as a 100,000,000,000 dollars strategic opportunity, dollars 100,000,000,000 strategic opportunity. And it kind of follows our evolution down here as a search company. Those who just were focused on ECM, well, they don't exist anymore. There are still white spaces and lots of white spaces for us to fill within ECM. But as we grew into the content experts that brought in CEM and BPM, we've extended our market reach.
Enterprise Information Management brought Business Network and Discovery. And as we think of managed services, IoT, Cloud, SaaS, mid market, $100,000,000,000 I don't have the slide in the deck. I used it at Partner Day. I think one of the important differences of cloud and license And again, our customers are in many of our customers are in regulated industries. And hybrid is our path as far as we can see and we can see a long way and it's a hybrid world.
For the license model, we presented this at Partner Day and I'll speak a little bit about it. And we think of the license model, so it was a 4x multiplier. And when we put it next to cloud, we think it's a 10x multiplier actually, the higher multiplier than the license business. On the license side, you have the creator of the IP. You have those who sell the license, 2nd multiplier.
3rd multiplier is those who support it. The 4th is who implement it. And that's sort of the license multiplier model tried and true over the last tried and true over the last 2 decades. When I look at the cloud model, you have those 4 Xs in there, those who are creating the IP, those who are selling it, those who are implementing, those who are supporting it, but you also get those who are hosting it. You get those who are providing the application management services.
You get those who are doing continuous innovation on that. And there's a whole another set to where we see it as sort of a 10x multiplier in the cloud business. So there is a lot here for us to continue in our purview, including mid market and SaaS assets like Hytale as we execute to our total growth strategy. Which leads me into the next slide, which is we're using the term and it's a long life term for us that total growth for us means we'll continue to have acquisitions center in our model. Organic growth, equally important.
And Ted will walk through sort of our path around our organic model. And we have a strong emphasis on annual recurring revenue. But we are a total growth company. You can debug in Adobe. You can debug a computer associate.
You can debug a sales force. When we debug OpenText, I put us right into total growth. We're going to look to grow via acquisitions.
We're going to look
to grow through our own organic activities.
We're going to look
to grow via customer success, getting to more Global 10 1000s, getting deeper into the Global 10 1000s and extending our reach through partners. So I don't know if this is an industry term. I don't really see it out there, but I consider ourselves a total growth oriented company for someone taking a license and flipping it to a subscription or someone struggling with just plain organic growth. We're a total growth oriented business. If we go back over 6 years, trailing 12 months from end of March, right, And I'm we've grown revenue 114% over that 6 year period.
Annual recurring revenue is 160%, 70% 167%, adjusted operating margin 400 basis points over that period, near doubled. Operating cash flow, 58% increase in license. Cloud,
if we
went back here to 11,000,000 it'd be 0 to near an $800,000,000 business. Customer support to 1,200,000,000 dollars adjusted EPS up almost 100% over the same period. As Madhu and I spoke about on our last earnings call, our top emphasis is annual recurring revenues, operating cash flows and our target of growing our margin profile. Those are the top three metrics for
the business.
Since 2012, we've invested $4,800,000,000 of capital deployed in acquisitions, 15 acquisitions over the last 6 years, an average price paid at just a little over 2x revenue and $270,000,000 of operating cash flow last quarter. Every deal that we do is measured on an internal ROIC and ROIC definitions can vary. But we look at deals and every deal that we acquire has a payback period, all done on a cash basis and has an internal return on invested capital that we need to meet. I want to spend just a couple of moments on the other part of total growth, which is acquisitions, which remains center in our strategy. Ted is responsible, if you will, for our entire Ted is responsible for our entire sales force.
And so Ted's going to talk about the organic initiatives. James is responsible for our entire renewals organization. And we've taken a point of view after a lot of experience and learnings that the license renewal world looks a lot like the cloud renewal world. I think some companies are still struggling with that. We're not struggling with it.
They all report to change. And so the methods, the procedures, the discipline, the characteristics of adoption, satisfaction, having the entire customer journey being automated is similar to us and so responsible for James James is responsible for. Let me spend a little time on strategic acquisitions. We still see the world kind of separate into 2 camps. You have kind of those who buy things and buy companies and operate them as asset managers.
And they buy and operate assets individually. There are the platform operators, which we consider ourselves being. We are going to, when we acquire a company, integrate it into OpenText. We're going to integrate the sales force. We're going to integrate the engineering.
We're going to integrate the operations and finance, and we're going to integrate the recurring revenue streams. And we've set a target that within the first or second new release, the technologies too will be integrated. So integration is key to that scale. I think you see the scale in the revenue numbers. We don't we're not interested in kind of being over here.
We think the greatest long term value and we take a long term view is to be able to integrate, integrate, integrate to model based on cash and ROIC to act quickly in taking cost out of a business and then grow from that platform. So we remain very passionate about the OpenText way of how we do acquisitions. I'm not going to go to this slide. That's translated into our view of a business system. And that business system starts on top with total growth, acquisitions, organic, emphasis on recurring and more customers in the G10ks deeper penetration and more customers and more partners help us connect what Muhi is doing, right, to the customer, right?
The partners help make that connection of product into the customer, if you will. And this is our this is in a lot of ways our contract with our shareholders, right? This is our contract with our shareholders. Operational excellence, we are a metric, metrics move mountains and we are operationally focused at each of our business units, around tools, systems and methods. We believe it's we, not I, that the best teams win.
We're focused on ARR, AOM, annual recurring revenues, adjusted operating margin, operating cash flow. That feeds back into continuous improvement. We've had a very disciplined capital allocation around dividends and every deal is evaluated on ROIC. This feeds back into how we source into diligence. On our strategic acquisitions, it's we're focused on integration and onboarding.
Integration, integration, integration, I talked a little earlier that we move quickly in that on boarding. We find this to be a really key thing. Employees are not going to wait. Employees are smart. They're highly educated and they just want to know what's happening.
And once they know what's happening, they can make their decision. So we work quickly to get new acquired employees onto our health care plan. We work rapidly to get them into our facility. We work quickly to get them integrated into their. And I think another aspect of the OpenText Business System is how we do onboarding of acquired companies.
And it's a system lot of times based on grit and will and hard work and great discipline in getting there on day 1 or as close as you can. And I think that feeds back into scale and market leadership. In a lot of ways, this is our contract with our shareholders. And we're always learning and always improving. But this is a system in which we operate under, and we'll continue to gain feedback in how to improve that.
Announcements here at Enterprise World. Number 1, intelligent and connected enterprise. This is our vision. I don't think anything is future proof. I think it's a tough term.
But it's certainly a long life vision for us. And we walk through what that means and Mui is going into a little more detail. Our blueprint for the future, Release 16 has a long life, EP5, EP6, EP6, well planned out. We introduced OpenText OT2. Moody's going to walk through that.
We also announced that Release 16 will run anywhere. OpenText Prime Unlimited, Prime Protect has announcements today. And we're talking about a lot of customer success stories, the developer and a big partner event for us today. So these are the our sense of the highlights here at Enterprise World. With that, I'll hand it over to Mui.
Good afternoon and welcome. Thank you for being with OpenText, taking time out of your busy schedule. So let me dive a little bit into products and tell you the journey that we've been on. And as I mentioned earlier, 6 years with OpenText and I've seen EIM move into the digital platform and then become the intelligent and connected enterprise. But let me tell you more.
When you look at the screen behind me, this is a screen when I meet with customers, I usually tell them I could talk about this screen for 3 days, 3 minutes or anything in between. But the one takeaway I'd like all of you to know in this screen is OpenText never eat bread before presenting. OpenText is the only vendor today in the world that could deliver this solution integrated, connected out of the box. And every year for the past 6 years, we have come to enterprise world and highlighted innovations that were organically grown and then integrated with acquisitions. Since I joined OpenText in June of 20 12, we've had 14 acquisitions, some large, some small, something some are in between.
But you look at Documentum, fully integrated into our portfolio, integrated into core in the cloud, integrated into Brava tools, integrated into Blazon tools, integrated into Magellan tools, integrated into security, delivering all of that integration out of the box. Tomorrow in the technology keynote, you will hear an example. One of our largest customers, Los Angeles County, 100,000 plus employees, a Documentum customer. And you will hear his 18 month journey with OpenText, how afraid he was when we announced the intent to acquire Documentum because he was worried his $1,000,000 investment into the Documentum platform is going to evaporate as mentioned, I've heard this word in 2 keynotes. And you will hear in the 18 months what OpenText has done to assure Los Angeles County and the 5,000 plus other Documentum customers that we are here to grow Documentum as a platform to integrate it and to provide them more innovation than the previous owner of Documentum could ever have delivered.
