What changed in this filing

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Item 1. Business

2020-08-06 compared with 2019-08-01 · 183 added, 120 removed, 137 unchanged (69% of the section changed)

Incorporated in 1991, OpenText has grown to be a leader in providing Enterprise Information Management (EIM) solutions.

We offer a comprehensive line of products and services that aim to enable businesses to grow faster, obtain lower operational costs and reduce information governance and security risks by improving business insight, impact and process speed.

Our software is offered through traditional on-premises solutions, on the OpenText Cloud or a combination of both.

We believe our customers will operate in hybrid on-premises and cloud environments, and we are ready to support the delivery method the customer prefers.

Incorporated in 1991, OpenText has grown to be a leader in providing Information Management software solutions.

We offer a comprehensive line of Information Management products and services that enable businesses to grow faster, obtain lower operational costs and reduce information governance and security risks by improving business insight, impact and process speed.

Our products are offered as software as a service (SAAS), through traditional on-premise solutions, on the OpenText Cloud or as a combination.

Our customers operate in hybrid on-premise and cloud environments and we are ready to support the delivery method the customer prefers.

In providing choice and flexibility, we strive to maximize the lifetime value of the relationship with our customers.

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About OpenText

For more than 25 years, we have developed enterprise software to help customers create a sustainable information advantage in the digital economy.

We have a vision of the "Intelligent and Connected Enterprise" enabling businesses and

governments to accelerate their digital transformation.

The comprehensive OpenText EIM platform and suite of software products and services provide secure and scalable solutions for global companies and governments around the world.

With our software, organizations manage a valuable asset - information.

Information that is made more valuable by connecting it to digital business processes, information that is enriched with analytics, information that is protected and secure throughout its entire lifecycle, information that captivates customers, and information that connects and fuels some of the world's largest digital supply chains in manufacturing, retail, and financial services.

Our EIM solutions are designed to enable organizations to secure their information so that they can collaborate with confidence, validate endpoints with all machines and the Internet of Things (IoT), stay ahead of the regulatory technology curve, identify threats that cross their networks, leverage discovery with information forensics, and gain insight and action through analytics, artificial intelligence (AI) and automation.

At OpenText, we follow the big workloads and the unstructured content from customer information and case files, to employee information, transactions and interactions along the supply chain, to information used to manage assets such as planes, trains, automobiles, nuclear power plants, and oil rigs, to industry accelerators like information technology (IT) and innovation platforms.

OpenText is an Information Management company that provides software and services to maximize the strategic benefits of data and content for increased productivity, growth and competitive advantage.

With a focus on Information Management technologies and services, we continue to innovate and provide customers with the capabilities they need to build resilient businesses and become tomorrow's disruptors.

We provide our customers with choice and flexibility in their path to digital transformation with solutions that can be run on-premise (off-cloud), hybrid, cloud, or as a managed service.

We also accelerate and simplify our customers’ path to information modernization with intelligent tools and services for moving off paper, automating classification, and building clean data lakes for artificial intelligence (AI), analytics and automation.

We believe our acquisition of Carbonite Inc.

(Carbonite) enters us into the next phase of our Total Growth strategy, as discussed below, where we have an opportunity to take advantage of Carbonite's world-class channel organization and partners, to bring our Information Management solutions to all size of customers, including small and medium businesses (SMB) and consumers.

The comprehensive OpenText Information Management platform and services provide secure and scalable solutions for global companies, SMBs, governments and consumers around the world.

We are fundamentally integrated into the parts of our customers' businesses that matter, so they can securely manage the complexity of information flow end to end.

Furthermore, with automation and AI, we connect, synthesize and deliver information where it is needed to drive new efficiencies, experiences and insights.

We make information more valuable by connecting it to digital business processes, enriching it with capture and analytics, protecting and securing it throughout its entire lifecycle, and leveraging it to captivate customers.

Our solutions also connect large digital supply chains in manufacturing, retail and financial services.

Our solutions enable organizations and consumers to secure their information so that they can collaborate with confidence, stay ahead of the regulatory technology curve, identify threats on any endpoint or across their networks, leverage eDiscovery and digital forensics to defensibly investigate and collect evidence, and ensure business continuity in the event of a security incident.

Our Products and Services

We combine digital applications with an information platform, bringing together Content Services, Business Networks (BN), Analytics and AI, Security and the Developer for optimized customer experience, employee engagement, asset utilization, and supply chain efficiency.

Our software capabilities bring together information from both humans and machines, where it can be securely managed, stored, accessed and mined with analytics for actionable and relevant insights.

*Off-cloud is a term we use to describe license transactions

Below is a listing of our EIM solutions.

In all of this, the developer is critical to the development of "secure-from-day-1" applications.

This is why our EIM platform expands our low-code development capabilities with additional out-of-the-box integrations designed to support the developer with a unified application development environment.

In addition, with our cloud-based IoT platform, the enterprise can dynamically integrate multi-tiered supply chain communities and build IoT solutions for greater efficiency, agility, and new value-added services.

Information from machines is supported, whether it's a smart machine, industrial machine, or an automotive or medical device.

