OpenText Private Cloud Enables Global Organizations to Run Local Sovereign Information Clouds

Rhea-AI Summary

OpenText (NASDAQ: OTEX) has announced major enhancements to its Private Cloud offerings, focusing on data sovereignty and regulatory compliance solutions. The platform enables global organizations to maintain local control over their data storage and processing while ensuring compliance with regional regulations like GDPR.

The Private Cloud service features strategically located data centers across key regions including Canada, UK, Germany, France, and Australia. The offering includes dedicated single-tenant environments, customizable deployment options, end-to-end encryption, and comprehensive compliance support for various standards including ISO 27001, HIPAA, Protected B, and IRAP.

Key components include AI-led content services, observability and service management solutions, cybersecurity features, private cloud infrastructure, Private AI Capabilities through OpenText Aviator, and a Sovereign AI Data Cloud for sensitive data management.

Insights

Enterprise Technology Analyst

OpenText's enhanced Private Cloud strengthens its position in the data sovereignty market, addressing critical compliance needs for global enterprises.

OpenText's announcement represents a strategic expansion of its Private Cloud capabilities, directly addressing the growing regulatory challenges multinational organizations face with data sovereignty. The enhanced offering allows companies to maintain global operations while ensuring data remains compliant with regional regulations like GDPR by providing strategically located data centers across Canada, UK, Germany, France, and Australia.

The timing is particularly relevant as data residency laws continue to proliferate worldwide, creating complex compliance requirements for enterprises operating across borders. By focusing on highly regulated industries such as financial services, healthcare, and the public sector, OpenText is targeting segments where compliance mandates create persistent demand and higher switching costs.

The Private Cloud enhancements include several technical differentiators: dedicated single-tenant environments, customizable deployment options, end-to-end encryption with customer-controlled keys, and comprehensive compliance certifications including ISO 27001, HIPAA, Protected B, and IRAP. These features position OpenText to capture premium pricing from organizations prioritizing security and compliance over pure cost considerations.

Most notably, OpenText is integrating AI capabilities within its sovereignty framework through OpenText Aviator for in-country generative AI and its Sovereign AI Data Cloud. This addresses a critical market gap, as most generative AI implementations struggle with data sovereignty concerns. By enabling AI adoption without compromising regulatory compliance, OpenText creates a compelling value proposition that bridges innovation and governance requirements.

These enhancements demonstrate OpenText's commitment to expanding beyond traditional content management into higher-growth segments including observability, cybersecurity, and AI-driven services while maintaining its enterprise compliance focus as a key differentiator against hyperscaler cloud providers who often take more standardized approaches to sovereignty requirements.

WATERLOO, ON, July 29, 2025 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), a global leader in information management, today announced significant enhancements to its Private Cloud offerings, designed to meet the growing demand for data sovereignty, regulatory compliance, and localized control in an increasingly complex digital economy.

Global organizations need control of their applications, data and processing and need to eliminate dependencies on data residency laws, privacy regulations, and operational requirements that vary by country and region.

OpenText™ Private Cloud enables enterprises to operate globally while maintaining strict control over where and how their data is stored, processed, and protected—ensuring compliance with local laws and building trust with customers and regulators alike.

Global Reach, Local Control

OpenText Private Cloud is purpose-built for organizations that need to be global in scale but local in execution. With data centers strategically located across key regions — including Canada, UK, Germany, France, Australia — OpenText provides customers with the flexibility to choose where their data resides. This ensures that sensitive information remains within national borders, in compliance with data sovereignty requirements such as GDPR and emerging regulations in the EU.

"Data sovereignty and local platform control is now a top technology and business priority for the world's largest organizations," said Mark J. Barrenechea, CEO & CTO of OpenText. "The OpenText Private Cloud give customers the confidence to innovate globally while respecting the legal and cultural expectations of every market they serve, and to deploy locally and have complete control within their country of choice."

Tailored for Regulated Industries

OpenText Private Cloud is designed for highly regulated industries such as financial services, healthcare, bio-technology, energy, and the public sector. These sectors face stringent compliance mandates that require not only secure data storage but also auditable controls, encryption, and localized data governance.