They didn't have mobile application. We give them that out of the box in our portfolio. They didn't have intelligence and AI. We give them that out of our Magellan tools. They didn't have security.
We give them that out of the security modules we have in standards. They didn't have a platform to deliver to the cloud. They didn't have data centers. They were hosting in 3rd party data centers. We give them a global footprint of commercial grade data centers that are certified to the highest standard.
We were one of the first vendor to deliver safe harbor compliance in EMEA by standing out data centers in Amstelvie in the Netherlands and in Joaquin in the U. K. And should Brexit happen, the only thing OpenText have to do is we stand a second data center in the U. K. And create a U.
K. Zone and then we stand in either Frankfurt or Munich in one of our data centers there we put out another commercial cloud and we will have continued Eurozone support. We are the only vendor can deliver these. We are the only vendor that can integrate and allow data blending between multiple solutions because we understand our customers, yes, information is very important to them. But at the end of the day, some parts of their business are sitting in manufacturing system, in ERP system, in CRM system.
We out of the box integrate into the top 5 SAP, Oracle, Salesforce, SuccessFactor, Hybris, Ariba. And in the future, we will integrate those into Documentum. In the future, we'll bring new partners, Workday, NetApp, other vendors that become important based on customer demand. The platform we created for innovation allow us to very quickly, 6 to 9 months, to deliver an extended ECM for sales force, to deliver an extended ECM for SuccessFactor. And that's really the importance of the platform that we brought to life, part of our EIM solution.
As Mark highlighted, EP6 and Release 16 is here to stay and is not going anywhere. For 6 years, we've stood on stage and committed we will always be a hybrid company. 6 years ago, we were only an on premise company. Today, we have customers in the cloud. We have customers in our cloud managed services.
We have customers in SaaS, but we also have great customers on premise and the commitment to all of them is we're here to continue innovating and deliver roadmap. We have published roadmap for EP6, EP5, EP6 and EP7 that we have communicated in user groups to customers and to partners in customer advisory board and you will hear some of those detail in the technology keynote. But it's very important that the customers who invested into our EIM solution, they know the light at the end of tunnel for innovation will continue for a long time to support them. In parallel to that, we will continue to provide them on ramps to the cloud. Today in Mark's keynote, you saw an example of the developer and how easily we can now bring an application to life in the cloud.
Later on I'll demo to you a couple of examples of how easy we can build on top of the platforms that we're delivering. Managed services continue to be very important to us. Many of the big names and I remember 3 years ago in one of the management meetings we were having, we were talking less than 600 managed services customers. And we have come a great journey in the last 3 years, bringing over 1400 customers and adding them to our portfolio. And these are large customers.
These are not a 100 employee customer. These are customers like ABB, Central European Bank. These are large enterprises that securing, protecting information, but allowing an easy I think I'll take that water.
Sorry about that.
Secure that information in the platform is very important and we keep adding to our managed services. Content services, I think you saw the slide. Tomorrow you will hear from what customers. You saw earlier in Mark's keynote today, many of their customers mentioned Content Suite, Media Management. These are our content platform.
The largest enterprises in the world are benefiting from the value that they get out of our platform. Important to understand we're no longer only document management. We manage the whole lifecycle of automating and digitizing. It's also important to know that we are the leader in the market today. We are the leader because of our innovation.
We are the leader because of our commitment to customer value and success, and we go out of our way to make every customer experience to be a stellar one in our solution. And we are successful because we have built a machine that as we integrate new technology that come into our portfolio, 1 or 14 as we have done in the past 6 years, we can very, very quickly integrate them, add value to the new coming acquisition, but enhance our existing overall solution in the value what we deliver to our customers. I'll give you one example to that. Late January or early February of this year, we announced the acquisition of Hightail, a SaaS platform for media management and collaboration. In under 35 days, when we went to the innovation tour at the end of March early April in EMEA to meet with our customers in Europe, we were showing in production in the cloud integration between core and Hightail.
This is really the power of the platform that we now have. The investment that OpenText has made in improving and modernizing our technology platform and our microservices and RESTful API, all 500 plus of them, allowed us to very quickly I don't need a year to integrate 2 solutions or more. I could do that in 30 to 60 days depending on the complexity of the integration, how many screens, how many files are involved, but can easily and quickly be addressed. And that has allowed us to integrate Documentum very quickly, integrate the 2 HP CCM and CEM acquisitions, integrate Hytale, integrate Covisint with Magellan, integrate Rekomind with In case, those are all under a year old or a year and a half old acquisitions. And very quickly we're able to bring these integrations to enhance our offering and the value we give customers.
2,000 plus strong in managed services, Some can be managed in the customer data center, where our managed services team become the administrator and the keeper of that system. They become the help desk to the customer. Some of our customers actually given us their servers and say take the server, we're going to ship it to OpenText, you bring it up in your data center on your network and you own it. You manage it and you provide me the service and you are our help desk. And we have customers that says we don't even want to buy hardware.
You take it all, you deploy the hardware you want, you manage, you upgrade, you secure. When I need help, I will call you, when I need new capability I'll call your professional services to come and deploy it. And all we announced today that we will now run our Release 16 solution in any cloud. We have customers who today operate in Amazon or Azure and they might come back to us and say, I don't want to fragment my data my cloud footprint. I want to keep it all with Microsoft.
They give me better price or I have a deal with them or any of the above. We're here to support them. They through our Docker enablement and Cloud Foundry enablement of every one of the Release 16 components, they could take it and deliver that solution. Business network continued to grow. GXS has been with us now 4 years and a half and continue to grow and prosper.
You saw some wonderful names today BMW. I happen to be a customer of BMW. So I believe in their brand, the ultimate driving machine. Well, BMW now depends on OpenText to manage all of their supply chain with their partners. Millions of transactions every year will flow through our network as BMW orders seat belt and tires and computer electronics component to onboard the 7 processors and 760 plus sensors they have in their vehicle.
They are going to depend on OpenText. Banks, hardware companies, other automotive companies have depended on OpenText to drive the business network. We are the largest business network. And if you look at Sterling Commerce, if you look at SBS Commerce, if you look at Comarch, if you look at Ariba and you add all of their transactions globally and double that, you may get to our transaction count in the cloud in the secure business network. And we're proud of what we have done because we now allow our trading grid customers in the cloud to do data blending as well leveraging our Magellan tools.
They could bring data out of SAP. They could bring data out of a manufacturing assembly line system and they could blend it with their transaction in the trading grid and deliver one executive dashboard that could predict certain behaviors, predict order paradigms, can predict anomalies in historical data and can provide better intelligence to the customer. Nestle is one of the big customers today in our trading grid that uses data blending to bring data out of their SAP system and blended with their trading grid. And Nestle supports 65 countries around the world for their suppliers and their supply people they sell to and people they buy from, they depend on the business network to drive that business. You heard Mark announce OT2 today.
The big importance of OT2 is allowing me in engineering to integrate our acquisitions faster. It gives me an amazing modern foundation, 1 unified data model, 1 tech stack and by the way, one very, very flexible tech stack and let me tell you what I mean by that statement. I don't need a mainframe that is going to cost me 1,000,000 of dollars. I don't need a proprietary technology that only have 10,000 developers around the world that no mainframe technology. You can pick the hardware of choice, the vendor of choice.
You can as far as we're concerned, you can even build the hardware by running into the electronic store and buying a chassis and buying a motherboard and assembling a hardware and installing Linux on it and our platform will run on commodity hardware. Pick the vendor of choice that gives you the best deal and buy their hardware. We give you flexible architecture. We give you standards in components that are available with plentiful of resources. You don't need to know mainframe technology, you need to know Linux, you need to know Postgres, you need to know components like Kafka, like Python, like R, like Scala for AI algorithms.
There are 100 of 1000 and maybe 1000000 developer around the world that know these technologies. Not only OpenText, it's not proprietary to us. We built on standards to give plenty of flexibility to our customers. They could partner with Accenture. They can hire their own people out of college.
They could go to freelance.com and hire engineers over the Internet globally and they will bring the skills they need to extend and to build on top of our platform. OT2 will only run-in our cloud because we believe in our cloud we could continue to push more microservices and extend the platform and deliver a global footprint that we already have to really build SaaS application in a much more simpler way and much more faster way. Tomorrow in the keynote, I will demonstrate couple of these applications that we have delivered top and later at the end of my speak this afternoon, I'll show you a few example and build on top of the demo that Mark started in his keynote today. OT2 as a platform is again based on very standard components, Cloud Foundry, Kafka. OT2 as an application or services.