We have a complete and integrated portfolio of Information Management solutions, combining robust Information Management platforms with purpose built digital applications and a developer experience for building and customizing applications.

We bring together Business Network (BN), Content Services, Cyber Resilience and Digital Experience with advanced technologies such as AI, Analytics and Automation for business insight, optimized customer experiences, employee engagement, asset utilization, and improved collaboration, supply chain efficiency and simplified risk management.

Our software capabilities unite information from people, systems and Internet of Thing (IoT) devices where it can be securely managed, stored, accessed and mined with analytics for actionable and relevant insights.

Below is a listing of our Information Management solutions.

Business Network

The OpenText BN manages and connects all data within the organization and outside the firewall, between people, systems and IoT devices at a global scale.

Our BN provides a foundation for digital supply chain and secure e-commerce.

Our Trading Grid connects trading partners globally and is used across a variety of industries.

Delivered as a cloud service, we enable data integration, data management, messaging, communications, and secure data exchange across an increasingly complex network of on-premise and cloud applications, connected devices and business partners or customers.

The platform comprises solutions such as digital fax, identity and access management, digital business integration, supply chain optimization, data management and security, omnichannel communications, industrial IoT and more.

These solutions simplify the inherent complexities of business-to-business (B2B) data exchange and offer insights that help drive operational efficiencies, accelerate time to transaction and improve customer satisfaction.

Our BN enables businesses to accelerate and control how information is delivered, manage the identity of everything on the network, and optimize experiences using data from IoT, which we believe increases the security and reliability of sensitive or complex communications.

Content Services

Content Services, such as Extended Enterprise Content Management (ECM) and records management, integrate with platforms, such as SAP, to manage the entire lifecycle of information, in its many formats, from creation through to disposition.

Our Content Services help organizations connect content to their digital business to accelerate productivity, improve governance and drive digital transformation.

Content Services help organizations connect content to their digital business in a common meta-data model to accelerate productivity, improve governance and drive digital transformation.

Our solutions manage the lifecycle, distribution and use of information across the organization, from capture through to archiving and disposition.

Our Content Services solutions range from content collaboration and intelligent capture to records management and archiving, and are available on-premise, on a cloud provider of the customer’s choice, as a subscription in the OpenText Cloud, in a hybrid environment, or as a managed service.

Our Content Services solutions enable customers to capture documents and data from paper, electronic files, and other sources and transform it into digital content delivered directly into enterprise content management solutions and business processes.

Our customers can protect critical historical information within a secure, centralized archiving solution.

With platforms such as Extended Enterprise Content Management (ECM), our Content Services integrate with the applications that manage critical business processes, such as SAP S/4HANA®, SAP® SuccessFactors®, Salesforce®, Microsoft® Office 365® and other enterprise software, establishing the foundation for intelligent business process and content workflow automation.

By connecting unstructured content with structured data workflows, our Content Services allow users to have the content they need, when they need it, reducing errors and saving valuable time.

Additionally, OpenText Content Services adhere to the Content Management Interoperability Services (CMIS) standard and support a broad range of operating systems, databases, application servers, and enterprise applications.

Our Content Services solutions range from intelligent capture to records management and archiving and are available on-premises, as a subscription in the OpenText Cloud or as a managed service.

Business Network

The OpenText Business Network (BN) supports intelligent connections at a global scale providing a proven foundation for digital business and secure e-commerce.

Our BN is a cloud-based platform that facilitates efficient, secure and compliant collaboration and exchange of information inside and outside of organizations.

The platform comprises solutions that simplify the inherent complexities of business-to-business (B2B) data exchange and offer insights that help drive operational efficiencies, accelerate time to transaction and improve customer satisfaction.

Our BN enables businesses to accelerate and control how information is delivered which we believe increases the security and reliability of sensitive or complex communications.

Artificial Intelligence and Analytics

The OpenText Artificial Intelligence platform incorporates Apache Spark, the powerful, open source computing foundation that lets customers take advantage of the flexibility, extensibility, and diversity of an open product stack while maintaining full ownership of their data and algorithms.

As our enterprise software has historically focused on managing data and content archives, we are now able to turn these archives of data into active “data lakes” and incorporate AI to transform this digital information into useful knowledge and insight for our customers.

Our analytics and AI suite helps organizations improve decision-making, gain operational efficiency and increase visibility by enabling IT to place interactive dashboards, reports and data visualizations quickly into the hands of business users.

Our AI leverages a comprehensive set of data analytics software to identify patterns, relationships and trends.

Our analytics and AI suite can leverage structured or unstructured data to help organizations increase their opportunities for growth.

The OpenText EIM platform offers multi-level, multi-role, multi context security to make it one of the most secure information platforms in the world.

Cyber Resilience

Our Cyber Resilience offering provides a comprehensive solution for proactively defending against cyber threats and preparing for business continuity and response in the event of a breach.

It delivers multiple layers of defense to detect, protect against, forensically investigate and remediate security threats or data loss.

We protect information managed by individuals, businesses, and governments within applications and at the endpoints.

OpenText security solutions address information security and digital investigation needs with leading digital forensic tools and endpoint detection and response.

We provide 360-degree visibility across all endpoints, devices and networks, for proactive discovery of sensitive data, identification and remediation of threats and discreet, forensically-sound data collection and investigation.

