Open Text Corp Investor Day

Jul 11, 2017 AM EDT
OTEX - Open Text Corp
Open Text Corp Investor Day
Jul 11, 2017 / 04:00PM GMT 

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Corporate Participants
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   *  Christopher James McGourlay
      Open Text Corporation - SVP of Global Technical Services
   *  Greg Secord
      Open Text Corporation - Vice-President of IR
   *  John Marshall Doolittle
      Open Text Corporation - CFO and EVP
   *  Mark J. Barrenechea
      Open Text Corporation - CEO, CTO and Non Independent Director
   *  Muhi S. Majzoub
      Open Text Corporation - EVP of Engineering

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Presentation
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 Greg Secord,  Open Text Corporation - Vice-President of IR   [1]
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 Hello. Thanks, everyone. Good afternoon. Thanks for joining us, OpenText 2017 Investor Day. For those of you that don't know me, I'm Greg Secord, and I lead the team of IR at OpenText. Also Gabby Sukman and Steve Tang are here from the team. If you could raise your hand so people know who you are, that would be great. Thanks.

 In the room today with us, besides the IR team, of course, are our executive participants. And we'll go through the agenda in a moment. And we're really excited to host the event this year in Toronto as part of Enterprise World. It is, by far, the largest gathering that we've ever had for Enterprise World and a record attendance, actually, for the conference itself and the Investor Day.

 So I'll skip through this for a second and go to the agenda. Today's agenda includes presentations by Mark Barrenechea, CEO and CTO; John Doolittle, our CFO; James McGourlay, our Senior VP of Customer Support -- or excuse me, Global Customer Services; and Muhi Majzoub, over here, EVP of Engineering and IT; followed by a Q&A session.

 We're going to end promptly at 2:00, but I invite you to stay in the conference, sit in on sessions. And you're welcome to talk to myself or other members of the IR team if you're looking at selecting different sessions that are here. Also, you're all invited to attend the reception this evening, and the reception starts at 5 p.m. upstairs in the main exhibit hall. And you'll be able to network with OpenText customers and partners at that reception this evening.

 Now I'd like to remind everybody that OpenText is currently in quiet period and pending the release of our fourth quarter fiscal 2017 results. Therefore, we will not be discussing any new forward-looking financial or target model information in today's presentations. In our question period, we'll focus on strategy and products.

 As noted, today's presentations are being recorded and are available for replay off the OpenText website. That information, plus the materials today, are in that Investor Relations section.

 Now having said that, I'll refer you to our safe harbor statement, which you can see on Slide 2 of the presentation. And bear with me while I read our disclaimer. During today's presentations, we may make statements related to the future performance of OpenText that contain forward-looking information. And while these forward-looking statements represent our current judgment, actual results could differ materially from a conclusion, 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 and specifically refer you to the risk factors contained in our Forms 10-K and 10-Q and in our other public filings.

 In addition, our discussion today may include certain non-GAAP financial measures and reconciliations of any non-GAAP financial measures to their most directly comparable GAAP measures may be found in our public filings and other materials, including in today's presentation, which, again, are available in the Investor Relations section of our website.

 And with that, I'd like to introduce our first presenter, Mark Barrenechea.

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [2]
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 Thank you. Hello, everyone. Can you hear me okay? Yes? A little formal, so I'll stand right here. So are you having a nice morning? And I am not Don Cherry, but I thought it would be a fun way to break the ice with Wayne this morning, so to speak. So I hope you enjoyed the morning. I certainly enjoyed it immensely.

 I'm going to hold the slides, if I can, so I don't have to look behind me. We thought we'd just start with a slide from our most recent investor presentation, which is looking back over the last 10 years and our growth in cash flow driven by what we call the OpenText business system. We announce our Q4 results, as Greg said, on August 3, and we won't be speaking about any financial -- any Q4 financial performance today. And over the last 10 years, we've experienced 24% cash flow CAGR, driven by acquisitions and by our execution.

 We also wanted to include our 20-year total shareholder return. When we compare ourselves to the NASDAQ and we've performed over -- benchmarked to ourselves, over 3,800%; and to the NASDAQ, near 500%.

 So let me just start with an overview. We view ourselves as a global leader in information management software and cloud services. And we rebranded the company today OpenText, The Information Company. And we'll use that moniker. We have a trademark on it, and we'll use that moniker going forward: OpenText, The Information Company.

 We are an enterprise software company. We service a marquee set of Fortune 10,000 businesses, and we highlight that for a variety of reasons. One, they have large IT spend. They solve global problems. We're able to in our market and in these accounts be able to garner especially solid margin and cash flow performance, and it's a marquee installed customer target for us.

 Ending March, our trailing 12-month sales is $2.1 billion, with approximately 41% of our sales outside of the Americas region. And obviously, Americas means from Hudson Bay to Tierra del Fuego. So outside of the U.S. is -- outside of the Americas is 41% of our sales. Listed on the NASDAQ and the Toronto Exchange. We have a long-term track record of creating significant value through our business system, a proven ability to deploy capital in value-enhancing acquisitions, high quality and expanding annual recurring revenue base. And you'll hear us put an emphasis on ARR, right, annual recurring revenue. And we don't have to think of Professional Services in that number, we just think of our Cloud Services and our maintenance business. And James is going to speak a bit today about the value drivers on that.

 We remain committed to expanding our adjusted operating income and we have a strong experienced management team, which we will highlight today.

 You saw this slide in the kickoff, we have approximately 500 -- 5,000 attendees; strong partner track yesterday, 400 partners. We added a new track to Enterprise World, which is this Thursday, which we call our Future Forward track. I'd expect this to -- it's our first time putting it on. I wouldn't be surprised if next year we have near 1,000 university students and developers attending this Future Forward track. It's really quite an impressive track that we've added to Enterprise World. 120 speakers, 5 great days. We had 1 robot on stage today, KUKA, as part of our strong theme of bringing machines into what we do at OpenText.

 Great set of customers we have just sprinkled throughout the event: KUKA, Bruce Power, BMO, Coca-Cola, J&J, AMEX, European Central Bank, Google, The Private Bank, are all doing talks on how they've deployed OpenText technology and how they're running their businesses on OpenText. And we have a great set of partners here as well, speaking to the same: Accenture; Deloitte; SAP; TCS, a stronger relationship that's come in through Documentum; E&Y; CGI; and Cap are all here doing similar talks and similar customer evangelism, if you will, at the event.

 This is an important slide for us because I think it really lays out the framework that we're going to continue to build on. As you heard in the keynote this morning, we've rebranded the business The Information Company, and we see a whole new way for our customers to connect with their information. If we think of the progress we've had on the OpenText Cloud over the last 5 years and building 5 big -- 4 big paths, with a fifth new one, from how customers want to deploy on premise, perhaps with managed services or in a third-party cloud, our value-added network, managed services and a new set of public SaaS applications. And on the cloud, it's all about us being able to complete that need for our customer. And the world is hybrid. It is neither all on-premise nor is it all on cloud. We continue to see public SaaS deployments, primarily at the mid-market. We're targeting selective workloads to integrate into the enterprise, and I am -- we couldn't be more pleased with our hybrid strategy in the cloud.

 We have our information platform that we talked about. And these are all the brilliant basics of being able to store, search, use facets, metadata, Discovery, Information Lifecycle Management and all that aspects of creating an information platform.

 We're well beyond a platform company. We're an apps company as well. And you saw one of those apps today, People Center. We have similar-type applications around invoicing; sales orders; engineering, construction, assets; project management; OpenText business center as well. And we laid that framework very nicely over the last few year and will continue to expand.

 We're in the business -- network business, which is business-to-business connectivity. It's ERP system talking to ERP system, ERP system talking to cloud, cloud talking to cloud and machine talking into cloud as well.

 Internet of Things we think is important. We think it's important, to use an expression from this morning, to be able to listen and act at the scale of IoT. Just like you -- we have automation around humans, we believe that there's a market for us to do the same for machines. And EP2 has been opened up to be able to get to a new level of scalability and interface and embeddability, and you saw an example of that of our Extended ECM talking to the KUKA cloud this morning. And that becomes more important.

 AI. We look at it very simply, information plus algorithm equals insight. And we're taking a very open systems approach to delivering AI. We've taken Actuate and Nstein technologies, plus a set of open-source technologies, Apache Spark, and a lot of our own code and created Magellan and being able to then have that seamlessly integrate into our own data models and apply concrete sets of algorithms to go into these information lakes. And the developer has become more important for us. If you go to developer.opentext.com, we publish a couple hundred new APIs to continue to grow the importance of our platform and continue to build out ecosystems. And so the developer is -- the enterprise developer is a very important market for us.

 I want to highlight the executive leadership team at OpenText. And these are not all -- this is not an org chart. This is the executive leadership team. We have Muhi Majzoub with us today, who runs all of engineering and IT. Muhi will be speaking. Obviously, you know John very well, our Chief Financial Officer; Gordon Davies, Chief Legal Officer and Corporate Development. Is Gordon with us today or...? I know he was at the conference. I see Michael here. Michael works for Gordon. Adam Howatson, our CMO; Dave Jamieson, our CIO; Leslie Sarauer, Head of HR; Ted Harrison, runs Enterprise Sales; George Schulze, runs Business Network Sales; James McGourlay, he'll be speaking today, who runs our Recurring Revenue Business; Prentiss Donohue, Professional Services; Gary Weiss, Discovery & Analytics; and Doug Parker, who runs Corporate Development. It is a -- I'm very proud of this team, and software is a team sport, as I always like to say. And I couldn't be more pleased with the senior leadership team that we have. They make it feel very easy for me and John, in a lot of ways, if you will.

