There's no Money in PCs
Considering you can pick up a top end desktop for less than US$ 1,000, that is probably true. And if the rumors are true, then HP wants to rid itself of this dwindling market for something more lucrative and exciting, like information management software.
According to an article in Bloomberg, HP is in talks right now to acquire enterprise information giant, Autonomy -- one of the last of the old boys in the the Enterprise CMS space -- for approximately US$ 10 billion.
Chief Executive Officer Leo Apotheker has said he wants to expand in software and services that help customers deliver computing over the Internet, through the so-called cloud.
Information Management is the Flavor of the Day
Enterprise information management solutions are in big demand and Autonomy is one of the biggest and most known vendors in the space. Of course, they are more known for their own acquisitions (the latest of which was Iron Mountain), building their own empire, not for being an acquisition target.
There's no doubt that cloud-based services and information management solutions are where a lot enterprise dollars are flowing these days, so it does seem the right move for HP to take a firm focus here.
But is it the right move for Autonomy? HP is more synonymous with hardware, not software like Autonomy offers, although it does offer its own portfolio of information management products, which include HP Trim.
How will it all integrate together? Will Autonomy loose its "autonomy"? Is the rumor really true? If it is, we should hear by the end of business today. Probably right around the time HP announces its quarterly earnings.
We're excited? Are you?