HP Tries to Stem Autonomy Exodus after Founder Goes

May 26, 2012 09:38 AM EDT

Share This Story

  • Print
  • Email

(Reuters) - Hewlett Packard Co has told staff at Autonomy they have a bright future even after founder Mike Lynch was shown the door on Wednesday, joining a long line of top managers to leave the Cambridge-based software maker since HP bought it last year.

Follow us

HP Chief Executive Meg Whitman said the group was committed to the success of Autonomy, bought by the world's No. 1 personal computer maker for more than $11 billion.

Autonomy has taken some of the blame for last quarter's disappointing performance at HP's software division, which fell short of HP's expectations.

Whitman said in an email ahead of speaking to staff yesterday that it was "always hard when a charismatic founder, who has built a great company leaves."

But Autonomy staff had a "very bright future" aft HP, she said. "While this will be a journey, I am confident we can do it together and I am committed to your success."

The Silicon Valley giant has stressed that Lynch's departure was down to the division's poor performance rather than the notion that Autonomy had no place in HP's corporate culture.

"There was a miss on the numbers," a HP spokesman said. "There's a discipline about financial responsibility for senior leaders in any organization. It was about bringing the executional skills to the business."

Some 15 to 20 percent of employees, about 250 people, had already left Autonomy since the deal was announced last August, including the chief financial, marketing and operations officers, said an Autonomy executive, who declined to be named.

Lynch, who had previously said Autonomy had a bright future within HP, will be replaced by HP's chief strategy officer Bill Veghte.

It is difficult to break out Autonomy's contribution to HP, but HP's software division revenue of $970 million in the second quarter of this year was lower than combined revenue of HP's division and Autonomy's a year ago.

HP said there had been a slowdown, although it was not an like-for-like comparison due to U.S. accounting rules, different revenue recognition timeframes and the shift to cloud computing, which delivered revenue over a longer period.

The Autonomy executive said it was not clear whether the shortfall was in the legacy HP products or in Autonomy products.

"Autonomy hadn't missed its quarterly earnings in 47 quarters or so, the fact that the second quarter was perhaps not as smooth is an indication that settling into the new processes was quite difficult," the person said.

Panmure Gordon analyst George O'Connor said HP had struggled with software, not just around Autonomy but in other sides of its software suite as well.

The Autonomy executive said there were problems in handling all the sales leads that were coming in. "We have had to do things the HP way and the HP way has proved to be cumbersome in getting deals done in time," the executive said.

Get the Most Popular Mobile&Apps Stories in a Weekly Newsletter

Copyright 2013 Thomson Reuters. All rights reserved.

Join Our Conversation

Smartphones
Motorola Nexus 6 with Android 5.0 Lollipop Google Nexus 6 UK launch reportedly delayed until December
Surface Pro 2 tablet quietly goes off sale on Microsoft Store
Samsung Galaxy S5 Plus ready to launch in Europe with Snapdragon 805
iPad Air 2 benchmarks praise A8X chip: ‘Fastest multi-core iOS device by a large margin’
Tablet / Laptop / PC
Dell Venue 7 and Venue 8 Dell unveils Venue 7 and Venue 8 Android 4.3 Jelly Bean tablets
Retina iPad Mini facing delays, may not launch until early next year
Refurbished 128GB iPad with Retina Display now available on the Apple Online Store
Samsung Galaxy Note 10.1 – 2014 Edition: Pricing and availability now official
Gadgets
Amazon Logo Amazon reportedly to launch ‘Firetube’ set-top box before 2013 holidays
Samsung Galaxy Note 3 and Galaxy Gear India launch: Pricing and availability
Samsung Galaxy Gear Android smartwatch now up for pre-order in Canada
Samsung Galaxy Gear 2 reportedly in the works already, may debut at CES or MWC 2014
OS / Software
HTC Logo HTC reportedly considering Android/Windows Phone dual-booting smartphone as Microsoft pushes for deeper Windows mobile integration
iOS 7 Chrome Incognito mode leaks private searches due to bug
Sprint HTC One Android 4.3 Jelly Bean already rolling out, AT&T, T-Mobile & Verizon to follow
Microsoft Windows 8.1 now available for pre-order
Internet / Social Media
Google Downtime Google blacks out for two minutes, causes 40 percent drop in world’s Internet traffic
Xbox Music web player is live and ready for Xbox Music Pass subscribers
Facebook Android app collected phone numbers even if users never logged in
Firefox 22 brings support for web video calls, 3D gaming, and Unreal Engine 3
What's App
Flipboard for Windows Phone Flipboard for Windows Phone finally available, but requires 1GB of RAM (VIDEO)
Vine gets major update, lets you upload previously-shot videos & more (VIDEO)
BlackBerry Messenger (BBM) finally hits Windows Phone – Available as a free download now
Instagram releases Bolt ephemeral messaging app in select markets to challenge Snapchat
Copyright © 2014 Mobile & Apps All rights reserved. mobilenapps
Real Time Analytics