 So I wanted to highlight -- I'm going to -- we're going to spend time on these kind of 5 areas today, and we framed it in a proven and scalable growth strategy. We'll start in operational excellence. We like using the term intelligent growth, which means new products, organic growth and global expansion. I'll touch on each one of those. That flows into adjusted operating income and operating cash flows, our 2 key barometers for the business. Flows back into disciplined capital deployment, which then feeds our strategic acquisitions that then goes back and feeds our operational excellence. And that's kind of the 5 big areas we wanted to touch base on today.

 So if I start on operational excellence, here are the highlights I'd like to call out. We've been building through the years a scalable and cost-effective centers in India, The Philippines and in Canada. And they've reached operational scale for us. And we'll continue to expand our processes, our ability to build code 24 hours a day, run operations 24 hours a day and do that with great talent pools and with great cost effectivity into these centers. And they are very impressive locations. If you ever get a chance to be in Hyderabad, Bangalore and Makati City or out in Waterloo with us, please work with Greg, we'd love to arrange a tour for you to see our facilities there. They are very impressive.

 We have a proven track record of adjusted operating margin expansion. I'm going to spend a little more time on that later.

 Under operational excellence, we still have opportunity to digitalize our own operations. We're asked -- John and I are asked, when we look at our 2020 aspirations and how do we continue to expand our operating performance, right, it's going to be through our talent and labor, where we hire people; it's going to be the discipline, great cost control; it's going to be our ability to automate the business. And we see continued opportunity to digitize our own business. Under our model, we empower our leaders with clear financial goals and systems to measure and monitor that performance. We're not a team of micromanagers. We may take a micro interest in something, and you should as a leader, but we're not micromanagers. We'll hand out a financial plan. We have systems and tools in place to monitor it and we go out and we empower our leadership.

 We believe in a pay-for-performance corporate framework, but we also balance that with developing the potential of our company, and we utilize systems internally. We're a big believer in Lean, Lean Six Sigma. And we've also put together in John's organization a global sourcing organization.

 So we have a lot of good topics to continue to build on our operational excellence in the coming years.

 In terms of intelligent growth, I'll start on -- I've highlighted 3 things: New products, organic growth and global expansion. So inside of intelligent growth, let me just start with new products. And I think the trends that we see are very aligned to our road map. This is a strong product conference for us. There are -- I believe that some years, the pendulum's on field execution; some years, the pendulum swings back to product cycle. You've got a big, strong product cycle, your attention goes to the sales organization, attention then moves back to the products, if you will. This is a strong product cycle for us that we're coming into. And you see that in our road map: Release 16, EP2 and EP3 on the horizon. Muhi is going to -- you'll see in the last slide of the prepared remarks before the appendix, you'll see Muhi's road map, where we're talking about EP2, EP3, EP4 and then BANFF, our business network; and moving to more self-service enablement and a strong eye to competition of companies like IBM, Sterling Commerce, Liaison, SPS Commerce and it's all around self-service enablement; AI and Magellan, which is now GA for us as of today. We think IoT is an interesting new market for us, and our announced and proposed acquisition of Covisint; our new AppWorks, which we're coming into the new year with; managed services via the cloud; and then the next-generation platform, BANFF. So it's a strong product cycle for us inside of intelligent growth.

 On organic growth, we think we're going to be able to -- and again, we're in our quiet period. So we think we're going to be able to -- so I'm going to speak a little more conceptually behind organic growth than with specific numbers -- that, one, that we're going to have opportunities to leverage our new brand as well as B2B digital practices that we're deploying through our marketing services on opentext.com and other social media.

 We're also looking to increase account coverage through just how we allocate accounts to our sales force. Capacity additions, I'm not going to talk about a specific number, but our sales force is expanding as we get into fiscal '18, as well as our global partner community. And I'll kind of go back to just my notes on Slide 9 who are here at the conference: Accenture, Deloitte, TCS, E&Y, CGI and Capgemini, the global system implementers, or GSIs, we're spending more time with to help us get to places that we can't get to, to get to -- they are transformative -- they drive transformative opportunities inside of accounts. We want to be the technology provider to them, and we see this as an organic growth opportunity.

 We also are looking to promote in our install base specific programs. We talk about cross-selling. And we have specific programs in place as we come into our new fiscal year around these areas. One is Information Lifecycle Management or InfoArchive. We see this as a strong opportunity for us. We're not using a spray-and-pray strategy of here are 30 things, right, dear account executive or customer. We're going in laser-focused on these items here, so Information Lifecycle Management via InfoArchive; customer experience management, our new TeamSite and Digital Asset Management solutions; Discovery, Axcelerate and Perceptiv through Recommind; and very focused on competitive replacements, specifically Lexmark and IBM, Lexmark and IBM. And on IBM, we have a whole kind of playbook around what we can do and they can't do across FileNet, IBM Sterling Commerce, IBM Watson, as well as their CEM portfolio.

 We're also in the organic growth side looking at vertical capabilities and expertise, specifically in financial services and some of these include the Documentum applications, life sciences from Documentum as well; regulated industries, you heard Bruce Power this morning; manufacturing; health care; auto; and transportation. So we see specific opportunities in those verticals.

 And we're also expanding the definition of EIM to include AI and IoT as we come into this fiscal year.

 So that is kind of our push on organic as we come into fiscal '18. So intelligent growth: New products, organic growth, global expansion.

 We thought we'd just show a view of the company by major geo. And at the end of fiscal '16, Americas slightly over $1 billion in revenue and approximately 5,300 employees; Europe, Middle East and Africa, $611 million in revenue or approximately 2,400 employees; and you can see the scale of our workforce at the end of fiscal '16 in Asia Pacific and Japan, or APJ, $164 million in revenue with approximately 3,500 employees. And this shows our centers of excellence. This includes India and Philippines for us. So it's -- whereas we have revenue opportunity, of course, we have talent opportunity as well as we're scaling the company.

 So again, 42% of sales outside of the Americas. We have a significant opportunity in each of our geographies. We increased our non-Americas sales from $572 million to $775 million, over 35% over these 5 years. Again, all the geos have opportunity, but I wanted to highlight the non-Americas opportunity here. And again, we have key operations in Canada, U.S., Brazil, U.K., Germany, France, India, Philippines, Australia and Japan. If you ask where Mark is any given day, it may be in one of these countries, because this is where we have the most operations, and for the most part, the most opportunity. Direct sales in 30 countries, and obviously, we talked about our global partners a bit helping us expand that opportunity. GSI is an important program for us as we come into the year.

 I'd like to talk about sort of that operational excellence, intelligent growth and then AOI and operating cash flow. Again, we wanted to put our 10-year charts up. We'll update these when we complete and announce the fiscal year '17. So these are only through fiscal '16. And we look at the long-term trends of our business. We're very proud of our adjusted operating margin expansion over the last 10 years, 1,600 bp improvement, you can see from 18% to 34%. And we continue to have opportunity, long-term opportunity, on adjusted operating margin. We continue to have opportunity to expand this, so that we have that significant long-term opportunity. I don't want to put a number on it today. We're not intending to put a number on it today, but John and I are very comfortable to say we have significant long-term opportunity to increase adjusted operating margin.

 Obviously, we've expanded our margins while reinvesting in the business, and the 24% OCF CAGR over the last 10 years. And part of the challenge we had in '15 to '16 was the big currency headwind for us in that year. So again, come August 3, we will update those.

 So feeding into strategic acquisitions, M&A is our leading growth driver, complemented by organic growth initiatives. A proven approach to M&A, with 56 announced acquisitions, most recently announced, Covisint. We look at this as a $35 billion market as we define it. And the underpinnings of our strategic thesis, we're not a holding company. We have a strategic market thesis that leads us to being themed by The Information Company. And we think this is a lesson we've learned from or the large conglos have taken from us, the conglomerates, that you need that strategic thesis. And this is our strong thesis.

 Part of our recipe in the OpenText business system is integration. Integration, integration, integration. It will allow our model to scale through the years. It allows us to deliver the value that we've seen in those -- in the AOM and OCF charts. We'll integrate our operations. We'll integrate our engineering and our innovation and we'll integrate our go-to-market. And again, M&A will be -- is our leading growth driver, though complemented with organic growth.

 You've seen us accelerate our pace of acquisitions over the last 2 years. And I'd like to note that fiscal '18, right, which started July 1, fiscal '18, will be the first full year of benefit -- first full year of benefit from approximately $2.4 billion in capital deployed across ECD, HP CEM (sic) [HP CCM], HP CEM, ANX and Recommind. We have not yet had a full fiscal year of benefit for this $2.5 billion of capital deployed. It will be our first full year.

 We wanted to put together a visual chart for ECD. We'll obviously get into more detail come August 3. But look, we view this as a compelling acquisition. Worldwide leader in content services, OpenText plus ECD, worldwide leader. And when we look at being able to go from archives to active information lakes, the applications that are required to digitalize a company, if you heard my talk this morning, documents remain at the heart of the world. And what manages a document? Content services. And that's why we felt this was a pretty strategic acquisition for us. And together, we are the worldwide leader.