With the acquisition of Carbonite, we have expanded our security capabilities further for Enterprise, SMB and consumers, delivering continuous threat monitoring, remote endpoint protection, and automated cloud backup and recovery to protect employees and customer data while allowing organizations to prepare for, respond to, and recover quickly from cyberattacks.

Our Discovery platform provides leading forensics and unstructured data analytics for searching and investigating organizational data to manage legal obligations and risk.

It has powerful machine learning capabilities to help legal and compliance teams quickly find critical information for litigation discovery, investigations, compliance, data breach response, business projects, and financial contract analysis.

Security is fundamentally built-in to all OpenText Information Management software.

Our platform offers multi-level, multi-role, multi-context security.

Information is secured at the database level, by user enrolled security, context rights, and time-based security.

Our EIM platform supports single sign-on for system protection and encryption at rest for document-level security.

OpenText security also helps organizations address information security and digital investigation needs with leading digital forensic tools for endpoint detection and response.

Encase TM provides 360-degree visibility across all endpoints, devices and networks, for proactive discovery of sensitive data, identification and remediation of threats and discreet, forensically-sound data collection and investigation.

We also provide encryption at rest for document-level security.

Digital Experience

Our Digital Experience offerings drive revenue growth by improving customer engagement.

Digital Experience solutions create, manage, track and optimize omnichannel interactions throughout the customer journey and integrate with systems of record such as Salesforce® and SAP®.

The OpenText Digital Experience platform enables businesses to gain insight into their customer interactions and optimize them to improve customer lifetime value.

Our Digital Experience platform offers a set of Customer Experience Management (CEM) solutions and extensions that focus on delivering highly personalized content and engagements along a continuous customer journey.

We believe integrations with Digital Experience ensures each user gets the best experience at every point of interaction, whether physical or digital, on any device, and provides a foundation for executing a successful customer experience strategy.

Solutions range from customer communications, web content management, call center optimization, digital asset management, and intelligent forms automation to analytics for voice of the customer, customer journey, testing and segmentation.

Advanced Technologies

Our Advanced Technologies are applied horizontally across all of our platforms and applications to accelerate digital transformation for customers.

They enrich data and deliver valuable insights at scale with machine learning and artificial intelligence, optimize processes with insight, automation and data-driven decision making, and allow organizations to quickly adopt new technologies or adapt processes with API-driven products and developer services.

OpenText is regularly innovating to ensure our customers are armed with the technology they need to create Information Advantage.

AI and Analytics

Our AI and Analytics platform leverages structured or unstructured data to help organizations improve decision-making, gain operational efficiencies and increase visibility through interactive dashboards, reports and data visualizations.

It leverages a comprehensive set of data analytics software to identify patterns, relationships, and trends that are used for predictive process automation and accelerated decision making.

Our AI platform incorporates Apache Spark, a powerful, open source computing foundation that lets customers take advantage of the flexibility, extensibility, and diversity of an open product stack while maintaining full ownership of their data and algorithms.

As our enterprise software has historically focused on managing data and content archives, we are now able to turn these archives of information into clean and integrated “data lakes” that can be mined by AI to extract useful knowledge and insight for our customers.

Digital Process Automation (DPA)

Our DPA enables organizations to transform into digital, data-driven businesses through automation.

Our DPA solutions simplify and streamline processes from front office to back office with intelligent automation, artificial intelligence and ready access to valuable enterprise information.

Customer Experience Management (CEM)

CEM is a set of processes used to track customer interactions throughout the customer journey.

The purpose of CEM is to gain insight into these customer interactions and optimize them to drive loyalty and improve customer lifetime value.

Our CEM platform suite offers a set of CEM solutions and extensions that focus on delivering highly personalized content and customer engagement along a continuous customer journey.

Our CEM suite also helps provide a solid foundation for implementing a successful customer experience strategy.

Our Discovery suite provides leading forensics and unstructured data analytics for searching, collecting, and investigating enterprise data to manage legal obligations and risk.

Our Discovery suite has powerful machine learning capabilities to help legal and compliance teams quickly find critical information for litigation discovery, investigations, compliance, data breach response, business projects, and financial contract analysis.

As an organization, our management believes in delivering “Total Growth”, meaning we strive towards delivering value through organic initiatives, innovations and acquisitions, as well as financial performance.

This growth is further enhanced through our direct and indirect sales distribution channels.

With an emphasis on increasing recurring revenues and expanding our margins, we believe our “Total Growth” strategy will ultimately drive overall cash flow generation, thus helping to fuel our disciplined capital allocation approach and further drive our ability to deepen our account coverage and identify and execute strategic acquisitions.

With strategic acquisitions, we are better positioned to expand our product portfolio and improve our ability to innovate and grow organically, which then further helps us to meet our long-term growth targets.

Our automation solutions enable organizations to transform into digital, data-driven businesses.

DPA delivers and supports a variety of process-driven applications that address complex business needs, while simultaneously providing a flexible platform for rapidly building and deploying customer-centric applications.

Through DPA, we are helping customers re-engineer processes and quickly adapt to customer needs to deliver seamless customer and employee experiences.