We have hundreds of microservices today in our catalog and those are only going to grow very quickly because one of the standards I have for the 3,000 plus engineers at OpenText is with every release, quarterly or EP release, they have to deliver new microservices to their product to enable deeper integration between any 2 or more products and to be ready to bring in new acquisitions, welcome them quickly and integrate them into the OpenText platform. And on the application, we will demonstrate how quickly we could build application either on top of our core platform or leveraging AppWorks, our low code. The goal on the application side is keep the customer in control or the partner in control of their destiny. We don't believe we should dictate on companies how they build application, because they may already have standards in house with trained skilled professionals. We don't want them to change that.
A customer that has engineers that know Java, great, build Java application. If they have C, builds in C, build it in JavaScript, build it in HTML, in Python, your choice. If you don't have developers and you don't plan on managing developers, build it using our low code application. A business analyst in a finance organization, in a manufacturing, in an HR can build an application in under a day that does one specific or 10 specific tasks. And I'll show you a few example of that.
But the really the goal is to keep the customer in control of how they use our platform, how they use our technology to benefit and add value into their enterprise or their government entity. And with the announcement of OT2, as Mark mentioned, our platform is complete. And now really it's building it's these building improvements and finding ways to do better user interface, finding ways to integrate deeper into new IoT devices that we don't as new IoT devices come into the market. Today, we play very well in the healthcare. We play very well into the automotive.
We play very well into the manufacturing. In the future, we want to play into the logistics. We want to manage ships. We want to manage aircraft. We want to be able to predict maintenance schedule, predict certain behavior, not only for automotive, but for any sensor that will become more and more will come into the market every day.
And as Mark also highlighted, OT2 will have a parallel roadmap with a completely separate platform OT2 engineering team delivering quarterly releases as we continue with our EP5, EP6, EP7 and EP Beyond for the next many years to come, we will have quarterly releases in the cloud where we will introduce new applications, new microservices or integration of newly acquired assets or companies into OpenText. And if we could please switch, we could take a look quickly at couple of demos and show you what OT2 can do. So let me paint couple of scenarios. The 2 demos I'm going to show, the first one is building on the developer demo that Mark started this morning in his keynote. And I'm going to show you from the Covesent IoT platform, how we manage.
I know there were a couple of mentions, Mark mentioned it, Sabne mentioned it, creating a digital identity for a person, a thing or a machine in the Internet and how do you manage the relationship. So the scenario I'm going to paint for you is think of a rental company or a leasing dealer car manufacturer that has plenty of cars. Those cars can be rented daily to different individual, weekly to one person, 3 days to another. These cars can sit on the lot for 3 months. So I'm going to walk you through how we provision these devices, create the relationship to people in our platform and that's the Covisum platform that today how many of you are GM users?
General Motors, Chevy, Buick? If you are a GM user and you have OnStar in your vehicle, OnStar drives Empower OpenText drives EMPower the 9 +1000000 identities in OnStar today in every GM vehicle in the U. S. And Canada. And OnStar is expanding to go.
I am a GM, I do have a GM vehicle. And they have allowed you to do 3 things. There are the safety aspect of an OnStar system, If, God forbid, you're in an accident, you crash, the ability of an airbag is deployed, they are able to connect to emergency services, dispatch an ambulance, a fire truck. If they sense a fire, they dispatch the right personnel to help you, a 911 call. They give you maintenance schedule and recall schedule for every piece that is managed through sensors in the vehicle.
And they allow you some user friendly aspect of being a connected car. They give you the ability to connect to your Spotify music. They give you the ability to do voice messaging, so you could text an appointment that you're running a little bit late. They give you many other user aspect in an OnStar system. The way we manage and secure these identity is what I'm going to try to show you here.
So I'm going to start by going into and building on the demo that Mark started. This is our Covisint OpenText Covisint IoT platform. So I'm logging in, in the platform. The first thing you will see is all the areas I have access to. How do I want to handle automatic crash response?
Do I
want to call 911 or do I want to text my wife or do I want the car to call my son or call my emergency contact? I can manage that. How do I handle emergency services? How do I handle stolen vehicle? We give you all the capabilities and the functionality that we can offer a consumer or offer a car manufacturer to offer that service to their consumers.
But the important part is understanding and you saw the screen in Mark's keynote today. This is how you create the digital twin and the digital identity of a vehicle. And on the surface it sounds very simple, but when you dive under the hood and look at what actually has to happen and the multiple level of relationship that we have to provide as a service to our customers, I have to know a lot of things about you individually. I have to know a lot of things about the vehicle and then I have to build relationship. Because today I might walk into Avis, I am in Toronto and I might rent an SUV or a Ford Mustang.
I come back to Toronto in January and it's snowing and 37 degree below 0 Celsius and I might need a 4 wheel drive SUV. Managing these relationship and identity, a dealer or a fleet manager can define templates. And they could come in and come in here and I've defined couple of templates to look at and let's look at a fleet template. They could define templates that are specific to region, meaning what you rent in Germany or in the U. K.
Is different than when you rent in Canada and the U. S. Here they could define the attributes of the vehicle. They could define description. They could define other information.
Then once they have defined a template, they could go into the device and create templates for devices. And template for devices can mean defining the type of vehicle that me as a fleet manager I'm going to service. So you could define a full size car, a truck, a compact car. When you define that underneath you define the relationship and the attribute I want to manage from that IoT device. I want to know the VIN number, that's a unique identifier to follow that device in my cloud every time.
I want to know certain attributes, tires, I want to know the year, the make and model, I want to know GPS data, how do I connect to the GPS device on that vehicle? I want to be able to set certain commands that can operate on this vehicle versus not operate on other. And let me give you an example. If you're on an automatic vehicle, automatic transmission, I could send a start command to a car. If you are on a stick shift manual transmission vehicle, a start command will not work because 99% of vehicle manufacturers today in the industry you have to push on the clutch before you could start a manual vehicle.
Chevy, Buick, GM, they all if you have a truck that is stick shift, you cannot start it remotely because you cannot be pushing on the clutch while I'm in Toronto if my car is in my garage in California. And so that's where you define all these different permutation or different type of relationship by vehicle, by device. And now once I have done that, I could go to the devices and that's where I start entering my cars. And so we've used we didn't use real brands here, but just to show you an example, if I look at Model 1 of SUV, I could see all the data. I could see the VIN number, I could see the tire and how much they should be inflated to, I could see the GPS spin, I could see it's a Yukon, it's made by Chevy, the color is silver, the model is 2018, I could define this to be an endless set of attributes that are important.
And this is all can be defined easily in our platform through the administration and configuration process. There are no customization. Now once I've done all of that, I can integrate to Magellan. So let me open up another window. And coming into Magellan, this is our AI, content analytics, semantic analysis, connectivity and then predictive intelligence.
From here, I could see a summary dashboard about all of my vehicle. I have this many total drivers and this of course can all be managed to be by week, by day, by hour, any different filtering you would like to do. And I'll show you examples of these filters. I could show you I can integrate into weather and show you weather forecast. So this way your user or your salesperson in the rental company can recommend 1 car versus another if it's going to be icy and cold.
But let's look at fleet maintenance. I could drill down and I could quickly see a summary dashboard. I could see unique identities of vehicle, but I can also see filtering. If I'm only interested in looking at 1 car brand versus another, if I'm only interested to look at condition or let me see, I want to look at brake pads. I select the brake pad and it automatically refreshes.
And now I see all the vehicles in my fleet and I see one of them has a warning. So now I could drill down on the VIN number of that vehicle and I go back to seeing the exact previous attributes that I've captured for that vehicle, but I look at other data. I could look at scheduling maintenance. I could look at other information. I can integrate into the contract and leasing application, I can integrate into part vendors if I need to order brake pads for this vehicle or if I need to order an oil filter or an air filter.
All of that can be done through the integration between our Covisint IoT platform and our Magellan AI tools. So that's one example. Let me walk you through another example. I know last year I got the privilege and opportunity to present to all of you and we told you core was very important to us. So let me show you some of the innovations that we have done to core.
This is one of the demo tenants that we have in our production data center here in North America. So I created an account on this tenant and I'm going to log into that account. And if you if any of you have seen Core before, of course, let me make the screen a little bit bigger, apologies, between my Mac and the projector. So you could see all the things that we've talked about in core. You have your dashboard, you have your files, you have all of that.
But now you see several new things. As an administrator, you see a security tab where we've introduced 2 factor authentication. We've introduced encryption at rest to assure our customers that their data is safe in our platform, in our data centers. But we've also added couple of new innovation into. I can now create applications in Core.
So if I am using Core with 20 other group colleagues or team colleagues, we are working on a project, I could build applications easily. And actually, I left the gentleman that followed Mark's keynote, the speaker this morning, I left his presentation 10 minutes early and I came here and decided to create an app for all of you. And in under 12 minutes, I created this app. I called it Enterprise World. You could see when it was created 11:59 a.