 We think there are new opportunities to capture, specifically in Information Lifecycle Management, brings 5,000 marquee customers, 2,000 information experts, employees and new relationships in life sciences, health care, with GSIs and alliances.

 We wanted to kind of map out visually by quarter. We've obviously finished Q1. We'll report Q2 early August. And these are in calendar. So it's calendar, not fiscal. And then calendar Q3, which we're in right now, then obviously the last 90 days and then calendar year '18.

 So we're going to be focused on scaling performance through Q2, Q3 and Q4. In terms of adjusted operating margin, the business went in our model, right, and first reported was low teens. We will in the first 4 quarters bring it to the OpenText target model within the first 12 months. And John, the target margin is 32 to 34, off the top of my head from the Investor Day? 30 to 34. And so -- and we'll be able to take a low-teens business and bring it to our 30 to 34 target model within 12 months. And that's part of our business system, right? It's something we're enormously proud, that we can bring in companies of that lower performance, and through our management system, our integration, our cost control, our labor markets, the way we go to market to bring those companies to that operating performance in that short amount of time.

 If I think of our activities in Q1, we obviously closed the transaction. We initiated the ECD restructuring and we kicked off our TSA programs. And as we talked about, the expenses on TSA were front loaded in this particular deal. This is our first full quarter. Last quarter was the first full quarter inside of -- just the first full quarter that we've had. [Q2] and current quarter, we've kicked off our fiscal year. So we issued new comp plans and programs for the company. And so ECD is now part of that program. Our people integration is complete this quarter, and we will talk about the new products that we're bringing to market.

 In the last 90 days of the calendar year, integration will be substantially complete and on our target model. And as we get into calendar year '18, it will be our first full calendar year of operating the asset. We will begin to look beyond the initial synergies, and the pace of innovation will increase. So we thought we'd just kind of map it out by 90-day chunks over the calendar year. And I'm sure that will create some discussion for our Q&A.

 So in summary, on my part, and then I'll hand it over to John. We have a proven and scalable growth strategy and as we outlined, from our operating excellence to intelligent growth to adjusted operating income and OCF to capital -- disciplined capital allocation back to strategic M&A, in that sort of virtuous cycle in those 5 areas. We're seeing an increased interest in our solutions. M&A continues to be the leading growth driver for our business. If we look conceptually at our top organic opportunities, they are in our install base to expand, upgrades, the specific cross-sells that we highlighted, Information Lifecycle Management, CEM, Discovery and new markets and new verticals that are -- that we can get through with our global partners. AI and IoT, expands that market opportunity. How many folks saw the Magellan demo this morning, right? Very good. Did you like it? I know it's not a feedback group. But I know it's not a feedback group, but I thought it was pretty good. So I see some smiles here. So we're trying to make it easy to understand and easy to integrate. And our approach of information plus algorithm equals insight. And we've got to make software easy to use and deploy, and I think we did that today. And I realize it's not a feedback group, but I thought the demo was pretty good. I'm very proud of the experienced leadership team that we have in place, and they're lined up to execute. And we're going to keep staying focused on annual recurring revenue and adjusted operating income and adjusted operating cash flow as the key barometers of the business.

 So those are my introductory remarks, and let me hand it over to John Doolittle to provide an update. Thank you. John?

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 John Marshall Doolittle,  Open Text Corporation - CFO and EVP   [3]
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 Thank you, Mark. Okay, good afternoon, everybody. Can everybody hear me okay? Loud and clear?



 So I have to start with the fact that I'm a little bit depressed this afternoon. I'm a little bit depressed. Does everybody know who Peter Mansbridge is? Well, Peter Mansbridge is 70 years old, and he's a very handsome fellow, by the way. But he's 70 years old and he's really gray and he's wrinkled and he's just retired as the Head Anchor of CBC News after 30 years.

 So I get a chance to shake Wayne Gretzky's hand. I've never met Wayne before. I'm kind of nervous. So I walk out to him, my palms are all sweaty. I shake his hand. He looks at me, and he says, "You look exactly like Peter Mansbridge." And then I thought, "Oh, (expletive). 70 years old. Maybe I've got to get a toupee or something."

 Anyway, it's great to be here today, and Greg has got me on a real short list this afternoon because we're in quiet period. So I get 5 or so minutes. But I do get to talk about my 2 favorite topics, and those 2 are liquidity in the balance sheet and then capital allocation, which we like to talk about a lot.

 So starting at the top. And Mark spent a lot of time talking about operating cash flow. But that is the bedrock of this business from a financial point of view and superior earnings quality and working capital management. I'm very proud of the work that the teams have done on working capital management and improving our DSOs and extending out our payables so we've got much better, better working capital cycle than we did a few years ago.

 If you look at where we finished at the end of March, we had cash and short-term investments of just over $450 million, undrawn revolver of $225 million. So we had total available liquidity of close to $700 million. And our debt was at $2.6 billion.

 So as I kind of stand back and look at this after raising as much capital as we did through the M&A process, we've ended up with a very strong -- continue to have a very strong balance sheet and liquidity profile.

 Our next debt repayment is not till 2021. If I kind of look at our mix of debt in terms of fixed, floating, maturity profile and that sort of thing, I'm very happy with the way it's structured.

 Our net leverage ratio is about 2.5:1. That's just over 3 on a gross basis, well within our financial covenant. But we like to try and keep our gross leverage basis within 3x. That's kind of a threshold we've talked about. We did go slightly over that for the ECD acquisition, with a view to bringing it back down over the coming quarters.

 And credit ratings are really important to us, and we get a high BB credit rating. We want to maintain that credit rating. We've got investment-grade covenants. And all of that is about providing the company flexibility. So even after all of the acquisition activity, we continue to have strong liquidity profile and balance sheet.

 And in terms of capital allocation, this is a continuation in terms of the balance sheet comment. Maintaining financial flexibility is really the underlying objective of our capital allocation philosophy. So maintaining access to capital, preserving ratings, obviously raising debt at a reasonable cost. We've got a low CapEx threshold on the business, about $70 million over the last 12 months. I talked about the working capital improvements. We've increased dividends by 53% since we initiated the dividend in 2013, and we declared our last dividend on May 5.

 So our capital allocation philosophy is all about maintaining a balanced approach and taking into consideration all stakeholders, debtholders, equityholders and the like. You've seen us at times buy back shares when we considered our share price undervalued. So it's all about a balanced capital approach.

 And I'm happy to take questions later. That's the end of my leash, Greg, and I'll turn it over to James McGourlay. Thanks, everybody.

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 Christopher James McGourlay,  Open Text Corporation - SVP of Global Technical Services   [4]
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 I too will refer to the notes instead of standing over there. So I am responsible for Global Customer Services at OpenText. And as you can imagine, the mission of the Customer Services organization is to deliver world-class technical expertise so our customers can utilize our software. That's our stated mission.

 But our stated goals, I think, are the interesting piece here. Our main goal is to drive annual recurring revenue and margin expansion at OpenText. And how do we do that? Well, increased adoption, increasing the adoption of customers using our software applications and services; accelerated time to revenue, making sure that we're able to get our customers using those applications or our Cloud Services very quickly; and improved customer experience, making sure that they continue to buy and increase their purchases from OpenText.

 One of the things that we don't have on this list is actually moving from a renewal to expanding the sale. And that's one of the things we're focused on this year, is expanding that selling operation through the organization, and it becomes a big part of what this team is doing.

 So how do we do it or who do we have to do it? We've got a team of 2,400 technical experts -- or sorry, experts -- EIM experts, technical support, a recurring revenue team, our cloud onboarding team and our customer experience team.

 And each of those groups plays a specific part in actually making sure that we're able to renew or make -- expand our selling operations with our customers. Our newest addition there is really our customer experience team, where we've taken some of the folks that we've acquired along with ECD and build out a larger team that's focused on improving our customer experience and providing things along the lines of our Top 100 Platinum customer program that we've announced here at OpenText. So we're taking our top customers, we're looking at how we're servicing those customers, looking at how we can use, bring analytics in and really start to get closer in with those customers. So it's a big effort for us, and a new thing that we've kicked off here.

 So we operate around a set of best practices. We are really good -- when we do acquisitions, we can go in and we can look at the renewals operation, that ongoing selling operation, and focus in and get the metrics and figure out where they're doing well, where they're not doing so well and how we pull them on to our model.

 Looking at pricing and packaging, what offerings do you have for your customers? Are you meeting their pain points? Are you offering additional things on top of standard maintenance or on top of a standard service that the customers might need to purchase? So we can go through and we do that. We focus on making sure that those are best-in-class, premium pricing for additional services. And clear contracting, one of the things that we do really well is that renewal process, so making sure that we're able to take our customers from that initial sale, and then through to next year. We make sure that we have clear contracting in place.

 And that kind of falls into the next one, which is our renewal process, right, are clearly defined through playbooks and standard operating procedures, right? All of our renewals reps, all of our sales -- our recurring revenue reps have actual playbooks that they can reference regarding different issues, different opportunities and how we can actually maximize that.

 And then measurement. Analytics is playing a bigger and bigger part in every industry, and we're no exemption. So we're maximizing the use of analytics, going through -- see how we're performing, see where we can improve, see what things are -- where we may have an issue and what we need to do about it.