We speed the development of case- and process-driven applications with low-code, drag-and-drop components, reusable building blocks and pre-built accelerators to build and deploy solutions more easily.

Our customers are transforming knowledge-driven work involving complex interactions among people, content, transactions and workflows across multiple systems of record to support a diverse range of use cases.

Additionally, we are combining automation and AI to predict future states and trigger processes based on data.

On or off the cloud, our DPA solutions simplify and streamline processes from front to back office.

Developer Experience

The developer is critical to the creation of integrated and "secure-from-day-one" applications.

Our Information Management platform can be expanded with our low-code development tools, product APIs and SDKs, functions as a service, and out-of-the-box integrations designed to support the developer with a unified application development environment.

In Fiscal 2020, we introduced Core Services to support application development and deployment on OT2, our next-generation Information Management as a Service platform.

With the OT2 platform, organizations can extend their existing platforms with new capabilities, and quickly extend solutions to the cloud where it can improve time to value, such as for customer, supplier and partner collaboration.

Combined with our cloud based IoT platform, organizations can dynamically integrate multi-tiered supply chain communities and build IoT solutions for greater efficiency, agility, and new value-added services.

Managed Services

Managed Services in the cloud helps keep customers current on the latest technology, reduces the burden on information technology staff and ensures optimal application management by trusted experts.

OpenText provides a range of Managed Services, whether on-premise, in the OpenText Cloud, in hybrid scenarios or even in other clouds, including our partners:

Google Cloud Platform, Amazon Web Services (AWS) and Microsoft Azure.

Our team provides full managed services for Information Management solutions to meet the needs of our customers.

We can also help by managing the relationship with third-party cloud providers, so customers have a single point of contact and a single Service Level Agreement (SLA) for their solutions.

With OpenText Managed Services, organizations can focus resources on their core business priorities and rest assured that their infrastructure, applications, integrations, and upgrades are all managed, monitored and optimized for security, performance and compliance.

As an organization, we are committed to Total Growth, meaning we strive towards delivering value through organic initiatives, innovations and acquisitions, as well as financial performance.

With an emphasis on increasing recurring revenues and expanding our margins, we believe our Total Growth strategy will ultimately drive overall cash flow generation, thus helping to fuel our disciplined capital allocation approach and further our ability to deepen our customer base and identify and execute strategic acquisitions.

With strategic acquisitions, we are better positioned to expand our product portfolio and improve our ability to innovate and grow organically, which helps us to meet our long-term growth targets.

We believe this “Total Growth” strategy is a durable model that will create shareholder value over both the near and long-term.

We are committed to continuous innovation.

Our investments in research and development (R&D) drive product innovation, increasing the value of our offerings to our installed customer base, which includes Global 10,000 companies.

The Global 10,000 are the worlds largest companies, typically those with greater than $2billion in revenues, as well as the world's largest governments and organizations.

Our investments in research and development (R&D) push product innovation, increasing the value of our offerings to our installed customer base, which includes Global 10,000 companies (G10K), SMBs and consumers.

The G10K are the world's largest companies, typically those with greater than two billion in revenues, as well as the world's largest governments and organizations.

More valuable products, coupled with our established global partner program, lead to greater distribution and cross-selling opportunities which further help us to achieve organic growth.

Over the last three fiscal years, we have invested a cumulative total of approximately $926 million in R&D or approximately 11.6% of cumulative revenue for such three year period and we typically target to spend approximately 11% to 13% of revenues for R&D each fiscal year.

We remain a value oriented and disciplined acquirer and consolidator, having efficiently deployed $6.2 billion on acquisitions over the last 10 years.

Over the last three fiscal years, we have invested a cumulative total of $1.0 billion in R&D or 11.5% of cumulative revenue for that three year period.

We typically target to spend 11% to 13% of revenues for R&D each fiscal year.

The cloud has become a business imperative.

What used to be discussed as a potential option for managing budgets, is now a strategic direction that drives competitive positioning, product innovation, business agility, and cost management.

We are committed to continue our investment in the OpenText Cloud, which is a purpose-built cloud environment for solutions spanning Information Management, Compliance, Cyber Resilience and B2B Integration.

Supported by a global, scalable, and secure infrastructure, the OpenText Cloud includes a foundational platform of technology services, and packaged business applications for industry and business processes.

The OpenText Cloud enables organizations to protect and manage information in public, private or hybrid deployments.

We remain a value oriented and disciplined acquirer, having efficiently deployed $6.8 billion on acquisitions over the last 10 fiscal years.

Mergers and acquisitions are one of our leading growth drivers.

We believe in creating value by focusing on acquiring strategic businesses, integrating them into our business model and using our acquired assets to innovate.

We have developed a philosophy, which we refer to as “The OpenText Business System”, that is designed to create value by leveraging a clear set of operational mandates for integrating newly acquired companies and assets.

We believe in creating value by focusing on acquiring strategic businesses, integrating them into our business model and using our acquired assets to further innovate.

We have developed a philosophy, the OpenText Business System, that is designed to create value by leveraging a clear set of operational mandates for integrating newly acquired companies and assets.