M. This morning. And of course, I could have created a very complex app. I'm a geek, so I could have done 80 fields, but I figured 10 will do for this application, but I decided to create a help desk system. So let me show you the application.
I could go in and easily select a date, and say 12 and I could put a username and I'm going to put my username And I'm going to select the status of a ticket. I'm going to put work in progress, problem summary, projector not working. Sorry, guys, it is working. I'm going to select some spec. I am on a wired network.
The operating system is a Mac. And I'm going to continue on and build some are mandatory field and some are not mandatory field. And I'm going to save the record. My record saved and you can notice I saved an earlier record also and it shows you the due date, it shows you who the owner is, who it's assigned to and very quickly. Now this is easily done by basically drag and drop.
I don't need to know Java. I could come in here under the App tab and say click App and I have a designer that I could drag and drop things to and in seconds I could create an app and I could do preview and I have an app with 2 fields. In addition to an app, we allow our customers now to create workflow. So they can even take the app to the next level and associate some workflow with it. And the workflow could be a 1 step review and approval or can be a 5 step assigned to 10 people process for publishing media and anything in between.
And the goal is to add value to our customers in the cloud. Core is integrated on the back end with Release 16 to Content Suite and to Documentum. So we allow our customers through the integration with R16, with Release 16 to quickly move content from on premise to the cloud to expose it to their partners or to third party providers, and then we allow them to build simple application to leverage and take advantage of that content. Tomorrow, I promise there will be at least couple of more demos on Life Sciences, which is also our commitment to continue supporting our Documentum customer base. So I hope I get the privilege of having some of you in the audience and you will hear with a couple of customers.
Thank you very much for being here. And let me introduce my colleague and good friend, Simon Ted Harrison.
Thanks, Tommy. Thank you very much. Good afternoon, ladies and gentlemen. I have a few messages to go through for me with you as Head of Sales for OpenText. So today's a product day.
These few days are around product, but that's a great topic for me to talk about because it drives the sales and our objectives inside worldwide sales in OpenText. We've seen this diagram consistently through our events today and also through the slides that we've already had today. So I thought I'd start with this as the anchor slide. And it's interesting to me as Head of Sales because it shows a couple of things about our product suite. First of all, on the right hand side, we've talked about the breadth of our suites, which add into an EIM platform.
And we often win customers because of the breadth of that functionality. Many of the CIOs we talk to and you'll see present over today and tomorrow and we'll talk about the same problem inside an inside an organization. You get down to a very small number and eventually you come down to OpenText, we're capable of doing that. So as an innovation specialist, if you want to map out your organization's classic horizontal processes like order to cash or procure to pay then the least number of systems inside that process the better because it means you're not fragmented, you don't have security problems, integration problems. It means you've got end to end site over that process.
Whether you're in procure to pay, you're on boarding a supplier, you've got a supplier contract management system, you've got a portal for your supplier to onboard them, you're handling the trading with the suppliers, you're looking at the invoices that are coming backwards and forwards. And these are all information problems which look at independently will lead you to what you'll see in many IT landscapes today as a fragmented set of point solutions. But if you're looking for an enterprise information management platform as our breadth, then you can invest into a platform which you can comprehensively cover that end to end. But we also win customers. We win customers because of the breadth of our offering on the platform, but we also win customers because they come to us with a specific problem sometimes.
And if that specific problem is around managing the information associated with their employee or with their customer experience or with their supplier efficiency. Then we'll win customers like that and they'll often invest in OpenText because we can satisfy that standalone problem, but also educated and fully aware that they're making an investment in something that can be broader. They're making a strategic investment. They're solving a point solution, but they're making a strategic investment in an organization and a platform, which means that they're not going to lead to more fragmentation when they come to the next. And this really drives a lot of our customer conversations.
So I thought we'd start with this slide as consistency through the decks and leads me into the next. So what I've come here to tell you about today, ladies and gentlemen, is about some of our strategies for organic growth. Mark talked about organic growth, that's me. Acquisitions, Mark talked a little bit about. We'll have James on next on our annual recurring revenue.
And so I'm going to hit these three topics competitive replacement, partner expansion and install base. And I'm going to tell you a little bit about each one of those and then I'll finish with some customer examples. But first, the bottom box, the Global 10,000 customers, just a little word about that. We are focused at OpenText on the largest organizations in the world, largest commercial organizations, also largest public sector organization. Largest commercial organizations also largest public sector organizations.
These are the kind of organizations who will make a strategic bet and need a company of scale like we are with a proven pedigree of managing mission critical applications for companies that are outside. Sometimes it's large, sometimes it's complex. It's always at scale and it's always business critical to be able to rely on a company like ours. So we do focus very firmly and a lot of our strategy is around those larger organizations for those reasons. And many of the largest organizations in the world today trust OpenText for those business critical applications.
So let me hit on these three topics. And on let's start with competitive replacement, which is always fun for me. So there are 2 big drivers for organizations who move to OpenText. And one of them is they want to move to a modern platform. We really are the standout market leaders.
We are very focused 100% as an enterprise software company focusing on this EIM problem set for customers. And so CIOs find that they may have made investments in the past in platforms that have become old. They've not been invested in because they're not the sole focus of the organization. The organization is smaller than us. And they come to OpenText for a modern platform with the breadth to take care of all the challenges inside their organization.
And also they come to us for competitive replacement because they become deeply fragmented. So they've invested in a particular solution. They found it won't spread. It won't broaden. So there are other information management requirements, so they've had to invest in another and another.
And they need to consolidate. And consolidation is a prime driver towards OpenText as well. And we win when it comes to competitive replacement, because we're the clear market leaders, market leaders in content services, market leaders in the business network, market leaders in customer experience management with our DAM products, with our CCM products. And the breadth of capability allows a defragmentation when you move on to our modern platform and they're buying in suites of software for these challenge sets rather than in point solutions. And because of our expertise which leads me to the path to value box, we have over time become very adept at these migration as well.
We've got we use our own software tools for these migrations to pull this information in. We've got specialized migration and archiving tools. We've got a very expert professional services team, a dedicated team for migrations of this ilk. We're very good at taking information out of these legacy systems. We offer incentives to customers who want to come onto our platform and get rid of those tired old platforms.
And we have many customer references who've done just that and are very happy to talk to audiences about their good experiences in doing so. And then finally as the market moves we're right there with it. And whilst in the past these migrations have often been from on premise to on premise, there's the added value for our customers of being able to wrap the whole thing up and just have Open Tech take care of it 1 on all. So through our managed services, managed services perhaps still on premise or the but also all of the services and the infrastructure around that taking care of security, taking care of upgrades. They never have to upgrade again.
They're on a modern and consistent platform throughout. So we get a lot of value conversations with our customers about competitive replacement, which is why it's one of our strategies for organic growth. And the second box around our installed base and our opportunity. Well, I mentioned the D10 customers before. What we really want to do with those larger organizations is we want to add more of them as per competitive replacement slide, but we also want to do more with the top companies that we already have.
This is our installed base. And so our opportunity in our existing installed base is to take them. Perhaps we've won them through 1 or 2 of these specific challenge sets in a point solution. Our opportunity is then to deliver successfully and quickly, give them the value back that they originally saw in their investment and then move on to the next project and the next project and move them into an investment and our suite and an ongoing program of projects to get more and more value from the full suite. And in doing so, account management is very important to us and my sales organization, because the better the level of customer intimacy, the more time you can spend with that customer, more they will trust you with your insight of being market leader, but also your insight from other customers that you work for.
And the 25 years of OpenText has been around to help lead them in their digital transformation plans. So to attach projects to our platform that they can see they can roll out along the way. And as well as moving from point solutions to suite, our opportunity then is to move cross suite and to sell them more suites. As they start to turn on functionality, we saw an example or I'll show you an example in a moment about a customer who invested in our content services then found great value from adding artificial intelligence over the top of that. We also, as I say, have the opportunity to migrate our installed base to the cloud.
And we're seeing great demand from this as customers like to take the whole set that they've already been receiving value from over the last, I don't know in some cases 20 years and say, OpenText, we just want you to take care of this all now as a managed service. And as James will explain in his presentation, we have a nice model for those existing customers called BYOL, bring your own license. I think you mentioned it, Mark, where we can take the investment they've already made, they sustain their maintenance, but they move it into our cloud and then we take care of the infrastructure, we take care of the upgrades, we take care of the system itself. It's a nice model for our customers, takes cost out for them and adds value to OpenText. And finally, again as Mark mentioned, we like to simplify consumption.