 Customer success. Customer experience team, customer success, are really synonymous. Focused on that customer life cycle, seeing where we are, and our Elite Program that I spoke about earlier.

 Organizational enablers. Really making sure that we're able to focus on our customers and make sure that we're being successful as an organization. Between myself, our team and Prentiss Donohue and his Professional Services team, we go out and actually get those customers off the ground and get them running and get the applications and any additional onboarding and drive adoption. And we work very closely together to make sure that we know exactly where we are in the process with our customers, and where our customers are in the process with us so that we can make sure they're successful.

 And Voice of the Customer Program, right? We interview our customers twice a year. We run a relationship survey or an NPS survey to make sure that our customers are providing us feedback and that we're listening. We then take that and go through the organization, work with Muhi and his organization, with Prentiss, with John and finance and billing and all those things. Any area in the organization that customers tell us we need to focus on, we're focusing on that. So the NPS and that relationship survey becomes a really important part for us.

 Analytics. As I said, analytics is something that every organization is using, and we're focused on analytics. We've seen a few examples of the things you can do today. And when you consider the size of the customer base we have, and we've got 120,000 customers that we're actively chasing and working with, you need to be able to analyze those using systems in order to make sure that you understand exactly what's going on, whether it's technical support issues, whether it's PS adoption issues -- opportunities. Are customers going quiet on you? Are they talking to you? Are there big projects going on at the customer base that perhaps we could plug into? And we can do all that using analytics. And it really allows us to see where we are.

 And then, if you look at the analytics aspect of performance of the team, you can dig into that as well and see, as I mentioned, see exactly where we are. It's a real great opportunity for us. So those are the best practices that we have.

 It's packaging and pricing, it's the renewals process, it's customer success, organizational enablers and analytics. And as we go through acquisitions, and as we grow -- continue to grow the team, those are things that we focus on automatically as we -- well, I should say systematically, not automatically, as we bring an organization onboard. Okay?

 So key performance indicators. What types of things are we looking at? All right, so gross margin, 88% for FY '16. Renewal rate for CS in the low 90s. Our customer satisfaction is always above 92%. It fluctuates a bit, but it's always above 92%. Our Net Promoter Score, is interestingly enough has gone up 39 points over the last 3 years by focusing on making -- on listening to our customers and making those improvements that I talked about across the organization. So we're continuing to focus on that. This is a big jump, and I think we've got more to come there.

 And our CS revenue growth, 33% over the -- since FY '11, which is a rather significant number, and especially considering the margins that we drive that drives back into the bottom line for the organization. So these are the key things that we're focused on as a CS organization, all right?

 In summary, right, number one, continued annual revenue -- annual recurring revenue expansion and margin improvement. We're good at that. We're focused on that, and we're going to continue to build those out. We're focused on improving and refining OpenText recurring revenue best practices. We're not saying that there's no opportunity for improvement. We're focused on those things and making sure that we're continuing to build on them. Our 5 KPIs drive CS performance. That's what we focus on, on a regular basis. Those 5 things, top of mind: Margin, renewal rate, customer satisfaction, Net Promoter Score and revenue. And number four, long-term initiatives through further deployment of analytics, extending from renewals to extending the sale and strong financial performance is always key for us in CS.

 Thank you. With that, I'm going to hand over to my friend and colleague, Muhi Majzoub.

------------------------------
 Muhi S. Majzoub,  Open Text Corporation - EVP of Engineering   [5]
------------------------------
 Thank you. Good afternoon, and welcome. Can you hear me okay? Great.

 Let me see. Where do I start? This morning at keynote, I'm sitting smiling for 2 reasons. I could not have been more blessed to watch how our products are coming together. But the more important piece, I just completed last month my 5th year at OpenText. And the best part about sitting in Mark's keynote this morning was recognizing that the vision and strategy that I discussed with Mark during the interview cycle in April of 2012 come together.

 Let me tell you what I mean by that. You see on this slide that Mark shared earlier, we've grown EIM. And let me give you a little bit of history and walk you through how our vision has come together.

 In 2012, when we stood on stage in front of our customers and partners, we had platforms and we had applications. And over the course of the last 5 years, we've added analytics. We've added our business network with the GXS acquisition. We've added the developer with the acquisition of Cordys, where we innovated on top of that to deliver our low code platform and our mobile gateway. And you're seeing us now with the announcement of Covisint, add IoT.

 So let me tell you a little bit more detail about and let's dive deeper into any of the areas and each and every one of them.

 If you start by looking at applications, 2012, yes, we had Extended ECM for SAP built on ABAP code that we had to go and invest a lot of effort in keeping ABAP technology moving forward.

 Today, Extended ECM has come a long way to be an application development platform that allow any of our products to integrate and deliver workspace capability and deliver a lot of intelligence to our customers who use SAP, SuccessFactors, hybris; that use Salesforce for sales and services; that use Oracle E-business Suite.

 And the vision is unlimited for the future. We can integrate the same technology into Workday. We can integrate the same technology into Infor. And any other new business application that become relevant to our customers, and based on their demand, we could deliver that integration with ease because Extended ECM has become a piece of code for us that we can integrate very quickly. It took us under 6 months to deliver the Salesforce integration, and we already have customers up and running on that technology.

 But you're also seeing us develop new applications that are related to business network, because we see business network supporting some of the largest industries today. We have the largest customers, and Mark highlighted on several of these large customers this morning in his keynote. Nestlé is one example. Bank of Montréal is another. Citibank, Bank of America, Dell Computers, Toyota Motors, VW Motors, many others. Every one of these large enterprises, global companies, depend on the business network to push every transaction from an invoice to a statement, to a product catalog. They provide product communities to all of their 600-plus trading partners that are part of our network.

 You've seen us grow a third level of application, which are the individual applications that just add value to customers. You saw an example of People Center. People Center is a great example of what we have done with our Process Suite platform to start building low code applications on top of these solutions.

 Let's look at platforms. You've seen us on, for the last 5 years, for every one of our platform, stand every year on stage, make commitment to what we plan on doing, whether it's rewriting the UI to give you HTML5 adaptive responsive, whether that is growing our platform from our performance and scalability, whether it's taking some of the workload to the cloud. Because as Mark highlighted, we understand the world is going to remain hybrid for many years to come. And based on customer feedback, we are committed to remain to enhance and innovate on top of our on-premise platform. We are committed and doing a lot of investment into taking our managed services offering and allow much faster implementations so every one of our platform will become Docker-enabled, where a process that used to take us 1 to 2 months will now take us 3 hours to a day to implement Content Suite or Media Management or any of our other platform-leveraging technology like Docker.

 And our Cloud Services team is working, and we have some tests that we have done and we are currently working with several customers to take that forward.

 But we also continue to commit to deliver deeper functionality in every one of the platforms.

 The business network, as I highlighted earlier, is powering the largest enterprises today in the world.

 Securely, a lot of things. I'll start with infrastructure, as I own IT for OpenText, and the CIO and our corporate and commercial IT are colleagues that work with me. The first thing is our global infrastructure, 41 data centers around the globe to support our customers. OpenText was one of the first vendor -- in fact, we were the first vendor to provide safe harbor law compliance and Eurozone privacy compliance by delivering 2 data centers in EMEA that are located in the U.K. in Woking and in the Netherlands in Amstelveen. These data centers are secure and only touched by Euro citizens. The data remains in the Eurozone.

 We are positioned very successfully should Brexit takes place and the U.K. move away from the Eurozone. Very simple. You create another data center in the U.K., in the island, and you create -- and we already have other data centers in Munich and Frankfurt that we could leverage.

 So infrastructure is very important. Our data centers are ISO 27001 compliant, SHA compliant, POODLE-1 -- I mean, SHA-1 and SHA-2 compliant and POODLE compliant. And we are proud of the infrastructure that has allowed us to deliver and continue to do global services to billions of transactions to some of the largest companies around the world.

 But infrastructure is not enough. You need to add value. That's where our active applications and our trading grid come in place. From our fax services to notification to SMS, all of that is very important. How you deliver analytics and intelligence for a company like CVS that uses us for all of their faxing capability and push millions in faxes through our network every month. How do you deliver SMS messaging to an airline company that uses our solution to communicate to all of their travelers globally about flight delays and other examples?

 And the trading grid. Being able to give a company as Nestlé an analytics engine that allow them to see the world on a map and drill down and drill up as they please to look at every country, every process, every business unit, every division around the globe. And Nestlé has a couple of hundred divisions that operate independently to run different businesses for them, some are in India only, some are in the Middle East only, some are in Europe, some are country-specific. So all of that, being able to give them that intelligence and a modern solution that is fully integrated into our analytics engine and into Magellan, gives customers a lot of capabilities in the trading grid.

 Internet of Things, or like I refer to it, as Internet of Anything. Because in reality, in the next 5 to 10 years, everything around us in devices will be IP-addressable. From your homes, to your businesses at small, medium or large companies, everything will become IP-addressable. The document will remain and information will remain at the heart of that innovation.

 And being able, through our acquisition of Covisint, when that's complete, being able to bring Covisint and integrate it into the business network, integrate it into all the platform that today houses millions and billions of content objects for companies in every industry, is an amazing thing for us. Being able to integrate that into Magellan, and I'll tell you a little bit more about Magellan in the next slide. Being able to integrate IoT into Magellan and extract intelligence about these different devices and these different data collections that are happening in different industries will be amazing for us.

