Skip to Main Content

About Micro Focus Software Inc.

Micro Focus International helps companies get more mileage from infrastructure software that's no longer the next new thing. Micro Focus extends the life of mature systems by linking them with current software environment such as cloud computing. Customers include businesses like financial institutions, airlines and others that have made big investments in complex mainframe systems. Micro Focus has consolidated expertise through acquisitions of companies such as Novell and the software business of Hewlett Packard Enterprise (in 2017). The UK-based company gets nearly 50% of its revenue from the US.

 

Operations

Micro Focus works in five product groups: IT Operations Management, Application Delivery Management, Security, Application Modernization & Connectivity, and Information Management & Governance. The company offers some 300 products.

IT Operations Management, which accounts for about 30% of revenue, offers enterprise service, network monitoring and management, and cloud-native and multi-cloud management and migration.

Application Delivery Management, about 20% of revenue, helps customers speed up application delivery with performance and security at each phase of the application lifecycle.

Security, 20% of revenue, provides cybersecurity tools that protect data, applications and endpoints, manage identities and access, and provide continuous security monitoring

Application Modernization & Connectivity, 15% of revenue, bridges old and new software through a combination of COBOL, Mainframe, Host Connectivity and CORBA software.

Information Management & Governance, about 15% of revenue, helps customers access, understand, and manage data throughout its lifecycle.

Geographic Reach

Micro Focus is based in the UK and has employees working in more than 40 countries.

The US accounts for about 50% of revenue, with Germany, the UK, France, and Japan, each contributing about 5% or less. Countries in the company's Other category supply for about a third of sales.

 

Sales and Marketing

Micro Focus has about 40,000 customers around the world. They include BMW, Allianz, the Climate Corp., Allegiant Travel, Auckland Transport, and agencies of the US federal government.

 

Financial Performance

Micro Focus changed it fiscal year to end in October from April and made a significant acquisition and a significant divestment. Results reported here are pro forma for the 12-months ended October 2017 and October 2018

The company reported about $4.7 billion in revenue in the 12 months ended October 2018 compared to revenue of $4.2 billion in the 12 months that ended October 2017.

The company reported $1.5 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the 12 months ended October 2018 compared to $1.4 billion EBITDA for the 12 months ended October 2017.

Strategy

Micro Focus has grown over the years by acquiring software companies that could augment its business of helping customers extend the life of infrastructure software and bridge to new systems such as cloud computing. Among the acquired companies were Novell, Attachmate, Net IQ, Serena, and Peregine Systems.

In 2017, Micro Focus placed a big bet when it purchased the software business of Hewlett Packard Enterprise for $8.8 billion. It was the largest technology takeover by a British firm.

Micro Focus struggled after acquiring the HP business. Integrating sales and technology systems was a more complex, time-consuming, and expensive process than the company expected.

Micro Focus has since focused on simpler, more effective sales processes with better alignment and accountability within the sales management teams through the company. The company has removed unnecessary global structures and management layers in sales.

To help raise money, Micro Focus sold its Linux-focused business, Suse, to a private equity firm for about $2.5 billion in 2018.

Micro Focus Software Inc.

1800 S NOVELL PL
Provo, UT 84606-6101
Phone: 1 (801) 861-7000

Stats

Employer Type: Privately Owned
President General Manager: Bob Flynn
VP and General Manager, Asia Pacific: Boris Ivancic
President and General Manager: Kathleen Owens
Employees (This Location): 800
Employees (All Locations): 5,000

Major Office Locations

Provo, UT

Other Locations

Cambridge, MA
Southfield, MI
Provo, UT
Vienna, VA
Seattle, WA
Guangzhou, China
Bengaluru, India
Chennai, India
Kolkata, India
Mumbai, India
New Delhi, India
Pune, India
Kita-Ku, Japan
Osaka, Japan
Rio De Janeiro, Brazil
Vancouver, Canada