Micro Focus Guides Enterprises into the Digital Transformation Era

SUNNYVALE, CA – January 28, 2019 – Micro Focus (LSE: MCRO; NYSE: MFGP) today announced a critical milestone in a years-long effort to create and deliver solutions that help organizations transform their business in accordance with rapidly evolving IT requirements. By combining industry-leading software and domain expertise in four core areas – Enterprise DevOps, Hybrid IT Management, Predictive Analytics and Security, Risk, and Governance – the company is now uniquely positioned to deliver on all critical aspects of enterprise digital transformation to help customers innovate faster with less risk.

According to two recent reports from Gartner, there are indications that Digital Transformation is a priority in 2019:

• "Growth is the number one priority for CEOs, and many see digital business as the primary means of achieving its growth objectives. Only 33% of enterprises have managed to reach the scaling stage of digital business." Getting to the Details of the Digital Platform: A Gartner Theme Insight Report, Bill Swanton, December 7, 2018
• "Only 4% of organizations have no digital initiative at all, which signals a shift from digital as an option to digital as a mainstream platform." Smarter with Gartner, "CIO Agenda 2019: Digital Maturity Reaches a Tipping Point", October 16, 2018

"Digital transformation is forcing organizations to look at IT from more perspectives than ever before, as an effective strategy spans many different - previously disconnected - technology disciplines and investments," said Tom Goguen, Chief Product Officer at Micro Focus. "Leading organizations today are looking for complete sets of solutions to achieve greater speed and agility, supported by a high level of protection and an advanced analytics ecosystem, to balance managing the top and bottom lines without the added risk of starting from scratch. Through a concerted effort that combines M&A and an aggressive R&D agenda, Micro Focus is now in a position to deliver on this promise."

Micro Focus has built solutions that target the four areas most critical to lasting Digital Transformation Success:

1. Enterprise DevOps—Build and deliver better software faster
   Winning the race to innovate requires a high-speed approach. Micro Focus solutions unleash the power of DevOps across the hybrid IT landscape, quickly bringing innovative ideas to life at the pace of business to securely deliver high quality software and services faster.
2. Hybrid IT Management—Run and transform
   IT Infrastructure, services and even purchasing models are rapidly evolving.  Maximizing business value and accelerating outcomes compels organizations to find new ways to extend existing investments and take advantage of new platforms – from containers to public clouds to iOT. Micro Focus solutions help organizations run IT Ops at the speed of DevOps, delivering services on demand and generating operational and business insights, all while helping organizations address security, compliance and governance requirements.
3. Predictive Analytics—Analyze in time to act
   Data lakes are valuable only if the business can surface the insights hidden within its depths. Micro Focus helps leverage machine learning to transform unlimited volumes of data into accurate, actionable, automated insights at the speed of your business. Be in a position to make predictions and influence business outcomes quickly and efficiently with comprehensive and relevant real-time intelligence.
4. Security, Risk, and Governance—Secure what matters most
   Cyber threats are escalating. Aging apps and processes (along with new ones) are full of unforeseen risks. Privacy and compliance requirements are mounting. Micro Focus provides the industry's broadest set of integrated security, risk, and governance solutions, with an analytics-driven approach to securing what matters most - identities, applications and data.

By delivering a holistic set of solutions that can be integrated together and with existing legacy systems, Micro Focus has differentiated itself by better matching the current and future enterprise IT reality – all in a market largely dominated by point solutions that are often not interoperable and only address a specific portion of collective IT needs. The breadth of the portfolio, depth of enabling analytics and proven ability to protect the organization's most important assets gives customers the confidence they need to transform their business on their own terms, no matter where they are in the IT lifecycle. The end result is greater speed and flexibility with lower overall risk.

This announcement follows a number of deliberate steps over the past 24 months to round out Micro Focus' digital transformation capabilities. In order to deliver on the wide-ranging and complex requirements, the company pursued a two-pronged strategy. One step has been to strengthen the company's overall portfolio through M&A. The acquisition of HPE software was an important first step to strengthen the company's overall bench, and subsequent acquisitions have added further depth while at the same time previously announced divestitures have allowed the company to stay focused on its core strategy without negatively impacting customers. At the same time, the company has been executing on an aggressive product development strategy – such as launching a modernization approach for core business systems and announcing new data protection solutions for virtualized and Hybrid IT environments – to evolve its offerings and align to this overall strategy.

More Information

For more information on Micro Focus's Enterprise DevOps, Hybrid IT Management, Predictive Analytics and Security, Risk, and Governance solutions, visit here.

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About Micro Focus

Micro Focus helps organizations run and transform their business through four core areas of digital transformation: Enterprise DevOps, Hybrid IT Management, Predictive Analytics and Security, Risk & Governance. Driven by customer-centric innovation, our software provides the critical tools they need to build, operate, secure, and analyze the enterprise. By design, these tools bridge the gap between existing and emerging technologies—enabling faster innovation, with less risk, in the race to digital transformation.