 But let's talk Magellan for a little bit. And I hope every one of you saw the demo, and I would encourage you, if you haven't, go to our Magellan demo pod area and have the product managers walk you through the same demo and show you this real application.

 But let me give you a little bit of history that also proves that the journey OpenText has been on is planned properly. We don't acquire companies to take maintenance revenue. We acquire companies because part of our vision is a strategy of how we can build on top of them.

 Seven years ago, in October of 2010, OpenText acquired Nstein Technologies. Nstein brought to us semantic navigation, semantic analytics and content analytics. They were a group of scientists in Montréal, Canada that knew how to take unstructured data in a document, put it through an engine, through a feeder, and out comes a nice report that extracted context of the document; extracted the tone of the document, negative or positive; the topic of the document, it's politically motivated, it's environmentally motivated, it's financially motivated, about the housing crises or stock market or any of the above. And it was able to do that. And we have leveraged these tools for the last 7 years, and we've innovated on top of them.

 And today, you saw an example of the Magellan Notebook, which is one of the innovations that came on top of the Nstein technology, and integrate it into Actuate. So Actuate is the second piece of the puzzle. And together, between Nstein and Actuate, Actuate had a product that they acquired a company called Quiterian in Barcelona, Spain 2 years before OpenText acquired Actuate. And Quiterian had a big data analytics that ran on a proprietary database called FastDB, and FastDB was a columnar database. I could drag and drop millions or 500 million row from a CRM sales table into Quiterian, and I could do predictive analytics.

 We took that and modernized that to be running on Hadoop Spark Apache. Why? Because we understand with IoT, we are going to manage data at the Internet scale. Million rows are no longer going to be a lot. Billion rows will no longer be a lot, and we need to be able to support that.

 So we built connectors, 50-plus production connectors that could connect to 3 categories of information. Structured data that sits in any database, relational or no SQL: SQL Server, Oracle, MySQL, Postgres; no SQL databases MongoDB, Cassandra, others. That's the first category. We can extract data from any of these sources.

 The second thing, category, is unstructured data. In any data source, FileNet, SharePoint, Content Suite, Documentum D2, eDOCS, iManage from HP, most important, the file server, which not too many people talk about. But if you talk to any CIO, they will tell you millions of documents sit undiscovered in file servers. OpenText can discover them and can extract all the knowledge needed for Magellan to do something with that data.

 Archive Center, InfoArchive, HP iManage and many, many other, and we've opened up our connector platform that customers and partners can build their own connectors to new data sources.

 And the third category of information is connectors that could go on the public web. Twitter, Facebook, LinkedIn, any HTTP URL you could give it, secure or unsecure. If it's a secure URL, the only thing you have to provide is authentication to access the data. If it's a public URL, you can access the feed automatically on port 80. And we are able to take all of that information, bring it in. We are able to use our low code to build quick applications on top of it. People Center is one example that we showed, and there are many projects that we're starting to right now research and very quickly get funded and start building them for new applications to be announced later in the Innovation Tour or next year back on stage at Enterprise World. And then bringing our analytics and predictive engine from Magellan to sit on top of that and analyze the data as you saw in the demos this morning on stage. How much time do I have, by the way? I could talk all day.

 Most important, as Mark highlighted, being able to bring all of that information, being able to build algorithms that are open, and that's really what we see as our biggest differentiators in Magellan. And let me share with you few things. If you compare us to IBM Watson, the first thing I would look for as an engineer is I need to know how much skills can I go in the market on globally to staff a 100-people team, a 500-people team, a 1,000-people team, or more if I need to? So I did a research couple of weeks back. I decided to go to 10, 15 universities, top universities, so Stanford, Yale, MIT, Harvard, UC Berkeley, UCLA, few others, USC, and I picked a couple of universities in India, couple of universities in Munich, just to be fair and try to get a summary view, if you will. And I looked at their class schedule. None of them teaches assembly, none of them teaches mainframe, which are the skills you need to build any Watson application or any Watson algorithm. We don't. You saw this morning in the Magellan Notebook, Python. It could have easily been Scala, it could have been R, it could be any other language that we choose to add to that Notebook in the future. It's open. In the future, we can pick Ruby on Rails, if that becomes a demand from customers. We could go back in history and pick PERL if you want to, if customer says, "I have 10,000 scripts of PERL." We could build integration to the Magellan Notebook, to build algorithm in any potential language, MLlib, you saw an example of MLlib on stage today.

 Second differentiator. So the skills you compare, how many people can I get that know assembly and mainframe versus how many people that know Python, R, MLlib, Ruby on Rails, Java, all of that? And you could see the scale difference. Second thing, you heard Mark state and showed an example of hardware, 1/6 of the cost. I am a geek, so I love to build my own servers at home as my playground in my home office. I went to Fry's Electronics, I pick up an x86 motherboard, a processor, a chassis with pretty lights, if it's a gaming console or something I'm building, and I go build my own chassis. You could potentially build your own chassis and your own hardware to run Magellan on. It's open. There are 0 restriction on anything. It's standard x86.

 Third thing, unlimited scalability, Hadoop and Spark. Fourth thing, part of our focus for Magellan is to integrate it to every one of our platform. And make no mistake, every time you see us speak publicly in front of you, there will be example of a new OpenText platform that is now integrated and delivering value to our customers through Magellan, including bringing customer on stage to highlight their successes and give you real-world use cases of how that is used. And at the end, being able to extract the intelligence through the Magellan predictive analytics engine and the operational and dashboard tools will be unlimited in how much value we can add to our customers.

 AppWorks is very important for us. We have committed for AppWorks for the last 2 years, and we've been quietly sitting in our corner labs and building code, and we believe AppWorks is an amazing tool. You saw the example of People Center. 100% of People Center was built on the low-code application. 100%, 5 engineers, under 4 months. Mark gave us that challenge in December of last year, December of '16. We were sitting, the final year before we break for holiday for Christmas and New Year, Mark said, "Prove to me low code will work." Here's, let's pick an application. So we drew on the board several example of applications we can go and build. Mark pointed and say, "Employees. It looks like a lot -- a very important object for all of our customers, that all of our customers have employees. Go build me an HR onboarding, recruiting, hiring module using the low code and come show it to me when you're ready." We showed the first draft of the code in late January to Mark. We came back in mid-March and said, "We're done." Complete module, end-to-end, from recruiting to building [LAN] pages, it could be deployed on-premise. It could be deployed hybrid, if you choose to. It could be deployed as a SaaS, multi-tenant public cloud and everything in between. And I could tell you, this is going to be the standard. The CIO and my corporate application development team, they already know that's what we will use to build internally. Five people, 3 months, if I could deliver end-to-end an application like you saw on stage today, that's a positive thing for me. That's an efficiency. I could build and spin more applications that add value to our customers much quicker with the same number of resources. And the best part about it, I don't need any hardcore advanced engineers, I have 3,300 of them. But I can have another 1,000 business analysts building applications for specific industries in my India development center in Hyderabad and Bangalore. And that's we're low code. And at a push button, AppWorks gateway will publish it -- that application to be a mobile iOS, Android. And as other mobile platform becomes more used like Windows 10, if that mobile platform becomes real and more available and we see customer demand about it, we will build that integration through the AppWorks gateway.

 Road map is very simple. We are very predictable engineering organization. If you are -- if I have the pleasure of having you during my keynote tomorrow to our customers, you will see for the last 5 years, I've started my presentation saying, "Last year, I promised you the following. They are all delivered, they are all real, you could buy these products, you could download them today off our knowledge center." It will be no different tomorrow. I will give a score card of how well we did to the commitment I gave our customers last year.

 BANFF. We are starting our project BANFF, and it is committed to remain a hybrid solution that will allow us to build faster application, we'll have integration to Magellan, we'll run on-premise as a managed service or in the cloud. And as a managed service, as Mark highlighted, we are doubling down. I want to implement a managed service customer in under a week from start to finish. That includes all the configuration, that includes all the definition, that includes setting up the hardware and infrastructure and delivering a system that the customer can log in and start testing Content Suite or start testing Media Management or Documentum D2 or any of our platform.

 And lastly, you will see Magellan deeper integration into other areas of the product. But we have, if you look, EP3. We just delivered EP2 at the end of April. EP3 is committed and on target for end of October, and you should expect a press release from us that EP3 is ready end of October. EP4 is committed and on target end of April next year 2018. And then after that, in 2019, you can expect a big announcement for BANFF.

 In summary, of course, you could see the points on the slide, but I'm going to share something that I've shared every time in any public. My commitment to Mark and our ELT colleagues is every cent, every penny spent in engineering, research and development and execution work is work that will go to add value to customers. I truly believe one of the biggest things that has allowed OpenText to be very successful in the last 5 years is we kept focus on our customers. I have the privilege of sitting with 50 or 60 customers every quarter. Many of them are face-to-face visits where I shadow our sales team to visit companies around the globe, but many are through user groups that I attend and host and some are one-on-one telephone conversation or videoconferences. And every penny we put in our innovation centers is to add value to these customers. You can expect us to see us accelerate delivery of applications, and you will see many of these. You can expect us to incorporate as Covisint closes and become part, we will very quickly integrate the engineering team and we will go to work. I'll give you an example. January 23 of this year, we closed ECD. We have already delivered a release for every one of the ECD product. D2 has had a new release. InfoArchive had a new release in April. Captiva had a release in May. And every one of these products will have a release in EP3. That's a commitment. We are demonstrating some of the integrations that we have done for the newly acquired, and you can expect us to show every one of these integrations in event, at Enterprise World and in the future at the Innovation Tour. And we will continue to work hard on improving our scalability, security and usability of our products. That's an ongoing engineering process for me and the leadership team. So it is something we don't give you a lot of detail about, but you can expect that to be a given in every one of our releases, that you will see improvement.

