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FileNet CEO Sees 'Huge Market Opportunity'

Lee Roberts says demand for the company's ECM software is the highest it's been in the past five years.
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In an

exclusive interview


"StreetWatch" Webcast,



Chairman and CEO Lee Roberts said that in the past five years he has "never seen the amount of demand and interest" as the company is now experiencing.

The demands of Sarbanes-Oxley requirements are "absolutely" an important driver of the increased demand for FileNet's enterprise content management software, but the increase is "broader than compliance" issues, Roberts says, suggesting corporate IT spending is making a comeback.

About $1.5 billion of enterprise content management, or ECM, software was sold in 2004, and the projections are for the business to grow to $9 billion per year by 2010. "There is a huge market opportunity" for FileNet, he says.

FileNet shares, which have risen more than 35% since late April, were recently down 2.75% to 28.20.

Regarding speculation that FileNet could be an attractive takeover target to larger firms such as






, Roberts says, "Our objective is to remain an independent company and grow," adding, "We have every opportunity to be a $1 billion company in our own right."

Much of the M&A speculation stems from



acquisition of Documentum over a year ago. Asked how that deal has changed the competitive environment, Roberts says it has had a positive effect on FileNet, in that "other storage companies are now coming to us as a counter to EMC."

In fact, FileNet will be making an announcement next week about an "alliance with multiple storage vendors," Roberts says, declining to specify which ones.

The full video interview can be

found here