And because of this kind of energy of travel for our customers from going from their initial projects success into a broader strategy. And one of our consumption models which really has good play is what we call the unlimited. So the unlimited allows over a fixed time span agreed with the customer full range to all of our products and functionality to that customer. So that they can get they've got the freedom to move between products, turn on projects and gain value during that time period of all of our different products. And just this week now we've launched that same sort of model in our cloud as a managed service, the Prime Unlimited.
So our installed base. And the 3rd box partner expansion. So we would really dearly like to be everywhere all of the time. We like to be in every bid. We like to be in every customer conversation about this type of solution, but we can't.
Increasingly, we're having that kind of demand on our time as our profiling increases as a market leader, but we can't be everywhere, we can't be expert in everything and we can't be there all of the time. But our partners extend our reach. And as Mark said earlier on, we've got a lot of partners at the event today. And we And we have a very well known partnership with SAP, for example, and they're here at the event today. We're successful with those and we're adding new products to that relationship.
Over time, we have also broadened out our ecosystem partners. So we also had mentioned earlier on of our extended ECM for Salesforce, Salesforce being an ecosystem partner for us as well. We partner strategically with some of the largest system integrators. We have OEM resellers who white label embedded parts of our technology in that. We have of course implementers.
We're driving a lot of implementation amongst these organizations for our products to deliver value to their customers. And cloud partners, we allow our partners to sell our cloud solutions to their customers as well. And finally the developer community we heard much of. I think we heard this morning a developer community of €50,000,000 but don't quote me on that. I think that's what I heard in the keynotes.
But certainly, a burgeoning developer community who are using our tools already to develop on top of our platforms and get access to that great functionality through our RESTful APIs. And this is something that we intend to grow in the future as well. So those were the 3, the installed base, the competitive replacement and the partner expansion. But I could illustrate each of the topics that we've hit upon today with a few customer examples. And Louie already told us a little about GM.
We like this example. We'll see it again in the keynotes tomorrow around our identity access management and our IoT play that came through Covisint as you can see in the top right hand corner. So I don't think I need to tell you again what this does. Although the next time you get into a GM car, you'll probably look for that on star button so that you know what we're talking about. If you don't know 1, you'll probably hire 1 in the next few weeks, so check it out.
And I think another point that plays to what I've been talking to you about in these last 10 minutes or so is it's useful to know that while this is a great, great customer for us for IIM and IoT, it was already one of our biggest customers at OpenText. In fact, General Motors consumed on many of the suites that we saw in the original diagram. So this is a good example of what we mean by a G10 customer and having them for life. This is a good example of an organization that's consumed different parts of that product. And maybe not necessarily seeing how it adds up to begin with, but it's since seen that a comprehensive platform gives the ability to have a holistic information management strategy with the breadth of OpenText.
Here's a lovely example of our managed services. Nestle, you will all know it's the biggest manufacturer, biggest food and drinks company in the world and they trust their supply chain all the way through to retail to OpenText Managed Services. We're very proud of this customer. We have many like it. I'm not going to I'm just about to trot out some statistics about our profile in the supply chains, but I'll stick to what I've got on my slides.
But here they are, 3,000 trading partners across 80 markets globally. Something to hit upon here is the world's largest companies they trust OpenText and with our managed service to keep them running. These are business critical. Managed services is huge for us as an organization. It really is front and center of everything that we've been talking about at OpenText in the last couple of days.
Two more examples to go. And I wanted to touch upon our Magellan win. Malaysia Airports are using our AI to improve their customer service. They're all about service and the passenger experience. And they're using it to track customer activity and understand how to satisfy their passengers better.
The point I'd like to make about this one apart from the fact that it's a good Magellan customer is that they also consume from our content services suite. So the reason why they're able to gain this insight with our AI and analytics tools is because they store the content in our content services. And that's really the golden ratio here, which is where you're using OpenText content services to store your information over a period of time that gives you the gold mine and then the digger for that mine, the extraction if you like, the site extraction engine if you like is Magellan on the top of them. And my final example if you'll bear with me ladies and gentlemen is British Tobacco. And I chose this example because it hits to my partnership slide.
So what we did with British American Tobacco is they invested in our extended ECM for SuccessFactors product. This seamlessly integrates our content management and storage capabilities most often in the cloud with another provider, albeit SuccessFactors, which is now part of SAP, but another ecosystem partner there. British American Tobacco, they can't tell the join between their SAP, their SuccessFactors or information and their managed, stored, secure, retained information that's held by the OpenText system behind it. The great example of us working with our ecosystem partners and a good example of how we're stronger with our partners and we have better reach. And that's the information I have for you today.
Thank you very much.
So I
wanted to talk a bit about our recurring revenue team and our customer support organization today. I'll go through a bit an overview of the organization and give you a bit of our premise on how we operate the organization and the key drivers that we have and the things that we're following up and making sure we're chasing through for our customers. I'll start with a slide that's familiar. And I think we've seen this Mark's talked about this slide today. Ted and Muhi have both talked about this slide today.
So I won't dwell on it too much. But I think the important point from a recurring revenue point is when you look at the suites, the platform and the applications that we have out on our customer base and you consider the global 10 ks customer base that we're chasing, we're seeing more and more over the last few years, more and more of these customers have more of these on the platform side, as Ted talked about where you're drawing from multiple suites. And on the application side where your business users that are actively using the applications that are flowing through and getting the information out of our Intelligent Core, which from a recurring revenue point of view, it makes a very good point for us as we're working more and more with the organizations and we're becoming more of a trusted supplier on a larger basis as we go through the years. So, a bit about the organization. So overall, there's about 2,000 people in my organization.
We've got 1200 technical analysts that are out there making sure that our customers can use the applications and the services that we deliver be it the enterprise content management or the business network trading grid or in some cases working to get where those things are working together being integrated across those applications and services. And we're spread across the globe. It's an always on support organization. You can see our major operating centers here in San Mateo, Waterloo, Cork, Bangalore, Manila and Sydney. And then obviously we operate in smaller locations, regional centers as well.
For example, we have a center in Tokyo that takes care of our Japanese market and we're the leading as you know, leading supplier in Japan for business network. And we need to make sure that we have that local support capability. Down at the bottom, you can see that we support in 11 languages. The other thing that doesn't really show up here is that we're closely integrated with the engineering organization. So we're moving at the large presence.
The support organization has a large presence as well, so that we can move things along through the system on a 20 fourseven always on basis from level 1 in support right through up into engineering for those critical issues where needed. And it gives us that ability to focus on making sure our customers are successful, which I'll touch on in a minute. So as you look at the organization, you can get that always on in the 11 languages, 60 countries across the globe. And we do provide support through some partners in regions, but generally all of our support is provided direct from OpenText. We want to have that really close tight knit connection with our customers to make sure that we've we're right there with them.
We have 1 renewals organization. We have 1 renewals organization for Enterprise and Maintenance business as well as including our cloud. We've pulled those 2 things together as Mark talked about. So we're flowing all that through that organization, making sure that we have the processes and the procedures in place. And we're really focused on in renewals we're focused on speed and efficiency and obviously making sure that we're getting them done on time.
Talk about customer engagement and analytics automation in a minute. But our other initiative that we have listed on this slide is our CSAT initiative. Really what it is, it's focusing on making sure that we're measuring every interaction with our customers, taking that feedback from the customers and then taking action on it. So we've got an internal score that we're following and we're chasing, but we're really all about understanding what our customers are telling us at every point we can. We take that back in, we analyze it and then we take action.
I'll be talking with Moody and we'll go through what's happened there. I'll talk to Prentiss and services organization and we'll provide feedback to each other
and make sure that we
can continue to improve that. And that's important because it's all about making our customers successful. As we go through the next slide, when we look at the drivers for our annual recurring revenue, product adoption, no shock, product adoption is number 1, whether software on premise, it's in the cloud, it's business networks transaction. So making sure that customers are able to use our software, our services to the fullest Obviously, we need to be really efficient in order to make sure that we have a pulse on
each one of those customers,
but as well as pick up any warning signs that are coming across and to deliver renewals in some cases where we can take advantage of automation. Our cloud is becoming more and more important as a way forward for us as we've talked about already. And then all built on a layer of ARR best practices that we've looked at internally and trying to make sure that we're as fast efficient as possible on that renewal process. All that built around customer satisfaction as I talked about our CSAT. Okay.
So product adoption, it's a bit of a cycle or roadmap, making sure that we've got our customers with us for a long journey. And as we start it all starts with customer success, right? And if you follow anything about customer experience or customer success, there's a process, there's practices that are in place. And it's about understanding what customers are using, what they're not using and how you can help them increase their consumption of the products that you have out there. And it's a lot of it's through analytics, understanding what types of issues customers are calling in on.
