Documentum co-founder says OpenText sale 'will hurt customers'

John Newton claims customers will lose out after $1.62bn acquisition

OpenText's purchase of Documentum will lead to problems for customers, according to the co-founder of the data storage and retrieval firm.

Dell yesterday confirmed it will sell Documentum, and the rest of its Enterprise Content Division, to OpenText in a $1.62 billion deal. Dell inherited the division as part of its purchase of EMC, which bought Documentum in the 1990s.

Advertisement - Article continues below

OpenText hopes the acquisition of the division will increase its vertical offerings in financial services, energy and engineering.

However, Documentum co-founder John Newton today said he has misgivings about the deal, and pointed to potential problems for customers.

"This news is another classic case of two legacy vendors coming together, but it does nothing to advance innovation," Newton, who left the company in 2001, said. "Furthermore, it begs a lot of conjecture about what OpenText will do with yet another ECM (enterprise content management) product, where there is no precedent of them being able to integrate any of their previously acquired products."

He claimed customers of both OpenText and Documentum now face "overlapping product sets and nothing but complexity in their future".

Newton added: "I encourage their customers to try and embrace open ECM and BPM (business process management) platforms that provide a path forward into the future, where companies innovate faster together."

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

However, OpenText believes the acquisition, which should close within four months, will deepen its portfolio of ECM and Information Life Cycle Management.

CEO Mark Barrenechea said: "This acquisition further strengthens OpenText as a leader in Enterprise Information Management, enabling customers to capture their Digital future and transform into information-based businesses. We are very excited about the opportunities which ECD and Documentum bring, and I look forward to welcoming our new customers, employees, and partners to OpenText." 

Featured Resources

The case for a marketing content hub

Transform your digital marketing to deliver customer expectations

Download now

Fast, flexible and compliant e-signatures for global businesses

Be at the forefront of digital transformation with electronic signatures

Download now

Why CEOS should care about the move to SAP S/4HANA

And how they can accelerate business value

Download now

IT faces new security challenges in the wake of COVID-19

Beat the crisis by learning how to secure your network

Download now
Advertisement

Recommended

Visit/careers/28228/ciso-job-description-what-does-a-ciso-do
Careers & training

What does a CISO do?

20 May 2020
Visit/software/355486/zoom-review-are-we-alone-now
video conferencing

Zoom review: Are we alone now?

29 Apr 2020
Visit/business-strategy/chief-executive-officer-ceo/354935/western-digital-hires-ciscos-david-goeckeler
chief executive officer (CEO)

Western Digital hires Cisco’s David Goeckeler as its new CEO

6 Mar 2020
Visit/strategy/28047/what-is-digital-transformation
Business strategy

What is digital transformation?

6 Mar 2020

Most Popular

Visit/infrastructure/server-storage/355785/dell-emc-poweredge-r7525-review-an-epyc-core-density-to-make
Server & storage

Dell EMC PowerEdge R7525 review: An EPYC core density to make Intel weep

26 May 2020
Visit/infrastructure/network-internet/355792/intel-releases-wi-fi-and-bluetooth-driver-updates-for
Network & Internet

Intel releases Wi-Fi and Bluetooth driver updates for Windows 10

26 May 2020
Visit/operating-systems/microsoft-windows/355781/microsoft-confirms-further-issues-with-troublesome
Microsoft Windows

Microsoft's latest Windows 10 update is causing yet more issues

26 May 2020