We see our ability to successfully integrate acquired companies and assets into our business as a strength and pursuing strategic acquisitions is an important aspect to our Total Growth strategy.

We expect to continue to acquire strategically, to integrate and innovate, to deepen and strengthen our intelligent information platform for customers.

In Fiscal 2019, we further demonstrated the implementation of our strategy by acquiring Liaison Technologies, Inc.

(Liaison) and Catalyst Repository Systems Inc.

We regularly evaluate acquisition opportunities on an ongoing basis and at any time may be at various stages of discussion with respect to such opportunities.

We expect to continue to acquire strategically, to integrate and innovate, and to deepen and strengthen our intelligent information platform for customers.

In Fiscal 2020, we continued the implementation of our strategy by acquiring Carbonite and XMedius.

We regularly evaluate acquisition opportunities and at any time may be at various stages of discussion with respect to such opportunities.

For additional details on our acquisitions, please see "Acquisitions During the Last Five Fiscal Years", elsewhere in Item 1 of this Annual Report on Form 10-K.

Our OpenText Release 16 platform (Release 16), helps organizations with their digital transformation by digitizing information, experiences, processes and supply chains, to create a better way to work within their enterprise.

Release 16 has a major focus on analysis and reporting across all product lines and use cases.

It offers customers a coordinated platform for digital transformation that is intended to yield the benefits of scale and single-vendor interaction.

We also introduced OpenText OT2, the next generation EIM as a service platform.

With OT2, organizations can leverage existing investments in their on-premises platforms and extend solutions where cloud can quickly improve time to value, such as customer, supplier and partner collaboration.

Delivering SaaS applications that extend existing solutions prevents new information silos and simplifies technology investment decisions by providing compelling enterprise applications for business users.

We continue to make significant investments to our cloud infrastructure, and with products like Release 16 and OT2, virtually all of our products are available in the "OpenText Cloud".

In March 2020, COVID-19 was characterized as a pandemic by the World Health Organization.

The spread of COVID-19 has significantly impacted the global economy and has adversely impacted and is expected to further adversely impact our operational and financial performance.

The extent of the adverse impact of the pandemic on the global economy and markets will continue to depend, in part, on the length and severity of the measures taken to limit the spread of the virus and, in part, on the size and effectiveness of the compensating measures taken by governments and on actual and potential resurgences.

We are closely monitoring the potential effects and impact on our operations, businesses and financial performance, including liquidity and capital usage, though the extent is difficult to fully predict at this time due to the rapid and continuing evolution of this uncertain situation.

We are conducting business with substantial modifications to employee travel and work locations and also virtualization or cancellation of all sales and marketing events, which we expect to continue throughout Fiscal 2021, along with substantially modified interactions with customers and suppliers, among other modifications.

In March 2020, we also drew down $600 million from the Revolver, as defined below, as a preemptive measure in order to increase our cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 pandemic.

We continue to actively monitor the impact of the COVID-19 pandemic on all aspects of our business and geographies, including customer purchasing decisions, and may take further actions that alter our business operations as may be required by governments, or that we determine are in the best interest of our employees, customers, partners, suppliers, and shareholders.

It is uncertain and difficult to predict what the potential effects any such alterations or modifications may have on our business including the effects on our customers and prospects, or our financial results and our ability to successfully execute our business strategies and initiatives.

As a precaution, we have temporarily and significantly reduced hiring and discretionary spending, while taking note of some savings to be achieved through travel restrictions and the cancellation of certain events.

In addition, in order to further mitigate the operational impacts of COVID-19, our Compensation Committee and Board approved the following measures effective for the period May 15, 2020 through June 30, 2021, subject to review and modification as the situation warrants.

Please also see "Special Fiscal 2020 Performance Bonus" in Part III, Item 11, elsewhere in this Annual Report on Form 10-K.

15% base salary reduction and forbearance of any annual variable cash compensation effective May 15, 2020 for the remainder of Fiscal 2020 and for all of Fiscal 2021, totaling an approximate 60% reduction in targeted cash compensation, for our Chief Executive Officer (CEO) & Chief Technology Officer (CTO);

15% base salary reduction and 15% reduction in target annual variable cash compensation for our other Named Executive Officers and members of the executive leadership team (ELT);

10% base salary reduction and 10% reduction in target annual variable cash compensation, as applicable, for Vice-President- director-, and manager-level employees;

5% base salary reduction for all other employees subject to exception for certain of our employees, such as our employees in Asia who are earning less than the equivalent of $20,000 per year;

15% reduction in cash retainer compensation fees payable to the Board of Directors;

Suspension of employer paid contributions to retirement benefits in the United States and Canada for the remainder of Fiscal 2020 and Fiscal 2021.

These cost reduction measures are in addition to other previously disclosed facilities and workforce related actions as part of our COVID-19 Restructuring Plan.

For more information, please see note 18 "Special Charges" in the Notes to Consolidated Financial Statements included in Item 8 to this Annual Report on Form 10-K.

The ongoing and ultimate impact of the COVID-19 pandemic on our operations and financial performance depends on many factors that are not within our control.

For more information, please see Part I, Item 1A "Risk Factors" included elsewhere within this Annual Report on Form 10-K.

