Thursday, January 06, 2005

ROB: Open Text could top forecasts

It looks like OpenText may be making some money this quarter. They may even beat analyst forecasts. Where does this success come from? According to CEO Shackleton, the gains are largely due to the integration of the firm IXOS, which offers tools for data and email integration. There seems to be a lot of overlap between the product offerings of IXOS and OpenText. Did Shackleton just buy customers? Is this a bad thing?

Perhaps the lesson here is on information overload. If there’s little in the way of product differentiation or cost, perhaps customers just want an easy way to make a decision. Two major players partnered together certainly seems to offer an easier approach. It will be interesting to see if the this improved ease of decision making will actually translate to further growth in the core industries. As the two companies streamline their product offerings, I wonder what will go by the side in terms of sales, marketing, and development.

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