With OpenText, customers benefit from:

• Dedicated, single-tenant environments that provide maximum isolation and security.
• Customizable deployment options to meet specific regulatory and operational needs.
• End-to-end encryption and key management with customer-controlled keys.
• Comprehensive compliance support for standards such as ISO 27001, HIPAA, Protected B, IRAP, and more.

A Trusted Partner for Digital Transformation

OpenText Private Cloud is part of the OpenText Cloud, a unified platform that supports the full spectrum of information management—from content services and cybersecurity to analytics and AI. Customers can seamlessly integrate their private cloud environments with OpenText's public cloud services or on-premises systems, enabling hybrid and multi-cloud strategies that align with their digital transformation goals.

"OpenText has been instrumental in helping us navigate the complexities of data sovereignty as we expand into new markets," said Shannon Bell, EVP and Chief Digital Officer of OpenText. "Our Private Cloud offering gives us the agility to scale globally while maintaining the trust of our customers and regulators locally."

Key Offerings

• OpenText Content Management: AI-led content services that empower organizations to capture, archive, search, and summarize across both structured and unstructured data.
• OpenText Observability and Service Management: AI-led service management solutions that unify experiences and delivers efficiency across multiple enterprise functions including IT, HR, Services, Support, and Supply Chain.
• OpenText Cybersecurity: From threat detection and response to data encryption, identity access management, and application security, OpenText helps organizations mitigate risks and protect sensitive information.
• Private Cloud Infrastructure: OpenText ensures full data residency and sovereignty with its private cloud infrastructure. This offering guarantees that data remains within the designated jurisdiction, supporting compliance with local regulations and standards.
• Private AI Capabilities: OpenText Aviator enables secure, in-country generative AI for on-premise solutions. This capability allows organizations to leverage the power of AI while maintaining control over their data and ensuring compliance with local data sovereignty requirements.
• Sovereign AI Data Cloud: OpenText offers a secure, single-tenant environment for managing and analyzing sensitive data. This solution is aligned with government standards, providing a trusted platform for public sector organizations and regulated industries.

Looking Ahead

As data sovereignty regulations continue to evolve, OpenText remains committed to helping customers stay ahead of the curve. The company is actively expanding its global data center footprint and investing in advanced compliance automation, AI-driven governance, and localized support services.

"Our mission is to empower organizations to manage and protect their information—wherever it lives," added Barrenechea. "With OpenText Private Cloud, our customers can confidently embrace the future of global business, knowing their data is secure, compliant, and under their control."

About OpenText

OpenText™ is a leading Cloud and AI company that provides organizations around the world with a comprehensive suite of Business AI, Business Clouds, and Business Technology.  We help organizations grow, innovate, become more efficient and effective, and do so in a trusted and secure way – through Information Management.

For more information about OpenText (NASDAQ/TSX: OTEX), please visit us at www.opentext.com.

Connect with us:
OpenText CEO Mark Barrenechea's blog
Twitter | LinkedIn

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 © 2025 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 are the key features of OpenText's Private Cloud enhancement announcement?

OpenText's Private Cloud offers dedicated single-tenant environments, customizable deployment options, end-to-end encryption, and comprehensive compliance support for standards like ISO 27001 and HIPAA. It includes data centers across key regions including Canada, UK, Germany, France, and Australia.

How does OpenText (OTEX) ensure data sovereignty in its Private Cloud?

OpenText ensures data sovereignty through strategically located data centers across multiple regions, allowing customers to choose where their data resides while maintaining compliance with local regulations like GDPR.

What industries does OpenText's Private Cloud primarily serve?

OpenText's Private Cloud is designed for highly regulated industries including financial services, healthcare, bio-technology, energy, and the public sector that require strict compliance mandates and secure data storage.

What AI capabilities does OpenText's Private Cloud offer?

OpenText provides Private AI Capabilities through OpenText Aviator for secure, in-country generative AI, and a Sovereign AI Data Cloud for managing sensitive data while maintaining compliance with local regulations.

Where are OpenText's Private Cloud data centers located?

OpenText operates data centers in Canada, UK, Germany, France, and Australia, allowing customers to maintain data within specific national borders for regulatory compliance.