Looking Towards the Future

In Fiscal 2021 we intend to continue to implement strategies that are designed to:

Broaden Our Reach into EIM through the Global 10,000.

Broaden Our Reach into Information Management through the G10K.

As technologies and customers become more sophisticated, we intend to be a leader in expanding the definition of traditional market sectors.

This is the marquee target for EIM and organic growth.

This is the marquee target for Information Management and organic growth.

We continue to focus on connecting the G10K to our information platform and we believe we are well positioned to expand our penetration in this market.

Invest in the Cloud.

The cloud is quickly becoming a business imperative.

What used to be discussed as a potential option for managing budgets, is now a strategic direction that drives competitive positioning, product innovation, business agility, and cost management.

We are committed to continue our investment in The OpenText Cloud, which is a purpose-built cloud

environment for enterprise solutions spanning Information Management, Compliance, and B2B Integration.

Supported by a global, scalable, and secure infrastructure, OpenText Cloud includes a foundational platform of technology services, and packaged business applications for industry and business processes.

The OpenText Cloud enables organizations to protect and manage information in public, private or hybrid deployments.

Today, the destination for innovation is indisputably the cloud.

Businesses of all sizes rely on a combination of public and private clouds, managed services and off-cloud solutions.

As a result, we are committed to continue to modernize technology infrastructure and leverage our existing investments in the OpenText Cloud.

The combination of OpenText cloud-native applications and managed services, together with the scalability and performance of our partner public cloud providers, offer more secure, reliable and compliant solutions to customers wanting to deploy cloud-based Information Management applications.

The OpenText Cloud is designed to build additional flexibility for our customers:

becoming cloud-native, connecting anything, and extending capabilities quickly with multi-tenant SaaS applications and services.

Deepen Existing Customer Footprint .

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We have significant expertise in a number of industry sectors and aim to increase our customer penetration based on our strong credentials.

We are particularly focused on circumstances where the customer is looking to consolidate multiple vendors with solutions from a single source while addressing a broader spectrum of business problems or equally new or existing customers looking to take a more holistic approach to digital transformation.

We are particularly focused on circumstances where the customer is looking to consolidate multiple vendors with solutions from a

single source while addressing a broader spectrum of business problems or equally new or existing customers looking to take a more holistic approach to digital transformation.

Invest in Technology Leadership.

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OpenText is committed culturally, programmatically and strategically to be a partner-embracing company.

Our partnerships with companies such as SAP SE, Google Cloud, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation and others serve as an example of how we are working together with our partners to create next-generation EIM solutions and deliver them to market.

Our partnerships with companies such as SAP SE, Google Cloud, Amazon AWS, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation and others serve as examples of how we are working together with our partners to create next-generation Information Management solutions and deliver them to market.

We will continue to look for ways to create more customer value from our strategic partnerships.

Broaden Global Presence .

As customers become increasingly multi-national and as international markets continue to adopt EIM, we plan to further grow our brand, presence, and partner networks in these new markets.

As customers become increasingly multi-national and as international markets continue to adopt Information Management, we plan to further grow our brand, presence, and partner networks in these new markets.

We are focused on using our direct sales for targeting existing customers and plan to address new geographies jointly with our partners.

Selectively Pursue Acquisitions.

We expect to continue to pursue strategic acquisitions to strengthen our service offerings in the EIM market.

In light of the continually evolving marketplace in which we operate, we regularly evaluate acquisition opportunities within the EIM market and at any time may be in various stages of discussions with respect to such opportunities.

We expect to continue to pursue strategic acquisitions to strengthen our service offerings in the Information Management market.

In light of the continually evolving marketplace in which we operate, we regularly evaluate acquisition opportunities within the Information Management market and at any time may be in various stages of discussions with respect to such opportunities.

We plan to continue to pursue acquisitions that complement our existing business, represent a strong strategic fit and are consistent with our overall growth strategy and disciplined financial management.

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Customer Support

The first year of our customer support offering is usually purchased by customers together with the license of our EIM software products.

The first year of our customer support offering is usually purchased by customers together with the license of our Information Management software products.

Customer support is typically renewed on an annual basis and historically customer support revenues have been a significant portion of our total revenue.

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Professional Service and Other

We provide consulting and learning services to customers and generally these services relate to the implementation, training and integration of our licensed product offerings into the customer's systems.

We provide consulting and learning services to customers.

Generally, these services relate to the implementation, training and integration of our licensed product offerings into the customer's systems.

Our consulting services help customers build solutions that enable them to leverage their investments in our technology and in existing enterprise systems.

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Marketing and Sales

Our customer base consists of Global 10,000 organizations, enterprise companies, mid-market companies and public sector agencies.

Our customer base consists of G10K organizations, enterprise companies, public sector agencies, mid-market companies and with the acquisition of Carbonite, SMB's and direct consumers.

Historically, including in Fiscal 2020, no single customer has accounted for 10% or more of our total revenues.

Partners and Alliances

We are also committed to establishing relationships with the best resellers and technology and service providers to ensure customer success.

We are committed to establishing relationships with the best resellers and technology and service providers to ensure customer success.