 And these are my remarks. I look forward to taking any questions later on. Thank you very much.

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 Greg Secord,  Open Text Corporation - Vice-President of IR   [6]
------------------------------
 Thank you, Muhi. Thank you. As we...

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [7]
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 Greg, are we going to take questions?

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 Greg Secord,  Open Text Corporation - Vice-President of IR   [8]
------------------------------
 Yes, we're going to take questions. I do have a microphone. So if you put your hand up, I'll come over there, just so those on the phone can hear.

==============================
Questions and Answers
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 Unidentified Participant,    [1]
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 Maybe starting off with Magellan. Can you help clarify the revenue model? Is that a stand-alone product sold on a license basis with stand-alone pricing? Or is that more of an add-on to customers that are current and under maintenance can get?

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [2]
------------------------------
 Yes, so we -- I just -- you might want to pull forward on the light a little bit. I feel like I'm sitting in a shadow. So here we go. We're looking at a 3-tier framework for the pricing. And the tiers will be based on data volume, not per user pricing. So there'll be a free tier that we want to just drive adoption for. And second tier will be -- so think of Tier 1 sort of up to 100 megabytes of data, a handful of users and that's free. You can run experimental models with it. And we want to drive wide usage into the install base. Second will be a much higher tier, probably still limited number of data scientists. So let's call that a premium version. And then there will be an enterprise version, which has sort of unlimited data and unlimited models. But the primary driver will be size of data sets and that's the best way to frame the economics of it. In the embedded version, as you saw, it will again be driven by amount of data that it can process. So think of it by data levels in processing.

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 Unidentified Participant,    [3]
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 And to clarify, when I think AI, I think about like self-learning. Is there some of that going on with Magellan? Or is this more about stats and analytics from a predictive manner, historical manner?

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [4]
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 Yes, so it's in evolution, right? Well, I'll just start on the market definition. So it's being able to talk to those data models very cleanly. I mean, like pre-integrated Magellan talking to our data models. And that's what it does out of the box. And then being able to find an algorithm out of a library of algorithms, which we do out of the box with Magellan. Machine learning is a different category, if you will, than analytics, predictive analytics, statistics or statistic analytics or predictive analytics. The learning comes in really in the form of kind of the data structure. You don't do learning in Hadoop. You may do learning in GraphX, if you will. So we do have a set of algorithms as well that can learn. Our Capture technology, right? It gets smarter. The more data you pump through Capture, it can go from 80% recognition to 90% to 95%. But I'd say that the primary driver behind Magellan right now is bringing analytics to predictive analytics through the use of algorithms. And with kind of lightweight or kind of V1 of machine learning in it. But the first is really that statistics and predictive analytics.

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 Unidentified Participant,    [5]
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 Okay. And just one last one for me. You mentioned the focus on the large global partners. Anything new specifically that you announced here as far as partner programs, is that more of an evolution? Or any specific new initiatives that were launched here at the conference?

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [6]
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 I think what's new is the volume and the interest. We've gone from big focus on with Deloitte and Accenture to really the top 10. So the frame is now built, where we don't really want to go beyond the top 10, but all top 10 were represented here this week. So there's nothing new in the details of what we call GPP, the Global Partner Program, as it relates to GSI. I just go kind of the volume and the level of sort of education is what's new this year.

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 Unidentified Participant,    [7]
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 Just following on that question around Magellan, can you talk a bit about the sales structure, now that you are adding AI and IoT in, and how you think that sales team changes a bit?

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [8]
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 Yes, fair enough. So Gary Weiss is responsible for Analytics and Discovery, and he will go to market with his dedicated organization. But George and Ted will have the ability to sell, over the large install bases for us to sell. So just like we'll -- we do selectively, we'll have a specific team that goes to market, like Gary Weiss' organization, that's all that they do. They do Analytics and Discovery. And their remit is Magellan, Recommind, for the year. But if you look at Ted in the enterprise side or George, they too will be able to sell it.

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 Unidentified Participant,    [9]
------------------------------
 And then in terms of Covisint, you mentioned Covisint in Internet of Things several times. Can you walk through that Internet of Things and what Covisint brings to the platform?

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [10]
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 Yes, so most individuals understand sort of Covisint in the auto industry, right? And there's only so much I'd like to kind of go into today. But our strategic rationale is looking -- we love auto and transportation, right? ANX was squarely in that market. We have a big part of our trading community as well in auto and transportation. And certainly, Covisint was born in that, that marketplace, right, from OnStar all the way through the supplier portals. We have a view of the world where we can look at their platform and have it speak to really any interesting device. And thus generalize from a type of machine, a car, to a more broader set of industrial machines, such as robots, brake systems, trains, planes, automobiles, advanced manufacturing. So where they've historically been and born in the sort of auto market, we like that market, but we also see a technology path to expand it to other types of interesting machines and that's part of our strategic rationale.

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 Unidentified Participant,    [11]
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 Just a follow-up on this IoT question. So there are a lot of industrial players already pursuing that direction, let's say, Rockwell Automation and GE Predix. What are the key features of your products that could differentiate yourself in the space? And allow me to add one more question about Magellan is, you mentioned it is a lightweight engine or tool. Why choose that position? Why not go to heavyweight? Why not go to even lighter lighter weight? Just curious.

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [12]
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 Sure. I'll take maybe part of that. In the IoT world, we're not building software that will sit on sensors, right? So that's a different market. So we will have gateway software to talk to our network. So one of the things that we think we'll be able to differentiate on is the strength of our network, GXS. EDI is a program talking to a program over a big network, and that program is a gateway. And EDI has dozens and dozens of protocols. If it speaks ANSI 12, EDI, ACH. So we know these -- we know open protocols and gateways talking over a global, secure, fault-tolerant network. So one, we think we'll be able to differentiate on our expertise of open protocols. And then second is our network and then our ability to apply our content management expertise to it, like we saw in the KUKA example. So that's how we think we'll differentiate over others trying to provide gateways, networks and applications.

 On the Magellan side, I'm trying -- I'm going to be polite to IBM, if I can, for a moment. It's too much technology. This has to be simple to use and simple to get value out of. So when I look at our Documentum install base, I look at our Content Server install base. We want to be able to provide a set of open tools that are pre-integrated into those environments, to apply an algorithm to get an insight out of it. And it doesn't take a mainframe, it doesn't take a proprietary cloud, it doesn't take hiring 50 data scientists, it doesn't take buying proprietary third-party data. What it takes is an open tool such as what we introduced. So maybe we can only solve 70% of the world's problems and -- but that's a pretty good place for us to start. We also have constraints that we operate in. I think of some of the reasons why Watson -- you can take big teams of engineers and they deliver nothing. And you can take small teams of engineers and they can change the world. And I think we've taken a mighty well-formed team of a few dozen engineers to deliver a well-defined, well-integrated platform. So you can leverage open-source algorithms, you can write your own and do it in a very prescriptive way. So we put the term lightweight on top of that, maybe there's a better term for it. I think that's going to show a lot of value to our customers.

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 Greg Secord,  Open Text Corporation - Vice-President of IR   [13]
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 Any more questions?

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 Unidentified Participant,    [14]
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 Yes, your tone on organic growth seems to be a bit more enthusiastic than before. Are you suggesting that we're kind of entering a new phase of organic growth for OpenText? If you look back at the past few years, it's really been kind of flat to negative here.

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [15]
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 We just ran that through Magellan and the sentiment came out, I refer back to Greg's initial slide. Little bit of humor for you.

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 Unidentified Participant,    [16]
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 No, I get it.

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [17]
------------------------------
 I don't want to go into tone. We have a semantic engine to talk about tone. Look, I think of the 5 kind of that virtual -- virtuous cycle, right. It starts with operational excellence, intelligent growth, feeding into adjusted operating margin and OCF, back into disciplined capital deployment into our strategic M&A. And that virtuous cycle starts over again. M&A is our leading growth driver, complemented with organic growth. And they're both important to us, but M&A continues to be our leading growth driver. And I don't want to get into tone or specifics, but they're both important to us. And I look at -- we're coming out of a product cycle right here, as you can see at Enterprise World, and we'll be focused on the install base. We'll be focused on cross-selling, bringing Information Lifecycle Management to the install base, bringing Magellan into the install base. This is a new initiative. We're able to bring in Magellan into the install base. We can bring Recommind more broadly into the install base. CEM, I look at competing against IBM. Our #1 competitor is IBM. And when I look at putting Documentum or Content Suite EP2 against FileNet, we have features that they don't. We have Information Lifecycle Management. We have deep SAP integration. They simply don't have these things. Discovery, they don't have, we have. So that's a strong narrative for our sales force, specifically to go cross-sell and compete. In Sterling Commerce, I think their eye is off the ball, and we have things that they don't. We have our new canonical libraries, prepackaged integrations. We have certifications. We have HIPAA certification, ISO 27001 certifications that they don't have, right. And think of what we can do with Watson at 1/6 the cost. In the CEM market, they go to market with a Frankenstein set of third-party partners. So I do feel that we're coming into the year with a good set of product initiatives to be able to grow organically.

