Autonomy Founder Mike Lynch Stepping Down From HP
Hewlett Packard acquired Autonomy for $10.3 billion in August 2011 under Leo Apotheker’s watch. Autonomy was profitable at the time of their acquisition, but under HP’s umbrella the company has seen significant declines in their licensing revenue. Autonomy founder Mike Lynch is now stepping down and he is being replaced by HP chief strategy officer and EVP of enterprise software Bill Veghte. In HP’s Q2 earnings release, the company said that this is being done to improve Autonomy’s performance. Below is a clip from the company’s earning announcement — I have bolded the part about Autonomy.
HP expects to reinvest savings in each of its business segments to strengthen their ability to stay ahead of customer expectations and capitalize on growing market trends.
— HP will invest in research and development to drive innovation and differentiation across its core printing and personal systems businesses, as well as emerging areas. It will also invest in marketing, sales productivity and tools that simplify the customer experience and make it easier to do business with HP.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry
— Services will invest in accelerating service capabilities in the high client value areas of cloud, security and information analytics by enhancing HP intellectual property. Services will also strengthen its industry orientation and continue to differentiate its service offerings through quality and innovation delivered to clients. Combined, these activities are expected to shift the portfolio to a more profitable mix of higher-growth services. Additional work in lean process methodologies is expected to better serve clients and increase overall efficiencies.
– Software will invest to speed development in the areas of security, big data and the management of application lifecycle and infrastructure solutions, both on premise and in the cloud. It will also further leverage the capabilities of Autonomy and Vertica across the entire HP portfolio.
— Enterprise Servers, Storage and Networking will invest to accelerate its research and development activities to extend its leading portfolio of servers, storage and networking. Together these assets create a Converged Infrastructure which is the foundation for top client initiatives such as cloud, virtualization, big data analytics, legacy modernization and social media.