Together as partners, we fulfill key market objectives to drive new business, establish a competitive advantage, and create demonstrable business value.

Our Global Partner Program enables us to focus on the core roots of our partnerships.

The framework offers five distinct programs:

Referral, Reseller, Services, Technology, and Support.

This creates an extended organization to develop technologies, repeatable service offerings, and solutions that enhance the way our customers maximize their investment in our products and services.

Through the Global Partner Program, we are extending market coverage, building stronger relationships, and providing customers with a more complete local ecosystem of partners to meet their needs.

Each distinct program is focused to provide valuable business benefits to the joint relationship.

A complete listing of our partners can be found on our website.

Our strategic partners include:

We have a number of strategic partnerships that are essential to our success.

These include the most prominent organizations in enterprise software, hardware and public cloud, with whom we work to enhance the value of customer investments.

They include:

SAP SE (SAP) :

Our solutions help SAP customers improve the way they manage content in SAP systems in order to assist them to improve efficiency in key processes, manage compliance, or gain new insights.

We are SAP’s partner for content services.

The OpenText Suite for SAP solutions provides key business content within the context of SAP business processes providing better efficiencies, reduced risk and better experiences for customers, employees and partners - accessible anywhere and anytime and available on and off-cloud.

Google Cloud:

We work together with Google Cloud to deploy our EIM solutions on the Google Cloud Platform.

We work together with Google Cloud to deploy our Information Management solutions on the Google Cloud Platform as fully managed services.

This includes a containerized application architecture for flexible cloud or hybrid deployment models.

Deploying our solutions on the Google Cloud Platform allows our customers to scale their deployments as their businesses demand.

We also work with the Google Cloud engineering team to explore integrations with Google Analytics, G-Suite and other functions.

We also work with the Google Cloud engineering team to explore integrations with Google AI/ML, Analytics, G-Suite and other functions.

Amazon Web Services (AWS) :

Our collaboration offers businesses the opportunity to consume our Information Management solutions as fully managed services on AWS for cost savings, increased performance, scalability and security.

Microsoft Corporation (Microsoft) :

Our partnership enables organizations to connect all aspects of their content infrastructure and take advantage of their most valuable asset - information.

This helps organizations to better scale operations with confidence and improve IT and developer efficiency - all with the aim of obtaining a lower total cost of ownership over competitive solutions.

Together with Microsoft, we enable customers to connect all aspects of their content infrastructure, integrating these into business processes and enable collaboration, management and governance on the most valuable asset - information.

Oracle Corporation (Oracle):

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Salesforce.com Corporation (Salesforce) :

The company-to-company partnership between OpenText and Salesforce is focused on continuing to grow a full portfolio of EIM solutions to complement the Salesforce ecosystem by uniting the structured and unstructured information experience.

Our main global systems integrators include, but are not limited to, Accenture plc, Deloitte Consulting LLP, Tata Consultancy Services, ATOS and Ernst & Young.

The company-to-company partnership between OpenText and Salesforce is focused on growing a full portfolio of Information Management solutions to complement the Salesforce ecosystem by uniting the structured and unstructured information experience.

Our Global Partner Program offers five distinct programs:

Referral, Reseller, Services, Technology, and Support.

This creates an extended organization to develop technologies, repeatable service offerings, and solutions that enhance the way our customers maximize their investment in our products and services.

Through the Global Partner Program, we are extending market coverage, building stronger relationships, and providing customers with a more complete local ecosystem of partners to meet their needs.

Each distinct program is focused to provide valuable business benefits to the joint relationship.

Global Systems Integrators (GSI) provide customers with digital transformational services around OpenText technologies.

They are trained and certified on OpenText solutions and enhance the value of our offerings by providing

technical credibility and complementary services to customers.

Our GSIs include, Accenture plc, ATOS International S.A.S., Capgemini Technology Services SAS, Cognizant Technology Solutions U.S.

Corp., Deloitte Consulting LLP, and Tata Consultancy Services (TCS).

With the acquisition of Carbonite, our partner programs also enable managed service providers (MSPs), resellers, distributors, and network and security vendors to grow through cloud-based cybersecurity, threat intelligence, and backup and recovery solutions aimed at the SMB and consumer markets.

We provide the industry-specific tools, services, training, integrations, certifications, and platforms our partners need to ensure trust and reliability with their customer base.

International Markets

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We compete with multiple companies, some that have single or narrow solutions and some that have a range of information management solutions, like us.

Our primary competitor is International Business Machines Corporation (IBM), with numerous other software vendors competing with us in the EIM sector, such as Veeva Systems Inc., j2 Global Inc., Pegasystems Inc., Hyland Software Inc., SPS Commerce Inc., Box Inc.

Our primary competitor is International Business Machines Corporation (IBM), with numerous other software vendors competing with us in the Information Management sector, such as Veeva Systems Inc., Quadient Inc., Pegasystems Inc., Hyland Software Inc., SPS Commerce Inc., Box Inc.

and Adobe Systems Inc.

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Acquisitions During the Last Five Fiscal Years

Our competitive position in the marketplace requires us to maintain a complex and evolving array of technologies, products, services and capabilities.

We regularly evaluate acquisition opportunities within the Information Management market and at any time may be in various stages of discussions with respect to such opportunities.

