Welcome!

Recurring Revenue Authors: Elizabeth White, Yeshim Deniz, Zakia Bouachraoui, Pat Romanski, Xenia von Wedel

Related Topics: Containers Expo Blog, Java IoT, Industrial IoT, Microservices Expo, Recurring Revenue, Log Management

Containers Expo Blog: Article

Autonomy Was Shopped to Dell As Well As Oracle

HP wound up buying the joint for $11.3 billion late last year and writing off $8.8 billion last month

Autonomy is more shopworn than we knew.

Michael Dell confided to a reporter from Britain's Sunday Telegraph this weekend that, like Oracle, he was offered the UK software company before HP bought it.

Michael said he quickly passed because it was "overwhelmingly obvious" that it was overpriced and that "any reasonable person" would have come to that conclusion.

HP wound up buying the joint for $11.3 billion late last year and writing off $8.8 billion last month when it charged Autonomy's old management team with cooking the books and called in the FBI, the SEC and the UK's Serious Fraud Office.

Of the $8.8 billion total, $5 billion was attributed to "improprieties" in Autonomy's accounting.

Dell said he was very surprised at the size of the premium HP was willing to pay. "The premium that you pay is in some way a measurement of the risk that you're willing to take on. If you pay a small premium relative to the market's then current opinion, you are actually not taking on very much risk, but if you pay an unbelievably large premium, you are taking on an unbelievably large risk," he said.

At the time the stock market valued Autonomy at roughly $5 billion.

When HP announced the deal last year Oracle CEO Larry Ellison was quick to say that Autonomy had been shopped to him too. Autonomy founder Mike Lynch denied it and Oracle retorted by coming up with two slide decks that were run up by Autonomy's banker Frank Quattrone and issuing a press release that said, "Either Mr. Lynch has a very poor memory or he's lying."

The Lynch-Quattrone story eventually became that Quattrone approached Oracle independent of Lynch.

Hmmm.

Now the CEO of Dell is saying the same thing Ellison said. He didn't think it was worth the price asked let alone what HP paid.

Forbes figures the amount HP is writing off is round about the premium it was gulled into paying.

All Things Digital says the Dell disclosure on top of Oracle's makes things uncomfortable for Lynch because "as a British company, it would have been illegal for Autonomy to be ‘shopping' itself around to potential buyers without first disclosing the fact to shareholders, though rumors that it was in play had been making the rounds since late 2010."

The blog also jumps to obvious conclusion: HP's then-CEO Léo Apotheker was spooked into overpaying at the mention of meetings with Dell and Oracle for fear of a bidding war.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...