We have a program in house where we have predictive analytics looking at our tickets so we can tell when customers have issues, are there issues picking up, are they decreasing, what products, features, functions are they using, are they calling in about all those types of things. So you really want to understand that, understand what they've purchased and then pull that together. We have a program at OpenText called our Elite Platinum program, where we're looking at our top customers and we're managing those via customer success managers, who are keeping an eye on the analytics and making sure that we're trending things in the proper direction. Outcome engineering is a newish process for us and it aligns with value engineering, right? Value engineering sales goes in, they do a value engineer, they'll give an ROI to a customer.
Well, the outcome engineering quite simply says, let's follow-up on that. Let's make sure that we're actually able to deliver on those and that customers are able to
do that. So there's a process in
place where you walk through, our customer experience organization at OpenText is focused on our customer experience our customer experience organization at OpenText is focused on our transactional surveys with our customers. So I talked about our CSAT program where we're making sure that we have that pulse on the customers. It's our customer experience team that does that as well. We'll do things like our net promoter score surveys that we run periodically and tie that all back into all of these so that we've got product adoption and really maximizing that product adoption. The other thing that we'll do is make sure that we have proactive webinars, conferences, discussions with customers about areas where we're seeing issues or seeing opportunities to help our customers along.
And all of that is driven through our customer experience So customer success through AI, I talked about briefly there a second ago, but there's a huge opportunity for us at OpenText to get more information out of the data that we have. When you think about the data that we have the organization, obviously, we've got contracts, we've got ticket information from customers, we've got our renewal data, we've got sentiment analytics that we can run against our ticket tracking systems. So we can look at things, look at tickets and determine if something escalating, right? When you take the ticket information, the date, the number, the product and all those types of things, and then you start to run that with sentiment analytic analysis, not one of my better speaking points. So that really complicated work, when you run that with the ticket data, you can actually start to see what's coming out of the tickets that might be sitting in a database when you're one analyst over here and you're one analyst over here.
And remember, we're talking about 1200 people serving our customers that are spread out across the world. We need to be able to bring that together so we can actually start to filter the issues up to the top and be more proactive and work with our customers and actually add off a problem, even in some cases before they know they have a problem or before they know they have 3 or 4 people working on different issues. We can reach out to customers and say, here, here's what we're thinking. Here's what we need to do to pull these things together and to get them addressed. And then on the renewal side, you can start to build these things together.
And from quite simply, looking at renewals data, customers tend to renew in a specific period of time, right? Generally, you'll see customers specific customers who will issue purchase orders 15 days before the renewal expires or they'll be 30 days in advance and they'll be in certain stages of the renewal process. Well, using analytics, you can pull these things and pull the entire system, so you can see when people are starting to go off, right? So if somebody is 29 days late or sorry, 29 days early, not a problem, generally doing 30. But if you've got a customer who renews 30 days early and you're generally back and forth and you're working with them, and all of a sudden, we know that we're into the last week before the expiry.
You can flag those things up. You can start to bubble those up and make sure that we can get extra effort on them. And that becomes really important when we're looking at things that we can automate. So a lot of that 120,000 or some of that 120,000 we can actually automate the renewal process. We send out a renewal notice to the customer, that customer will return that.
But you want to make sure that your system can actually catch if there's a delay. And we actually have the ability to do that. So once we send it out, we send out the notice and we send it out generally a period in advance. If we don't have a response in a certain period of time, we'll send another and then it'll escalate to a human and actually involve a human being in the process actually start to chase that renewal process. So we do have those processes in place and it's through automation.
And it really does help us maintain the speed and make sure that we're getting renewals on time or before expiry in our case. But as we go through this, we're continuing to expand the opportunity that we or the usage that we have with Magellan in our own internal processes.
The OpenText Cloud, Ted talked about
the cloud and we see the cloud as a obviously is a huge opportunity. And as we started we're seeing more and more of this bring your own license, we have customers who have an on premise installation with us. They've been OpenText customers for a long period of time and they're looking at it saying, okay, maybe I can get more advantage and save cost by moving it into the OpenText cloud. You have the OpenText experts who are experts in delivering our software, our functionality to our customer base. Mean, we can focus on that.
Let us be what we're great at. And then our customers, they have the ability to go off and deliver business value, deliver their own business value. They do what they're good at, we do what we're good at, and it's a great solution all around. And we're actually seeing this speak more and more. When you look at some of our managed services deployments, the from an ARR perspective, those customers are more sticky.
They're continuing to expand their usage of our OpenText products. They're going faster, farther with OpenText products and that business expert, great opportunity for us as well. When you look at the functionality, you saw that a great opportunity for us as well. I mean, you look at the functionality, you saw that the demo that was out there this morning. Savane did a great job going through and working through that.
And we believe it's a great opportunity for us going forward. And as our customers have started adopting, we've seen our core customers, we've seen the renewals and picking up as well. So that's a great opportunity for us here moving faster. And our customers, and I'm going to wrap this up on our targeting our Global 10 ks customer. These are the top 10,000 organizations in the world and you can figure out where they are and you start at Walmart and you go 10,000 from there.
But it's really our sweet spot. And these customers are big businesses. They're complex. They're multinational. Ted talked about Nestle, right, if not the biggest food company in
the world. But
when you're looking at the complexity in those organizations, Nestle Business Excellence, they're looking to take complexity out of the organization and we can really help them do that. And that goes across that Global 10 ks, right? I think these organizations that they're all looking for solid business outcomes. They're not looking to become technology companies. Sure, they use technology, but let's get out of the technology business.
Let's focus on delivering the food to the world or the cars to the world or what have you. And they're looking for organizations with customer centric focuses. And as I talked about with our CSAT or our customer success at the center of everything that we do, we believe that we're fully in line with those customers, integrated support model, we've got industry expertise. And we've got that single point of contact that we have for renewals, right? It's one organization.
It's one team across the globe, making sure that we whether you're a business network customer, you're an enterprise software customer, you're a managed services customer, I mean, all those things pull through our annual recurring revenue team and we do it on a timely manner. So it sets us up to be for a great success here. So I'm going to wrap up with that Mark
and hand back to you. Thank you, James.
Thank you.
Greg, we're going to do a Q and A on stage now. Okay. That's great. While we have all had on stage.
And I'll be the roaming microphone here. So if you have a question.
Madhu? Yes,
Madhu?
Okay. First question from the audience. Any questions from the audience? Gentlemen, over
here. Great. Thank you. So Mark, you talked about your 3 priorities early in your presentation. One of them was a cash flow target.
No per share targets there. I'm not sure whether those are internal management targets or for shareholders. Maybe you could just talk about that?
Sure thing. Thanks for the question. We're in our quiet period. So I'll give maybe just a sort of directional answer, if you will. We got feedback after the call, and Madhu and I spent a lot of time listening, gathering input after the last call.
And some of the feedback is you want to add a per share metric to that. So we received that feedback and we're contemplating it. I will note, right, that I would just look towards our historical dilution, right. We don't have a typical Silicon Valley issue of dilution and then having to buy back stock to kind of undilute. We've used equity sparingly through the years.
We use some equity with Documentum for sure. We used equity when we completed GXS. I think we used equity a third time back with Hummingbird. So if you just kind of look at our kind of use of equity or dilution overall, I think we've managed that dilution very effectively as a business. But we received some feedback that maybe it would be a per share metric.
We've received it, and more to follow on that. But I would like to draw a note just on how we've operated our philosophy on dilution and our philosophy on capital allocation, right, because that adds to the share
count.
Thanks, Mark. The move to public cloud with EP5 feels like a natural extension of the OpenText product portfolio. And were existing customers asking for this capability? And does this retooling open up additional opportunities to strategically go after new customers?
Yes, great question. So we're a high we still view the we view the world as hybrid and nothing has changed in that. And if you speak to customers here, you will get that resounding, it's a hybrid world. And there are workloads for on premise. There are customers want some of the benefit of cloud, but they want it in a private cloud or as we add to that managed services.
And there are workloads for the enterprise, the Global 10,000 that we feel we can offer also now as a public SaaS cloud. Archives, various applications, being able to share and collaborate outside the four walls of an organization. We think our Internet of Things platform is actually a SaaS platform. Our electronic invoicing apps are is a SaaS platform today. So, we are still targeting the Global 10,000 We're not ready to have Ted go build a mid market sales force.
The new opportunity or certainly new classes of workloads and more Global 10,000 customers will gain experience. And one of the natural questions will be does this bring you to the mid market? I'm sure we'll win mid market customers, but we haven't built a mid market sales force yet. Mark, I was just wondering if you could discuss the M and A environment right now. So the M and A acquisition environment right now, there's obviously seems to be more competition for deals out there in the market.