Below is a summary of the more material acquisitions we have made over the last five fiscal years.

In Fiscal 2020, we completed the following acquisitions:

O n January 31, 2019 , we acquired Catalyst for approximately $70.8 million .

On December 17, 2018 , we acquired Liaison for approximately $310.6 million .

O n March 9, 2020, we acquired XMedius, a provider of secure information exchange and unified communication solutions, for $73.3 million .

O n December 24, 2019, we acquired Carbonite, a leading provider of cloud-based subscription backup, disaster recovery and endpoint security to SMB, consumers, and a wide variety of partners, for $1.4 billion .

O n December 2, 2019 , we acquired certain assets and certain liabilities of Dynamic Solutions Group (The Fax Guys) for $5.1 million .

Prior to Fiscal 2020, we completed the following acquisitions:

O n February 14, 2018, we acquired Hightail, a leading cloud service for file sharing and creative collaboration, for approximately $20.5 million.

On September 14, 2017, we acquired Guidance, a leading provider of forensic security solutions, for approximately $240.5 million.

On July 26, 2017, we acquired Covisint, a leading cloud platform for building Identity, Automotive,and IoT applications, for approximately $102.8 million.

O n January 23, 2017, we acquired certain assets and assumed certain liabilities of the enterprise content division of EMC Corporation, a Massachusetts corporation, and certain of its subsidiaries (ECD Business) for approximately $1.62 billion.

O n January 31, 2019, we acquired Catalyst, a leading provider of eDiscovery that designs, develops and supports market-leading cloud eDiscovery software, for $71.4 million .

On December 17, 2018, we acquired Liaison, a leading provider of cloud-based business to business integration, for $310.6 million.

O n February 14, 2018, we acquired Hightail, a leading cloud service for file sharing and creative collaboration, for $20.5 million.

On September 14, 2017, we acquired Guidance, a leading provider of forensic security solutions, for $240.5 million.

On July 26, 2017, we acquired Covisint, a leading cloud platform for building Identity, Automotive, and IoT applications, for $102.8 million.

On July 31, 2016, we acquired certain customer communications management software services assets and liabilities from HP Inc.

(CCM Business) for approximately $315.0 million.

On July 20, 2016, we acquired Recommind, a leading provider of eDiscovery and information analytics, based in San Francisco, California, United States, for approximately $170.1 million.

(CCM Business) for $315.0 million.

On July 20, 2016, we acquired Recommind, a leading provider of eDiscovery and information analytics, based in San Francisco, California, United States, for $170.1 million.

O n May 1, 2016, we acquired ANXe Business Corporation (ANX), a leading provider of cloud-based information exchange services to the automotive and healthcare industries, based in Michigan, United States.

Total consideration for ANX was approximately $104.6 million.

Total consideration for ANX was $104.6 million.

On April 30, 2016, we acquired certain customer experience software and services assets and liabilities from HP Inc.

(CEM Business) for approximately $160.0 million.

(CEM Business) for $160.0 million.

On November 23, 2015, we acquired Daegis Inc.

(Daegis), a global information governance, data migration solutions and development company, based in Texas, United States.

Total consideration for Daegis was approximately $23.3 million.

On January 16, 2015, we acquired Actuate Corporation (Actuate), based in San Francisco, California, United States, for $332.0 million, comprised of approximately $322.4 million in cash and shares we purchased of Actuate in the open market with a fair value of approximately $9.5 million as of the date of acquisition.

Actuate was a leader in personalized analytics and insights.

On January 2, 2015, we acquired Informative Graphics Corporation (IGC), based in Scottsdale, Arizona, United States, for approximately $40.0 million.

IGC was a leading developer of viewing, annotation, redaction and publishing commercial software.

Total consideration for Daegis was $23.3 million.

We believe our acquisitions support our long-term strategy for growth, strengthen our competitive position, expand our customer base and provide greater scale to accelerate innovation, grow our earnings and provide superior shareholder value.

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We believe that relations with our employees are strong.

None of our employees are represented by a labour union, nor do we have collective bargaining arrangements with any of our employees.

employees are represented by a labour union, nor do we have collective bargaining arrangements with any of our employees.

However, in certain international jurisdictions in which we operate, a “Workers' Council” represents our employees.

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In addition, our filings with the SEC may be accessed through the SEC's website at www.sec.gov and our filings with the Canadian Securities Administrators (CSA) may be accessed through the CSA's System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com .

Except for the documents specifically incorporated by reference into this Annual Report, information contained on the SEC or CSA websites is not incorporated by reference in the Annual Report on Form 10-K and should not be considered to be a part of the Annual Report.

The SEC and SEDAR websites are included in this Annual Report on Form 10-K as inactive textual references only.

Except for the documents specifically incorporated by reference into this Annual Report, information contained on the SEC or CSA websites is not incorporated by reference in this Annual Report on Form 10-K and should not be considered to be a part of this Annual Report.

All statements made in any of our securities filings, including all forward-looking statements or information, are made as of the date of the document in which the statement is included, and we do not assume or undertake any obligation to update any of those statements or documents unless we are required to do so by applicable law.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business