OpenText Cloud for Government Solution Achieves FedRAMP Authorization

Rhea-AI Summary

OpenText (NASDAQ: OTEX) has received full FedRAMP authorization for its Cloud for Government solution, including Extended ECM and AppWorks. This authorization helps federal agencies modernize applications, strengthen cybersecurity, and deliver a better citizen experience by digitizing records and automating workflows. The solution ensures compliance with evolving security requirements and provides integrated content lifecycle management. Additionally, it supports seamless collaboration and improves operational effectiveness. This FedRAMP authorization enables federal agencies to securely and efficiently migrate more workloads to the cloud while maintaining control and compliance.

Positive

• OpenText achieves full FedRAMP authorization, enhancing security and compliance for federal agencies.
• The Cloud for Government solution includes Extended ECM and AppWorks, providing comprehensive content management and process automation.
• FedRAMP authorization enables federal agencies to modernize applications and securely migrate workloads to the cloud.
• The solution supports seamless collaboration and operational effectiveness, improving the total citizen experience.
• OpenText's Cloud for Government helps digitize records and automate workflows, enhancing service delivery and transparency.
• Integration with leading enterprise applications like Microsoft 365 improves decision-making and operational efficiency.

Negative

• No specific financial growth data or revenue impact mentioned in the PR.
• Potential high implementation costs for federal agencies not addressed.
• No detailed timeline for adoption or implementation of the new solution.

Insights

Financial Analyst

OpenText's FedRAMP authorization for its Cloud for Government solution is a significant milestone. This development positions OpenText as a key player in the federal sector’s cloud transformation journey. The FedRAMP authorization ensures that OpenText’s cloud services comply with stringent security standards, thus reducing barriers for federal agencies considering their solutions.

From a financial perspective, this authorization could lead to increased revenue from government contracts. The federal government is a prominent spender in the IT sector and gaining trust through FedRAMP makes OpenText’s offerings more appealing. Investors should monitor upcoming earnings reports for any mention of new government contracts or partnerships, as these could positively impact OpenText's revenue streams.

In the short-term, the market may react positively to this announcement, considering it an endorsement of OpenText’s security practices and commitment to supporting government needs. In the long-term, continuous compliance with FedRAMP will be crucial, as it will ensure sustained trust and interest from federal agencies. Moreover, the company will need to stay ahead of evolving security requirements to maintain its authorized status, which can be a double-edged sword involving additional compliance costs.

Tech Expert

The technical implications of OpenText achieving FedRAMP authorization for its Cloud for Government solution are substantial. FedRAMP provides a standardized security framework, ensuring that OpenText’s cloud offerings meet robust security and compliance requirements. This includes the integration of OpenText Extended ECM and AppWorks, which are important for managing the entire content lifecycle and automating processes, respectively.

The addition of AppWorks, a low-code platform, is particularly noteworthy. It empowers federal agencies to quickly develop and deploy applications, addressing specific needs with minimal coding skills. This capability is significant, as low-code development platforms are increasingly recognized for their ability to accelerate digital transformation, improve operational efficiency and reduce development costs.

OpenText's alignment with federal security standards through FedRAMP is a testament to its commitment to cybersecurity and data protection. For federal agencies, this means a lower-risk adoption of cloud technologies, which is important in an era of persistent cyber threats. By ensuring secure and compliant information management, OpenText helps these agencies enhance service delivery, ultimately benefiting citizens through improved digital experiences.

For investors, it is essential to understand that this authorization not only enhances OpenText's credibility but also opens the door for broader adoption of its solutions within the government sector, potentially leading to long-term growth opportunities.

New FedRAMP authorized solution enhances federal agencies' ability to deliver a seamless total citizen experience

WATERLOO, ON, June 14, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX), the information company™, today announced it has achieved "fully authorized" status by the Federal Risk and Authorization Management Program (FedRAMP) for its Cloud for Government solution in the United States which now includes OpenText Extended ECM and OpenText AppWorks, two core products within the OpenText Content Cloud portfolio. The FedRAMP program promotes the adoption of secure cloud services across the federal government by providing a standardized approach to security authorization for cloud service offerings.

Modernization of legacy systems and ever-evolving cyber security threats are among the challenges often faced by government agencies. These are critical to delivering a "total citizen experience," one of several key initiatives driven by the U.S. Government to digitize its services and provide citizens with transparent and convenient access to information and services anytime, anywhere. Leveraging cloud-based information management, federal agencies can modernize applications, strengthen cybersecurity, digitize records, provide exceptional citizen experience, and migrate more workloads safely to the cloud. FedRAMP plays a crucial role in enabling the adoption of cloud computing within the federal government while ensuring the security and protection of sensitive data.

"The availability of FedRAMP authorized information management cloud solutions from OpenText validates our commitment to helping U.S. government agencies digitally transform how they work to deliver an intelligent total citizen experience," said Muhi Majzoub, EVP and Chief Product Officer at OpenText. "As an important step in the government's modernization journey, the solution extends the modern, cloud-optimized benefits of information management to federal agencies while adhering to ever-tightening and constantly changing security requirements."

