Not only will we beat the numbers, we will blow past them
The numbers are awesome, we are returning to growth
12 replies (most recent on top)
@kr The future of renewals relies on the stickiness of enterprise software. The gamble is that customers will tolerate bot-only support and sting renewal price hikes because the cost of migrating away is too high.
The company is moving to a No Human Interaction model where AI agents (utilizing the Aviator framework) serve as the primary interface. These bots handle everything from initial outreach to basic tier negotiation. The goal is to transition customers to an automated, self-service portal where renewals are processed as take it or leave it transactions. This removes human negotiation but also eliminates the firewall that previously prevented customer churn. This automation is the technical justification for the reported 15–20% RIF planned for early F27. The company is stripping out its overhead cost to inflate short-term profitability.
we have great renewals (lie)
no they su-k
no they su-k and they're still a lowball sometimes
Math maths but it's specialized. Don't bring up renewals rates when a good chunk of them are getting a deal from internal incompetence. Because if that gets corrected you're going to have a lot more customers leaving. That's a lot of customers seeing a decent increase on RCs.
OT can sell anything they want, but if the RCs arent right we're only fixing one of 3 revenue ends. Bad renewals also hurt paid projects.
@k6 what are you rambling about
@hz ...well I won't immediately assume you're an outsider but you're def not sounding from the support either.
The numbers are hard to explain without full on whistleblowing. Unlike the other support teams where you get people that specialize in the major products, Licensing, Tech Support has a bunch of separate teams; Renewals doesn't function like that. Meaning there's a very realistic chance those numbers are lowball. Like to what we should be taking in they are low.
Because Renewals doesn't really know their products sometimes.
This can lead to:
Dropped lines (meaning no fees for that term)
Reinstatement, late fee, and tax being added once Renewals sees (or is asked by another support team on what happened).
In extreme cases the AE has to resell support as a cheaper option (3-4 years usually).
And the vast majority of the non-tech support issues fall on, in this order:
Bad renewals
Release issues (from newer releases - because guess who got axed. Product managers and engineering)
License issues
Bad orders
We have Renewals, yes. But we don't even have much of a Compliance team to audit them nor anyone else rn 🤔. They got axed too mostly. Worst part is that means all those lowball renewal contracts are getting automated since OT is pushing for that. Even if they got better, that's just getting them automated out faster. With a lot of suddenly happy customers and varying levels of unhappy customer.
So ee isn't wrong here. We're just in areas that see the sh*t firsthand. And one poor choice of layoff can get that out to the world, or news, in record time. You want verifiable tea? Just go make a friend in that dept. Costs $0. Or a discord server.
@hz
I worked at OT (in Corporate) and left several years ago.
I saw these shenanigans myself.
I listened to the actual investor calls every quarter as well.
I suggest you do the same.
Pay particular attention to the analyst questions (and) how OT Leader’s answer them and what they do (and particularly) what they do not say. (Or dodge).
Then look at the entire balance sheet. Also look at the quarterly filings that are public on sec.com/Edgar/Open Text.
Look for large institutional (or) insider selling.
That will give a more balanced (and not ELT 'edited') picture of how your company is really doing.
@hz Genuinely value, or resistant to change because of cost and effort to switch? Which means, once a competitor's product becomes interesting enough (features, ease of use, lower cost) they will jump. Which would explain declining revenue, wouldn't it?
@ee There’s no clarity on who you are. You may even be a competitor. What is clear is that the products OpenText sells are marquee offerings. Renewal rates speak for themselves. These are products customers genuinely value.
Are customers always thrilled with support? Not necessarily. That is a common issue across the industry. Try opening a ticket with Salesforce and see for yourself.
Open Text is absolutely famous for creating the illusion of profitability by reporting everything "excluding exceptional items". They have done this for years and su-ked in unknowing investors who (because they didn't look beneath the surface) didn't understand both the level of debt, or the real OpEx numbers.
It's like the Wizard of Oz.."don't look behind that curtain"
Look at the entire picture...you'll understand it's not growth when they are hiding a multitude of sins on their balance sheet.
Lipstick on a pig..
I know I shouldn't feed the trolls, but I have to say one thing: You can't simply cut costs to increase growth. It doesn't work that way. You might get a quarter or three of good looking numbers, but at the cost of long term viability. Most importantly, THAT IS NOT GROWTH!
Enh. Not like that will stop the silent layoff BS, it's cultural at this point. Even if true.
They'll keep replacing high cost talent with cheaper and less effective options. If there is any improvement in the numbers, that is how it was accomplished.
@a1 you obviously aren't privy to the numbers
My reality is just different from yours.