HP Autonomy Problem Larger than Accounting Snafus?

January 11, 2013

Nigel Cannings at The Global Legal Post believes HP has a more crucial Autonomy-related problem than one of financial analysis, we learn from his article, “HP and Autonomy—Lacking the Innovation Sauce.” Cannings asserts that HP’s real issue is one of squashing the potential of the company it just purchased. He writes:

“My father is a 45-year veteran of the software industry and a serial entrepreneur. His last business was acquired for a substantial sum by a North American company, so he was speaking from experience when he commented: ‘When will these large corporations learn the three golden rules of acquiring an entrepreneurial company? First, work out what it was that made it so successful and bottle it. Second, tie in the technical and marketing resources that achieved that success. Third, allow the founders to do what they do best — don’t try to reinvent them.’

“HP has ignored these rules.”

Cannings argues that had HP stayed out of the way of Autonomy’s Mike Lynch and his team, the investment would have paid off handsomely. Instead, not only did the tech titan level their startling accounting charges, they are focused on the wrong aspect of their asset. While HP seems intent on pursuing the voice retrieval technology, they would do better, he says, to go after co-processer—fueled supercomputers. This, he insists, is the path to maximize profit from the Autonomy buy. Navigate to the article to see how he makes his case.

Cannings also says that this failure is a symptom of HP’s larger lack of innovation. Specifically, he charges, the company lacks the drive to re-innovate frequently, a quality that helped propel companies like Oracle, Apple, Microsoft, and IBM to the heights of success. Is HP on the road to mediocrity?

Cynthia Murrell, January 11, 2013

Sponsored by ArnoldIT.com, developer of Augmentext

Comments

One Response to “HP Autonomy Problem Larger than Accounting Snafus?”

  1. DonW1234 on January 12th, 2013 4:33 pm

    Just the view of an outside observer of the HP / Autonomy soap opera.

    It would seem that either HP was either bambozeled into making a bad deal or that they just don’t realize the value of the company they have purchased.

    I don’t know which is true, perhaps a bit of both.

    What I do know is that the public washing of this laundry does nothing for HP’s reputation and the value of the acquisition to HP.