With OpenText Cloud for Government, federal agencies can automate workflows and manage all forms of content throughout the entire content lifecycle — digitizing record files, creating a content ecosystem and gaining a complete view of content across all channels. While also strengthening security, compliance, and control, Cloud for Government will enable federal agencies to deliver a faster and more transparent service. Cloud for Government's information management and low-code process automation will enable federal agencies to work and collaborate seamlessly. The solution combines content storage and document organization with archiving, content management, and imaging in a FedRAMP-compliant cloud environment.

"Government agencies have been wrestling with content management challenges for years," said Adelaide O'Brien, Research Vice President, IDC Government Insights. "Having OpenText information management and process automation tools authorized by FedRAMP provides government CIOs new options for high-security, low-risk flexibility to accelerate their migration to the cloud."  

The Cloud for Government solution offers government agencies a bundled solution to deliver digital cloud services. This includes:

• Extended ECM is an enterprise content management solution that securely governs the information lifecycle by integrating with leading enterprise applications, such as Microsoft® 365. Bringing content and processes together, Extended ECM provides access to information when and where it is needed, improves decision-making and drives operational effectiveness.
• AppWorks is a low-code development platform for building smart, engaging and easy-to-deploy process automation and dynamic case management applications. AppWorks helps re-engineer business processes around customer, employee and partner needs to deliver seamless digital experiences, adapt to changing market expectations, improve efficiency and manage risk.

This solution joins two other OpenText cloud-based solutions on the FedRAMP marketplace:

• OpenText Fortify on Demand performs security assessments of application code, websites and APIs without any software to install or manage. Fortify on Demand helps government agencies adhere to internal risk management policies and government mandates. Fortify also allows agencies to perform automated software composition analysis to identify open-source components and other third-party software in an application, generate software bill of materials, and take control over the security of their software supply chain materials, and take control over the security of their software supply chain.
• OpenText IT Management Platform (ITMX) allows federal agencies to deliver dependable, mission-critical services to citizens and employees while maximizing the value of their IT budgets. ITMX delivers unified IT Service & Asset Management, Universal Discovery & CMDB, and Project & Portfolio Management so federal agencies can identify IT service delivery problems faster; resolve incidents, support tickets and service requests quicker; and manage IT changes, projects and portfolios more reliably.

OpenText is trusted and relied on by the world's largest governments and helps over 3,700 public sector customers globally to address critical IT needs and public sector mandates.

Learn more about OpenText Government Cloud Solutions.

Additional Resources:

• Delivering FedRAMP® authorized information management for government
• OpenText Industries: Public Sector

About OpenText

OpenText™ is The Information Company™. We are the No. 1 information management software and services company in the world. We power and protect information to elevate every person and every organization to gain the information advantage and be their best. OpenText offers a comprehensive portfolio of solutions for content, business network, digital experience, security, analytics and AI, DevOps, IT operations management, and developer APIs. For more information about OpenText (NASDAQ/TSX: OTEX), visit www.opentext.com.

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Certain statements in this press release may contain words considered forward-looking statements or information under applicable securities laws. These statements are based on OpenText's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. OpenText's assumptions, although considered reasonable by the company at the date of this press release, may prove to be inaccurate and consequently its actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors which could occur, see OpenText's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Further, readers should note that we may announce information using our website, press releases, securities law filings, public conference calls, webcasts and the social media channels identified on the Investors section of our website (https://investors.opentext.com). Such social media channels may include the Company's or our CEO's blog, Twitter account or LinkedIn account. The information posted through such channels may be material. Accordingly, readers should monitor such channels in addition to our other forms of communication.

Copyright © 2024 OpenText. All Rights Reserved. Trademarks owned by OpenText. One or more patents may cover this product(s). For more information, please visit https://www.opentext.com/patents.

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SOURCE Open Text Corporation

FAQ

What is FedRAMP authorization, and how does it relate to OpenText's Cloud for Government solution?

FedRAMP authorization is a standardized approach to security for cloud services used by federal agencies. OpenText's Cloud for Government solution has achieved this authorization, ensuring it meets stringent security requirements.

What are the core products included in OpenText's Cloud for Government solution?

The core products include OpenText Extended ECM and AppWorks, which provide enterprise content management and low-code process automation, respectively.

How does OpenText's FedRAMP authorization benefit federal agencies?

It enables federal agencies to modernize applications, strengthen cybersecurity, digitize records, and automate workflows, leading to improved service delivery and compliance.

What improvements can federal agencies expect from using OpenText's Cloud for Government?

Agencies can expect better content lifecycle management, enhanced operational efficiency, seamless collaboration, and a more transparent and efficient citizen experience.

Does OpenText's Cloud for Government support integration with other enterprise applications?

Yes, the solution integrates with leading enterprise applications like Microsoft 365, providing access to information when needed and improving decision-making.

What other OpenText solutions are available on the FedRAMP marketplace?

Other solutions include OpenText Fortify on Demand for security assessments and OpenText IT Management Platform (ITMX) for IT service and asset management.