There's record amount of private equity capital. A lot of that is specifically focused on software. Do you see that driving up multiples or deals being more competitive in the market and how you're responding to that? Yes, tough quiet period question. Tough quiet period question.
You know, M and A remains and will remain as a core part of our strategy. U. S. Markets are very strong today, right? I mean, there's enthusiasm in the U.
S. And I think the lower tax rate, more cash it is creating a strong U. S. Market. I'm going slightly different way.
I think we will as a business, or global business, but near 50% of our business is in the U. S. And we'll benefit from the strength of the U. S. Market over the long term.
We're a patient organization. We believe in our business system. We believe in how we value a business. We filter based on our strategic thesis. We filter on culture.
We filter on financial fit. And we'll be patient on if evaluations are slightly up. I'll note last year that it was an enthusiastic market as well. And we had a great year of M and A with Documentum, Covisint, guidance software. So our thesis, it doesn't change in up markets or down markets.
If the long term market has higher valuations, we'll attack the higher margins, right, and more efficiency in the business. We've done that in the past. So we're going to remain very consistent in our approach to M and A. U. S.
Market certainly is very strong today. I think business such as OpenText with strong exposure to the U. S. Market will benefit from that and we'll remain patient.
Yes, this question is for Ted. You talked about 3 organic strategies, maybe you can sort of elaborate on what's changed over the past year to sort of drive organic growth in the past 4 quarters here?
Well, I don't think there's been any cataclysmic change over the last years. I think we've been building towards this point. Kind of feels sometimes to me like we're emerging as an organization. And the kind of customer conversations that I described in my 3 growth strategies are happening more frequently. People are looking to us more people are looking to us as market leaders for insight.
More people are asking us to join them at the table while they discuss and strategize on digital disruption. More people are looking to consolidate steady progression of us being
who we are and
having the focus that we've had. Okay. So I think that's a steady progression of us being who we are and having the focus that we've had.
Mark, could you maybe talk a little bit about what you're most excited about for organic growth over the next 24 36 months? You've outlined a lot of ground today. What are the top priorities? And then
I've got a quick follow-up for Ted. Yes, sure thing. And maybe in the rule of 3, as human beings can remember 3 things. Number 1, I'd go cloud and all things cloud. As we talked about on the last call, we're talking here at the conference, I'll go number 1, cloud.
It's the ability to continue to grow our managed service business. It's bringing Release 16 into the hyperscalers, as I call them, Google, Azure, AWS and for all types of workloads. It can be disaster recovery. It can be backup. It can be in countries we're not in.
It could be customers who have enterprise wide agreements where we haven't been able to get to before, because now we can get to them, because we support the platform. So it's all things cloud, OT2, as a new public SaaS platform. The features that Muhi highlighted in OpenText core of workflow and simple applications. Box is not a company, it's a feature. And you just saw the 2 features, which is workflow and simple applications.
So I'd go, 1, cloud, cloud, cloud and all things cloud from hybrid workloads, managed services, OT2, file sync and share with confidence all the way through core. 2nd is security. Security is top of mind. You love all your children and you can never point out a special child because the other child goes, what about me? I love security.
And guidance is going to turn out to be one of the best acquisitions we've ever made for those who are at Enfuse and could see that just electricity that we had. And I think we're really figuring out how to unlock that complete value and we're using the immune system. The analogy that security is more like the immune system for business. So I'd say that's number 2, being able to bring more content management into the world, auto classification, to go find GDPR, HIPAA, personal information identifiers, electronic discovery, all those endpoint forensics. I'd say security is number 2.
And then 3, I'd go just go back to our heritage in our wheelhouse, which is content services, would be my 3rd element. It is an information infused future. And we're as Ted talked about, we're focused on marquee customers, the Global 10,000. These are companies have to scale up and they're going to differentiate. This is not where companies evaporate, right?
They're going to scale up, they're going to differentiate and their future is all about that information infused world. So I'd go the top three things I'm most excited about are cloud, cloud, security and our heritage and how we're reinventing the space around content services. You said you're going to have
a follow-up question from that.
The fast follow-up is beating on your point one on cloud. So Teder or Mark, since you've now changed and I know the firm you're agnostic to on prem or cloud, what are you seeing in the field? What are you incenting for sales people now that the product is refreshed? Is there an acceleration towards the cloud that we're hearing from talking to account reps and folks out there in the field? Thanks.
I'll take one part and then give the majority of that to Ted is our approach to comp equals behavior and field incentives equal behavior. And I'm just going to take the incentive part. We provide an AE with a basket of products and then a total annual value they need to bring back to the company. So our philosophy on comp and incenting and account executive has not changed. We give them a basket of products.
They know their customers better than we could back in Waterloo. So they know their customers the best. We give them a basket of products and an annual number to go make and they can make it up via license, professional services, they can make it up via cloud, but they get sort of one ACV to go after.
Thanks, Mark. And I was going to say the same thing. So the right down to the field rep level the same view at the top of OpenText is proliferated with our incentive schemes. In other words we're a hybrid company and we're very happy to offer the customer either or both. And so that means we've worked hard on that Mark, haven't we, to make sure that the rep and the field has that conversation equally with the customer, so that we can guide each other into the right solution for them.
Now that's the answer to that part of the question. The other part of the question was are we seeing a lot of demand out there? And yes, sure we are. So we're seeing a lot of growth on the contracts for managed services. We're seeing that from new customers who are coming to us directly into our cloud.
And we're also seeing that as I said in my presentation from our existing customers who are saying, I don't want to buy any more software. I'm really happy with what I'm using it for right now. But if you could take care of that in your cloud as a fully managed service so that I don't have to have it in my own data center, I don't have to worry about the security or any upgrading on it. If I could consume that as a service from you then I'd be willing to come and look at a new investment. And so we are generating the short answer is we're getting a lot of demand from customers both new who come straight to our cloud and from existing who are very interesting in us being the specialists in our products providing that as a service rather them having to learn how to do it themselves.
Okay. I thought just to highlight 2 things from your presentation. I thought GM was a great example. It is a great example of where a member of the Global 10,000 has a variety of our product platforms and we still have room to grow.
We do indeed.
And British American Tobacco, right, another great example where they have on prem solutions or managed services. Just 2 great examples of the global time talent.
Hi, Mark, now that you're offering the public cloud option, just curious in terms of maybe the customer feedback you're seeing as to what kind of uptake you think there would be in the future relative to customers opting for OpenText Managed Services versus the public cloud option? And then might some of your existing managed service customers migrate to a public cloud or it would be more for new workflows to consider doing that?
Yes, it's a great question. I mean, we'll know with time. So there are some solutions that are going to have an equivalent in the SaaS world and we've sort of made that call. So basic content services will have an equivalent in public SaaS. Archive will have an equivalent in public SaaS.
And some core digital asset management will have an equivalent in public SaaS. And we want to win the customer. We want to win the customer for life. And we can now provide the 3 options based on where a client is. I mean, I'll take one I'll take an example, the European Central Bank.
We run the information platform. We run part of that on prem. We run part of that as a managed service and they want to be able to collaborate with their member banks partly very securely and partly they're happy to do some of that communication in a public SaaS environment. So we've been focused on kind of completing the need, and I think we'll get customers who use portions in all three categories. But we're making product choices that say there will be a public SaaS equivalent.
And we'll have to decide over time if that's the only option. But right now, we're going to deliver in those 3 categories. We want to win a customer for life, regardless of what deployment options, if you will, that they pick. And we'll keep everyone updated along the way. I think ECB is a great example of being in 3 categories.
We I can think of a large life insurance company. I don't know if we can use their name publicly yet, but is running in our SaaS environment, but also running in our on prem environment, not yet in our managed services. So we'll track it along the way. It seems like partners have been a big focus at the conference. Can you talk a bit about where you're seeing the most interest from the partner network?
Sounds great. Thanks. Thanks, Jeff. Do you want me to take that, you want to take it?
We can go ahead, Aaron, if you like. We can go ahead, after you. Where do we see the most interest in the partner network? We know not all partners are the same. And that's why I did that slide with a list of the different types of partner.
And so depending on the different type the interest levels come from different areas. 1, a big part of the interest, which I feel very proud of is that we're engaged in a more strategic way with the large system integrators, the big guys. We had Accenture stage earlier today. And in a much more meaningful way than maybe with my history at OpenText we were 5 or 10 years ago. Seems like for this level of this breadth of enterprise information management it seems as though we're kind of the only players in the game as far as those larger system integrators are concerned.
