This Canadian software company surged on Tuesday to record highs after it reported it’s strategic partnership with Google’s cloud division was going to be expanded.
Open Text Corp (TSX: OTEX) announced today that it would be integrating its own products and services with Google’s G Suite, which led the Canadian-listed stock to reach a record high.
Providing content management software to help customers with managing workflow documents, Open Text has been gaining significantly over the course of the past few months as analysts have been quite bullish on the stock. However, today’s announcement is seen a massive win for Open Text.
Part of the reason why the two companies are deepening their strategic relationship, which first began seven months ago, was due to the evolving Google Anthos hybrid cloud app platform, which meshes well with Open Text’s customer needs.
“Customers are increasingly interested in moving critical EIM workloads to Google Cloud. We’re expanding our partnership with OpenText to help our joint customers migrate these workloads more quickly and effectively,” said OpenText CTO Kevin Ichhpurani in a press release. “Through our partnership, customers can leverage Google Cloud’s reliable and performant infrastructure, AI and ML capabilities, expertise in containerization and our hybrid and multi-cloud solution, Anthos, to deploy cloud-native EIM solutions across public clouds and private data centers.”
While many app platform vendors like to work with multiple different companies like Microsoft, Amazon, and Google, Open Text is choosing to work almost exclusively with Google’s technology.
The deal would see Google’s G Suite applications, including Sheets, Hangouts, Drive, and more, integrated with Open Text’s enterprise management software. At the same time, Open Text will integrate artificial intelligence and machine-learning from Google into its own software.
As such, the deal is seen as bringing the best of both worlds together into a single arrangement, combining Google Cloud’s scalability and AI capabilities alongside Open Text’s already strong enterprise app management system.
Understandably, analysts are enthusiastic about this pairing. According to the NASDAQ website, every analyst covering the stock has a “buy” rating for the company in some form or another, with the vast majority issuing a “strong buy” rating. The move is also seen as a good decision from the perspective of Google’s Cloud division.
Shares of Open Text reached a record high today, surging almost 2 percent in response to the news and ending the day at C$55.73 per share. Whether one looks at the company from a six-month, one-year, or even five-year timeframe, the stock has continued to rise steadily over time as analysts remained largely bullish on the company’s products despite the competition from Google’s own Cloud suite.
Shares of Google also inched up today, up 0.7 percent, although this likely hasn’t been motivated by this news.
Open Text Company Profile
Open Text Corp grew out of a technology project involving the Oxford English Dictionary at Canada’s University of Waterloo in the mid-1980s. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, presentations). The company is based in Ontario, Canada. – Warrior Trading News