HP Acquires Autonomy. Investors Put on a Happy Face

October 4, 2011

A news release whizzed by on October 3, 2011, bearing happy tidings to Autonomy stakeholders. The deal with Hewlett Packard has been consummated. The news release asserted:

The acquisition positions HP as a leader in the large and growing enterprise information management space. Autonomy’s software offerings power more than 25,000 customer accounts worldwide and, as part of HP, will provide high-value business solutions to help customers manage the explosion of unstructured and structured information. Autonomy offers solutions that are complementary across HP’s enterprise offerings and strengthens the company’s data analytics, cloud, industry and workflow management capabilities.

Now with Ms. Whitman at the helm and Autonomy in the HP flotilla, will the company be able to generate the revenue required to pay for the “meaning based computing company.” I don’t have a clue. HP has some interesting challenges, but it has some big money units, including the ink business. I also think the print on demand unit has some potential, and the company desperately needs an improved findability solution for that unit as well as the HP Web site.

Fascinating to consider what HP can do. Microsoft paid $1.2 billion for Fast Search & Transfer. After three years, Fast Search is more or less a freebie for customers who buy oodles of client access licenses and jump on the SharePoint bandwagon. What will HP do with Autonomy? Make lots of money quickly is presumably one goal. We will monitor the trajectory of the deal because we think Mike Lynch could be the person to push out Ms. Whitman and get Autonomy managed effectively. Mr. Lynch is associated with search, but I think he is a much under-rated senior manager. HP could be the platform he needs to allow his skills to be showcased on a larger stage. Some “real” consultants who failed at being Web masters, home economics majors, and students of 18th century poetry will doubt my confidence in Mr. Lynch. Well, that’s why I am a big wheel in rural Kentucky and the “real” experts hang out in the world’s watering holes, not a pond filled with mine run off. Oh, the real consultants are not counting their billions as is Mr. Lynch I surmise.

Stephen E Arnold, October 4, 2011

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Comments

One Response to “HP Acquires Autonomy. Investors Put on a Happy Face”

  1. Top 12 News Today » The Market Has Spoken On HP’s Grand New Plan (HPQ, CRM, EMC) – San Francisco Chronicle on October 9th, 2011 1:57 pm

    […] Hewlett-Packard did a bunch of things today: Bought a large, profitable, fast-growing enterprise so…rowing and most promising business, which is selling combinations of hardware, software, and consulting services to large enterprises Said it was considering new options for another ailing business, PCs, which has shown declining revenues for the last three quarters, particularly to consumers. Those options might include spinning it out into an independent company. The market's verdict? […]

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