------------------------------
 Unidentified Participant,    [18]
------------------------------
 And I guess sort of a related question, and we've asked this before, is that one metric that would be worthwhile, I think for us, is that, in the average spend per customer in terms of getting a feel for what they're buying in terms of these incremental products. Is that something that you're willing to provide going forward, just for us to assess that?

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [19]
------------------------------
 I'll give a -- provide a little, and John can as well. It's not a metric that I think is a really key barometer. I look at annual recurring revenue in its purest definition of Cloud Services plus maintenance as a really important barometer. I think maybe to look back into the business, and our historical trends, are important barometers. Adjusted operating, either the margin or absolute number on adjusted margin and income and operating cash flow. Those really are the best barometers of the business. When you look at that average deal size, are you trying to get more insight into organic, is...?

------------------------------
 Unidentified Participant,    [20]
------------------------------
 Well, you've acquired many products, a lot of them are complementary. We're just trying to get a feel for how that up-selling and cross-selling is working, how effective it is?

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [21]
------------------------------
 Yes, fair enough.

------------------------------
 John Marshall Doolittle,  Open Text Corporation - CFO and EVP   [22]
------------------------------
 Well, Richard, we, as you know, we listen to everybody's input. We provided a lot more metrics over the last couple of years in terms of average deal size, deals over $1 million, et cetera. So I agree with Mark in terms of how meaningful it is, but we certainly -- we'll certainly think about it and consider it going forward.

------------------------------
 Unidentified Participant,    [23]
------------------------------
 Mark, so first it's good to see how the company has evolved, and you guys have created tons of value over the years, so thank you for that. I guess one of the things, going back a bit to the organic side. I've been trying to get a better understanding, so what are the catalysts to see that number improve? And I have been talking to partners and system integrators and clients. And there's 2 things that came as potential feedback. And one of them is there's been a lot of work on integrating the product, but there's still a bit more left on that. And the second thing is the ability to build application, the ease of building application on top, which has significantly also improved. So when you think about it as a, let's say, a baseball game in terms of innings, the feeling I have is that the 9th inning was going to be the catalyst to see really improved organic growth on a sustainable basis is going to be with BANFF, when it -- the puzzle all comes together in an integrated product with the application side. Am I correct here? Or is there something else?

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [24]
------------------------------
 Well, I -- let's try to explore that as best we can, and I know you all appreciate that we're in our quiet period. So it's a -- it's not an ideal time for us, right, to be having organic growth discussions, if you will. There are 3 big As for me: Automation, APIs and AI. Automation, APIs and AI. And I mean, let me put my CTO hat on for a moment. It's really important to continue to drive deep automation of a business process, that's what enterprise software does. You want to automate financials, you want to automate HR, you want to automate suppliers. And we continue to have a lot of opportunity to do that. Being able to turn our software into APIs means we're more integrated and we can enable developers, we can enable system implementers, we can enable customers, we can enable ourselves better. And then the third is being able to draw insights out of that for AI. So those are 3 big As for us. Deep automation of the enterprise processes that are important to us. I know it sounds like something simple, turning what we do into a set of APIs. And I think of one thing that differentiates an Oracle, a Microsoft, a level of scale is to be able to have a vibrant developer community, have a vibrant GSI community and that scale requires building those ecosystems. And that's why APIs are critical to our next phase of development. So I don't want to put a time line today on when we think that magic integration moment happens, but it gets more integrated every single release. We have almost 400 APIs on developer.opentext.com after today's refresh. AppWorks is a really important step for us, being able to build code, which means there are more common engines. And I'm delighted there are more global SIs here who can bring us into more opportunity. So if you'll allow me, I don't want to put a time table and say BANFF is the magic moment, but we have EP3 which is another opportunity, EP4, and of course, BANFF as well. So I don't know if that's helpful or not.

------------------------------
 Unidentified Participant,    [25]
------------------------------
 I just had a couple of questions over here about your margins. You said you're very confident that you're going to be able to significantly improve your margins. What are some of the levers that you can pull that gives you that confidence that you're going to be able to expand that? And then related to that on your last point. You said GSIs are going to be a significant contributor. How do those guys affect your margins as they become a larger contributor to your overall revenue?

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [26]
------------------------------
 So I think on the first one, as we have here up on the slide, significant long-term opportunity to increase AOM. John and I thought about that today, and we're -- for today, and we're very comfortable with that statement. I think if you -- and keyword long-term, you look at benchmarks to larger-scale software companies, there's advantage that comes with our scale. Trailing 12 months as of March, $2.1 billion in revenue. And our AOM definition, right, excludes a couple of things, right, it excludes -- it's not a traditional EBITDA number, if you will. You can do the arithmetic to get there. But it's going to come back to further digitizing the business. That's why I put that point in on operational excellence. So it's further automation. It's going to come from continuing to leverage our talent pools and lower-cost jurisdictions, and it's going to come with scale of the business as we look at longer term and benchmarking us against larger-cap software companies.

------------------------------
 John Marshall Doolittle,  Open Text Corporation - CFO and EVP   [27]
------------------------------
 I would just add. I mean, there's no panacea here. This is -- there's no silver bullet. This is a lot of hard work. It's a programmatic view of every line item on the P&L. It's our license margin, they're at 95%, how do we get them to 97%? James is running 88% margins through automation. How do we get him from 88% to 90%? Same thing on each line item. Muhi on R&D. It's the transition of people from high-cost to low-cost countries. So it'll be a combination of all of those things that will -- gives us confidence that we can build the margins long term.

------------------------------
 Greg Secord,  Open Text Corporation - Vice-President of IR   [28]
------------------------------
 Next question is from the back there.

------------------------------
 Unidentified Participant,    [29]
------------------------------
 Just given the audience, so the audience is up to 5,000 people. I assume a lot of that was from Documentum or EMC, ECD. But there was very little comment in the keynote, and then even here, just on Documentum and how it fits into the road map. Can you just elaborate on how you see Documentum fitting into the road map?

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 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [30]
------------------------------
 Yes, so 2 things. The drive in audience is not driven by Dell EMC, though there are Dell EMC participants here. So -- and we're delighted to welcome those customers. The scale change is broad across the install base and all our products, just as a note. And Muhi is going to drive very hard Documentum in his keynote tomorrow. So my keynote was more of general direction, if you will, for the business, versus driving -- diving deep into any one particular item. I did talk a bit about Information Lifecycle Management, ILM, InfoArchive, which comes directly from Dell EMC, that we're going to look to bring across the install base, maybe you want to talk a little bit of -- more about the solutions you're going to highlight tomorrow morning?

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 Muhi S. Majzoub,  Open Text Corporation - EVP of Engineering   [31]
------------------------------
 Yes. Yes, I'd like to add. I will have couple of slides, 2 or 3 slides in my keynote tomorrow specific to ECD that will highlight the 3 areas of focus that we're focusing on. One is the platform itself. We are committed to the D2 Documentum Content Server platform to every one of these customers. And I will highlight 6 to 8 different integration points and innovation that we are already working on. Second area of focus is the vertical apps. Life sciences is very important for us. It's an area of strength that came with ECD to OpenText, and we're already innovating on top of that. So we've introduced, for the clinical trial application of life sciences, we've introduced an iHub dashboard for the regulatory manager, that they can manage and see how their drug rollout globally from looking at a map picture and then drilling down and getting the intelligence of approval of documentation from regulatory bodies like the FDA or EMA, the European Medicines Agency and others around the globe. The third area of focus is cloud. That's another area that ECD brings to us a platform called LEAP, based on micro services. We are adopting a lot of that technology to become part of the OpenText cloud platform, including building the Docker enablement of every one of our managed services. And I will be listing all of these. We've actually -- in the last 4 months, I met with at least 50 of our customers, including meeting with UPS a few months back as they go through their go live of the -- one of their latest release of application, and they are a large Documentum customer, to highlight these same examples, but there will be a big portion of that. And there will be a section of the demo around the cloud enablement in micro services in my keynote that will touch on how we are leveraging LEAP into the platform.

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [32]
------------------------------
 So much more tomorrow morning, specifically on that road map.

------------------------------
 Unidentified Participant,    [33]
------------------------------
 Okay. And related to really just to your last comment, we've heard a lot about APIs and AppWorks, but nothing about platform as a service, maybe some of that's just marketing. But do you see content management moving increasingly towards platform as a service?

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [34]
------------------------------
 No. And the short answer is no. Our customers in the enterprise look for hybrid workloads. And in heavily-regulated industries, they want to continue to manage content in place inside the -- in the firewall. Look at Bruce Power, ABB, large banks and financial institutions. They are not looking to move nuclear designs into a public SaaS offering or into platform as a service. They certainly are interested in a managed -- a private managed service. They are looking for collaborative scenarios that they can push into a file sync-and-share app, like a Core or a LEAP or some design, low-regulated design applications. But the short answer is no. We're also not a mid-market company where you want to be able to go up and use a credit card and maybe deploy a box or something like that. So I don't mean to be so stark, but the answer is no. And in fact, we continue to see examples of people moving out of the cloud back on-premise for security reasons, for price reasons. The cloud is more expensive. My magic number is 42, and that's 42 months. At 42 months, a subscription service tends to be more expensive than a cloud solution. So no, we're firmly a hybrid company. We don't -- I think that onslaught out of the gate is, quite candidly, over, and we see it as a hybrid world.

