Autonomy and HP: That Was Fast
November 20, 2012
I like to point out that making money via search and content processing is a challenge. Not long ago, an investment bank’s 30 somethings told me, “We can figure this search stuff out.”
Don’t hold your breath.
I just learned that HP is not too happy with Autonomy’s accounting or business model. Hmmm. Isn’t the time to be unhappy before one writes a check for $10 billion? Call me old fashioned, but caveat emptor.
Navigate to “HP Takes $8.8B Charge on Autonomy ‘Improprieties’”. The write up asserts:
Hewlett-Packard took a massive charge related to its purchase of Autonomy and indicated that it bought the company based pumped-up and fraudulent accounting. In its fourth-quarter earnings report, HP recorded a charge of $8.8 billion in its software unit.
When I read this, I thought of the old chestnut attributed to either a cartoon character or a baseball professional, “It’s deja vu all over again.”
I never buy printer ink unless I check first. I assume the same prudence might apply to buying a search and content processing vendor.
Is there fix? Yep, the goose floats quietly in the pond awaiting the call.
Stephen E Arnold, November 20, 2012