The ITAM Review

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Opentext acquires Micro Focus: Audits ahead?

You’ll be pleased to know that a company known for their aggressive audit tactics have bought another company known for their aggressive audit tactics…OpenText will acquire Micro Focus for $6 billion USD. The acquisition is expected to close in Q1 2023, subject to approvals.

This acquisition will roughly double the size of OpenText and their CEO/CTO, Mark Barrenechea, says the resulting company will be able to help customers embrace digital transformation to combat inflation and other challenges and will use their experience of becoming a “cloud company” to accelerate the Micro Focus product range. He also says that OpenText will look like “Oracle and SAP” with their mix of on-premises and cloud offerings and the choice that gives to customers – both companies still figuring out their cloud path. In many ways, it’s reminiscent of the recent Citrix/TIBCO merger where two older software companies come together to make something new that is “born” in the cloud.

Barrenechea also points out that the parts of HPE software that didn’t go to Micro Focus (in that $8.8 billion transaction a few years ago) were acquired by OpenText and were successfully integrated; perhaps this will mean a renewed focus on the former HPE parts of the Micro Focus portfolio.


The ITAM angle

As we are all too familiar, software company acquisitions often mean an increase in audit activity as the purchaser seeks to make back as much of their investment as quickly as they can. This fear is only heightened when the companies involved love a good audit anyway and one of them was voted “least helpful” in a recent survey! So, AS if you didn’t have enough to do, ensuring you’re compliant with both of these vendors just moved up your list! A few initial steps include:

  • Make sure you have a full & up-to-date overview of all the Micro Focus and OpenText software within your business
  • Check that you have ALL your contracts, amendments, POs etc. for all purchases – including awareness of any “click through” EULAs.
  • Engage your legal team now to review those contracts/cover any potential issues and make them aware that something may arise next year

Good luck!


Further Reading

About Rich Gibbons

Rich has been in the world of IT and software licensing since 2003, having been a software sales manager for a VAR, a Microsoft licensing endorsed trainer, and now an ITAM analyst looking at software licensing and cloud.

A Northerner renowned for his shirts, Rich is a big Hip-Hop head, and loves travel, football in general (specifically MUFC), baseball, Marvel, and reading as many books as possible. Finding ways to combine all of these with ITAM & software licensing is always fun!

Connect with Rich on Twitter or LinkedIn.

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