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Technology Stocks : Open Text -- Ignore unavailable to you. Want to Upgrade?

To: Tokyo VD who wrote (1024)	1/29/1999 2:59:00 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 1195

Tokyo, Here's a longish and very rapidly written, unedited, set of thoughts: Open Text would call it the "Enterprise" deployment category, meaning that it is possible to sell / rollout their solution to an entire enterprise due to web-centricity, and relatively simple functionality = little or no training. I view them more like "groupware" in this regard. If your group is the enterprise, then everyone needs a license and it has to be simple to deploy. Check, check, check. DCTM is in the process-centric document management space, building higher end, high value solutions that solve fairly complex business problems. FDA Drug Approval process - support for that, for example. Their definition of an enterprise app would be a high-value, mission critical, business process/solution. DOCSF is in the generic DM business tending slightly towards the DCTM approach (and I mean slightly) but with increasing focus on delivering completed applications (such as their Precedence Management system announced yesterday). Their definition of "enterprise" has in the past meant that the system could handle large volumes of documents. Deployment traditionally was tougher for distributed organizations and/or very large diverse orgs. However, they too (all of the above and FILE) are all heavily on the 'net bandwagon and DM is in fact a real good use of browser technology. They are all so different, really. OTEXF is banking on high volumes of commodity priced seats. I believe there is some merit in this strategy. However, they have lots of other pieces of the puzzle missing. Channel sales will be important to them, and they have so far demonstrated that they don't know how to quickly build the channel. Competition from Lotus in particular I think. Microsoft vis a vis improvements to the OS and web services and Office 2000, will introduce more confusion (hey, do we adapt MS technology or buy something?) in Microsoft centric sites. Of all the DM players, I believe DOCSF has the most potential to upset things for OTEXF. They are closest to OTEXF in price model (DCTM and FILE can't stand quick commoditization of product and pricing, it will kill them. Fortunately for both they don't need to, short term. DCTM reminds me more of a SEBL than a DM company. FILE on the other hand... I see dark clouds on their horizon while players on either side of them consolidate and grow market share, they are left with the profitable but not growing-as-fast big scale imaging market) Other DOCSF advantages: They have a big big, world wide, channel. They have technology that can stand up to scrutiny. Big client base, fully seeded and ripe for further exploitation. Disadvantages: history. Their "turnaround" has been a long time coming and many staff have been in and out. I think they bottomed out earlier these past 12 months and are in fact on the mend. They know what the prize is, that I know for sure. Many will laugh at me for this statement. The end game is not yet known, but I am certain that OTEXF recognizes the danger and removing them as competition was on their minds not so long ago. Sorry to OTEXF thread followers, a little off topic. Disclaimer, I work with DOCSF products, and FILE to some degree. Oddly enough I am long DCTM and DOCSF at this point, but that changes all the time. Trading and the dm biz diverge all the time for me. My opinions only. I may be insane! Or not. Take your pick! Michael