The CEO of Canadian software company OpenText Corp. said his business is benefiting as companies stretched by inflation and labour challenges try to digitize and automate their operations.

OpenText reported revenues for their second quarter were up 2.4 per cent, while cloud revenues increased 12 per cent.

“That growth in the cloud is a continuing need to digitize, and the digitalization factor is being driven by inflation, can't find talent, the need to better automate, to find new ways to get security you can trust,” Mark Barrenechea said in a television interview with BNN Bloomberg on Friday.

“We're continuing to see very strong demand in our cloud technologies.”

He said the “war on talent” is still ongoing, with OpenText still planning to expand with hundreds of engineering sales roles.

At the same time, he expects artificial intelligence programs like OpenAI will “displace a lot of roles out there,” noting that OpenText plans to expand more into artificial intelligence.

Despite the challenging economic conditions that have driven businesses to OpenText’s products, Barrenechea said his business remains focused on a “total growth” model, including through acquisitions.

Earlier this week, OpenText announced it closed its acquisition of Micro Focus International plc for almost US$6 billion, and it expects to “balance the combined company through an approximate eight per cent workforce reduction.”

With files from The Canadian Press.