------------------------------
 Unidentified Participant,    [35]
------------------------------
 I just wanted to follow up on that ECD question. On the integration slide that you'd highlighted, I believe it said the focus over the next 2 quarters is going to be focused on scaling revenue performance. Can you kind of talk about that and what you're thinking there?

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [36]
------------------------------
 Yes, so that one right there. Well, I think point one in -- again, please respect we're in our quiet period, right? So Q1 was a partial quarter. And this March, April -- excuse me, April, May, June was our first full quarter, right? So we talked about it on our previous call of what our expectations were for this quarter as -- for last quarter. As we get into the July, August, September quarter, it's our -- it's a more integrated sales force, it's a little more enhanced pipeline. Just given the nature of being within our business, the people changes are majoritively behind us. So we see this continuous improvement over the first few quarters, right? First quarter was the stub period, first inside the company, first sort of integrated. We started to get towards the end of purchase price accounting as you get to the end of the first 12 months. That's what we mean by continuous improvement. The accounting -- the important accounting work is behind us, the integration gets behind us, the comp plan changes get behind us, new product begins to get rolled out, we get more cross-trained on other solutions. That's what we mean by continuous improvement.

------------------------------
 Unidentified Participant,    [37]
------------------------------
 Great, thanks. Maybe a little bit to the question Richard asked. Mark, could you talk about what the state of the install base is? Muhi has done a great job in the last few years of meeting and making the commitments to push the products forward. But maybe talk about where you're at in the core OTEX base? And then maybe also what your thoughts are early days around that Documentum base. They had a rocky period moving to D2, what you're thinking about that? Then I got a follow-up.

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [38]
------------------------------
 Yes, I -- go back to a particular slide here. Again, I -- we obviously put this slide in today as of -- as sort of a framework that we wanted to talk about. We're not here to talk about any specific numbers or percentages, as we're in our quiet period, but we are putting organic growth as a topic out there, alongside our leading growth driver of M&A. We're coming into a product cycle. It's the easiest way for me to describe it. And you have the opportunity to walk our booth, talk to our developers and see what we're working on. EP2 is a strong release. EP3 is an even stronger release from that. And bringing Discovery into that install base is an important cross-sell opportunity. Bringing Information Lifecycle, important cross-sell for us. And again, we're not trying to spray-and-pray with 20 solutions, right? We have these kind of 4 key areas that we are training our account executives in to be able to cross-sell into the install base. And that's a powerful play for us. Into the Documentum install base, we're looking to bring SAP integration into that install base. We're looking to bring CEM into that install base as well. I don't know if there's a third you want to highlight, but those are the 2 big areas, of being able to bring CEM and SAP into -- immediately to Documentum customers.

------------------------------
 Unidentified Participant,    [39]
------------------------------
 Yes, and then I guess the follow-up would be -- if you look at, you just started the new year, thinking about the sales force. And last we would've talked in May, we had an organizational change at the senior level. What changes are -- had there been any structural changes beyond the typical comp program tweaking on the sales force side for '18? And then maybe extend that to Professional Services and things you're doing there to improve performance?

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [40]
------------------------------
 None and none. So we're heads down running the business. So as I said on the call, our last call, I really like the structure that we have in place, and we come into fiscal '18 with that structure intact and just executing.

------------------------------
 Greg Secord,  Open Text Corporation - Vice-President of IR   [41]
------------------------------
 Other questions?

------------------------------
 Unidentified Participant,    [42]
------------------------------
 Building on a question from earlier, and when you talked about the hybrid world, you touched on a few select workloads that you guys are moving in that -- into the cloud direction. I guess, can you maybe elaborate on where you're seeing the early shifts? And any common characteristics that you might call out so we have a better sense of which are the appropriate workloads that will eventually migrate over?

------------------------------
 Muhi S. Majzoub,  Open Text Corporation - EVP of Engineering   [43]
------------------------------
 Sure. So I could give you an example. One of the things in tomorrow's keynote I will touch on is we are bridging the gap between on-premise and cloud with external sharing capability. Tomorrow, on stage, we will demonstrate the first use case of that, bringing Content Suite to be able to do external sharing with file sync-and-share in the cloud, where many of our customers demand that of us. We are doing that exact same use case for Documentum D2, for eDOCS and for Media Management, because if you talk, like, to customers in the media space like Disney, Hasbro, Marvel, the Academy, PBS Network, they all have affiliates and partners all over the world that they interact with. And if you look at their process today, if they are moving a video or if they are moving a thousands of images, they don't have that automated. They put things on DVD, on flash drive, they FedEx them, they UPS them overnight. They have to wait to get a reply. Tomorrow, that use case will be very easy. Disney will be able to go into Media Management and extract a thousand files through our facet search capability, drag and drop it into Core, and a partner in Hong Kong, a partner in Singapore or in London can have access to that information in minutes, hours, depending on network speed and how fast that content, the size of the content and how fast you're able to upload it into the cloud. These are real use cases. And again, they tie very well into what we develop. We don't want it to be science project. We want it to add value to customers on day 1, that customers can very quickly bring their partner network into our cloud and enable these use cases from one or multiple of the platforms they use from us. That's one example. Second example, is you look at applications, Mark highlighted in his keynote today couple of them, Snap and Courier, where you might be using our Capture solution for many things within your network to automate, digitizing faxes that come into their enterprise, to have a digital mailroom where all of your mail come and gets digitized by a corporate level group and then disseminated via digital mailbox to your global workforce. We want to be able to deliver that, but we want to be able to give you a use case in Snap or Courier that could take that advanced workflow into the cloud for a portion, 10%, 5%, maybe 50% in the future. A third example is being able to build specific applications for the cloud. An example of that, look at case management. Today, every company, every enterprise, they will have multiple flavor of case management and they are often segregated because of security. An HR case management application is completely different than a legal case management, completely different than your IT corporate help desk that takes phone call about an e-mail system not working. But being able to take that and now create a case management app for your customers and partners, putting it in the cloud, it ties back into the same back end, so all of your data is in one place so you could do all your intelligence and analysis on it, but not have to bring your partners and customers into your network and open the security, but giving them that just one workload. And there are, I could give you dozens of other applications that play in different industry. Clinical trial is one of them. A doctor or a hospital working with global workforce in the medicine space on the rollout of a medicine in Indonesia or Taiwan or Hong Kong. Being able to extract certain areas and put them in the cloud in a secure way, we see a huge opportunity in what we are doing with AppWorks, but also in remaining, we are one of the only vendors that have committed to hybrid for the last 5 years, and we've demonstrated the organic innovation in all of the areas, managed services, on-premise and public SaaS and the cloud.

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [44]
------------------------------
 Yes, so I'll just add to that, just to summarize the 3 great examples. It's the collaborative nature of content. If you don't want someone to log in and get through your firewall, and you're an energy producer and want to share content into another country or a set of partners. So how do you extend that collaboration without bringing them into your network? You do that through tools like Core and LEAP. We've taken archive as a service as well. Instead of pointing to your internal environment, you can point it to our cloud. Capture services, as Muhi mentioned, instead of deploying that on-prem, you can point that into our cloud and we'll move data back. So those are examples of select workloads that are being deployed deeply into the cloud, but hybrid into the on-prem deployment. I think we just have a couple of minutes left for questions.

------------------------------
 Unidentified Participant,    [45]
------------------------------
 Mark, quick one on the global SIs. And maybe just give some color on how things that -- maybe the tone has changed with them from a year ago to now post-Documentum, given that you clearly have the largest install base out there in unstructured data management, and they're very much pushing into digital enterprise.

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [46]
------------------------------
 I think it comes with scale. If I look at our professional service organization, we're not a transformative system implementer. We're not a McKinsey, we're not a Bain, and we have no intention to be. We're also not a professional services organization that's going to go into a boardroom, right, of a Fortune 1000 company. We are experts in implementing our software, so that's sort of point one. So we seek partners, right, who can extend us into a vertical, into a geography, into a customer segment that we can't reach into. We're getting -- as we get critical mass in our capabilities, we become more transformative, right, to the Fortune 10,000. And to be able to bring together a risk management platform with Discovery while consolidating content services and doing that in life sciences, those types of scenarios then require us to get partners, right, like the GSIs. I saw this happen in the ERP space, right, that as SAP got to critical mass in their automation, as Oracle got to critical mass, the GSIs took interest, because they could come in and do larger, more transformative projects. So I think we're better organized today than we were a couple of years ago. We have more solutions to offer, and I think it points to also some market trends and the transformative nature of what we can do. So those things are sort of converging into more interest from the GSIs.

------------------------------
 Greg Secord,  Open Text Corporation - Vice-President of IR   [47]
------------------------------
 Okay, thank you. That concludes our presentation today. Thanks very much.

------------------------------
 Mark J. Barrenechea,  Open Text Corporation - CEO, CTO and Non Independent Director   [48]
------------------------------
 All right. Thank you very much, thank you. Thanks for attending.




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