They really it's not a nice to have, it's a must have, which is a partnership, a strategic partnership with OpenText. So that feels really good. And then to look at some of the other types of partners we've got, I'll just hit upon 2 more. One of them would be the OEM partners. Our technology has become more embeddable than it has before.
And we're finding that we're getting great value from partners who are using components of our platform embedded into their own offering. So I can't mention any names because I'm not sure which are appropriate to share. But for example, large software companies who embed certain parts of our content store or connectivity in and underneath the software offering that they have or service providers who use our tools to do the reporting and the customer service element. And so the OEM partners is a growth topic for us. Then the final type of partner I'd like to mention, which is kind of the smallest if you like, because it could go down to an individual, are those organizations, individuals who are developing on our stack.
And as you've seen from Ui's presentation and demonstration, that is something where we've made good headway over the last few years, but it's something we've been investing in. And with the new capabilities to provide a low code way of accessing our RESTful APIs, that's a very high level of interest here at the conference this year.
Hi, thanks for this. Just a quick clarification just on OT2, did I hear you mentioned that it was only going to run-in your cloud for this current release and is it going to be future releases where you sort of launch it on Azure, AWS or
whatnot or? No, OT2 runs in the OpenText Enterprise Cloud. Okay. Yes, native SaaS built into our cloud.
And then just one quick follow-up there. So on just on contract duration with the managed services and as well as the public cloud offering that you launch. Are you investing a lot more having to invest a lot more behind customer renewal and customer success to ensure that retention rates stay the same on the customer side relative to the on premise models you've had?
Well, I think we're
I wouldn't say
we're investing more. We've changed the way we're investing. We're taking advantage of a lot of the automation I mentioned so that we're able to keep our costs in line with what we'd expect.
Thanks. Just wanted to drill in a little bit if we could on the Documentum business. It's been 18 months, so you had a full cycle now of renewals within the base. And I just want to get some color around how the renewals have gone and the upsell and cross sell that you guys have been able to realize or
you think you're going to
be able to realize out of that customer base? Yes. Another interesting quiet period question. So, yes, let me stay maybe a bit more conceptual, right, on the question for a moment. Muy touched base on integrations that are going to go into the Documentum family.
OT2, many of those services have a heritage from Documentum. And in the installed base opportunity that Ted talked about, part of that is taking info archive from Documentum and bringing that into the installed base and bringing our extended ECM approach into the Documentum world. So as we've talked about, we've done an incredible job of taking a business of low margin and getting it to our corporate margin. We took a business that per their disclosures for multiple years was shrinking and we stabilized that business. And it's a business we believe we can grow from that new baseline.
There's a new UI on top of Documentum. We have CEM Discovery capture solutions we can bring or SAP and integration solutions we can bring. So I would just note based on what we've said previously, we've taken a low margin business and brought it to our corporate margin in 1 year. We've stabilized the business that was shrinking for multiple years based on their public disclosures. And we brought not just a compelling roadmap, but now actual product into the install base.
Customers like BHP Billiton that we mentioned on stage today is a Documentum customer. Parts of GM was a Documentum customer as well. So And we have time for one more
question.
And we have time for one more question.
Thanks. Just on when you joined with Reda Oxygen, one of the focuses is moving from point solutions to a platform. And then now with the product roadmap, there's those 2 parallel tracks now between OT2 and Release 16. Is that diagram probably not the best representation in that there'll be completely parallel, there'll be synergies between them? And if there aren't synergies between them, how do you manage the complexity of now having 2 roadmaps?
Yes, we show it as two lines, but there's lots of commonality between them, right? And I'm not sure how best to answer the question except to say that we have our Release 16 customers are going to continue to deploy on premise and that's what Release 16 is about. Release 16 as we've very successfully provided as a managed service and that managed service gets stronger with the containerization of that. I mean, we're bringing Google, AWS, the hyperscalers, Azure. There are common engines between the 2 and some new applications on top of that, which is OT2.
So we can now complete kind of deploy 3 ways. It's not the same functionality 3 ways, but we think it's representative of the workloads 3 ways, on prem, private cloud or a public SaaS. There are longer term questions, I mean longer term opportunities around is there a convergence, right, of that. And I see us kind of sharing a very robust core along the way that you can take content services on prem or you can take certain content services like share and collaborate within the cloud. One workflow engine that we'll deploy on premise or it will be the service that runs.
So maybe instead of just two lines, there should be a little gray area in there, a little shaded area that shows what we share in common. Workflow is common, capture is common. So maybe there should be a little shaded box in the visual to say what we share. We are not standing up and there's no customer demand for us to say, you must run only in the cloud or you must only run on premise. We still we can see customers wanting to deploy all three ways, hybrid still the path and maybe we should just have a little shaded box and highlight the things that are common between Release 16 and OT2, because there's a lot of things common.
Anything you want to add to that, Mike?
Yes. I'd love to add a couple of points. The first of which, the reason we kept two lines on the roadmap is to really highlight that we're not splitting our resources and our focus. There is a dedicated team on OT2 that is focused on a quarterly release cloud roadmap. There are dedicated team for every one of our platform being media management, content suite, Documentum that allow us to continue delivering the EP5, EP6, EP7 and beyond releases.
There will be 100 of touch point integration between OT2 and Release 16. I'll highlight 4 very important. We already have customers on OT2. In Q2 earlier this year, we closed a deal with an insurance company, Pacific Life. They chose OT2 as a platform and they chose the core to take a workload out of their Suite instance on premise and to expose it in the cloud to 3rd party insurance company that they partner and do business with.
They did not want to bring these customers, these 3rd party entities into their network, into their VPN or firewall tunneling, they wanted instead to expose cloud. We have another example, a customer that is using us for the exact same rule. They define through our rule engine to move content from Documentum D2 into core in the cloud leveraging OT2. The 3rd example is InfoArchive. InfoArchive will deliver micro services through the OT2 platform to do 2 very important thing of why InfoArchive is important to us.
1 is mainframe application decommissioning. Today many of our customers who are on legacy mainframe application are paying 1,000 of dollars every day for mainframe capacity and workloads. In the future, they will be easily able to decommission that mainframe and put an application in a read only mode on InfoArchive that give them that exact same level at onetenth of the cost. The last area is leveraging AppWorks, which can both build SaaS application or on premise. Me as a customer or any of our 120,000 customers can build an application to run internally for their employees like PeopleCenter, but then can build a survey application or a customer enhancement request application that could be deployed in the cloud and made publicly available to all of their customers and consumers.
So these are, for example, out of hundreds of integration touch points. There are touch points into Magellan, into security, into IoT. I showed an example of IoT touch point in there will be many of these. But the reason for the two line is just to highlight the separation. 1 is quarterly, 1 is every 6 months releases.
Great question. Yes, I think
a real time improvement might just be a little shaded box in the center, right, where we can show the common engines. But we think of heavy users of order management inside of SAP Oracle. That's an on prem solution. And content management and all the invoices and orders and business data we're managing, that's going to remain an on prem solution for a long time. But at the same time, Core as an embedded system talks to Salesforce.
It talks to Concur, talks to SuccessFactors, it talks to Eloqua, talks to DocuSign. So it's kind of picking the workload of where you want it to run, but we're going to share common engines being Release 16 and OT2. And through time, right, we'll make a decision if we lean one way or another based on customers. Wherever that arc kind of lands, we know we'll lean one way or another. But good suggestion to add a maybe a shaded box in the center.
Back to you, Mark. Yes. Okay. Thank you. First of all, thank you.
Thanks for spending time here at Enterprise World. I wrote a few summary notes. Number 1, we're focused on total growth. And I think that's reflected in our emphasis on annual recurring revenues. We're focused on improvement in scale of the business.
I think that's reflected in our AOM aspirations and we're focused on return. And that return is focused on our operating cash flow metric. And we have our whole filtering system for how we do acquisitions. But through all that filtering, it comes down to a yardstick, right, the measurement of ROIC that we measure every deal on. 2nd, I'd like to highlight is we have a proven business system, the OpenText Business System that we'll continue to talk about.
3rd is we're engaged in a fantastic, fantastic market. The $100,000,000,000 total addressable market as we've expanded our vision into the information company. These are marquee customers. This is a global 10,000. These are the scalars in their industry.
These are the differentiators in industry. They make long term buying decisions. The most profits in the software cloud world are in these marquee customers. The market and this is a relevant space. The space has actually gotten more relevant through time that we're in.
4th point I'll make is we have an exceptional leadership team. I could not be more proud of the leadership team that we've assembled to lead and run OpenText. And lastly, I hope you'll take away, we have a very strong roadmap from the Intelligent Connected Enterprise, Release 16, the developer, cloud, OT2, we have a compelling roadmap. And I look forward to continuing to engage together through time. So thank you.