Technology giant Hewlett-Packard Co. closed a $12 billion deal to acquire British-based software company Autonomy Corp. on October 3, raising skepticism about the company’s direction and future. Autonomy provides services and technological capabilities in looking through unstructured data while HP specializes in technology hardware.
“HP seems to go back and forth with a lot of strategic indirection,” said research professor Sandor Boyson of the Smith School of Business. “How [Autonomy’s capabilities] will be integrated into what HP does is unclear.”
After HP announced their plans to explore alternatives of its personal computer business and the plans to acquire Autonomy, its share prices dropped 20 percent.
“I’d say that right now people are up and arms because of HP’s lack of focus and lack of ability,” said Tyser Teaching Fellow Clifford Rossi. “I’m not opposed to HP [acquiring Autonomy] but I’m not convinced this deal was that fighting moment that will take HP to a completely different level.”
Autonomy will operate as a separate company from HP, and Mike Lynch will continue to head the company, according to a press release from HP.
“I don’t think HP has enough depth in their management to thrive in the software and service sector,” said a computer science professor Rance Cleaveland. “I think they’re paying too much and I don’t know how HP is going to make money off the acquisition.”