HP buys autonomy for software and cloud

August 18, said Hewlett-Packard has announced $10.25 billion in cash to buy the UK's second largest software company http://www.aliyun.com/zixun/aggregation/14422.html ">autonomy." Hewlett-Packard CEO Lee Leoapotheker said it would expand to software and cloud computing services and plan to divest the Low-margin PC business.

At the moment, Hewlett-Packard has a cash reserve of 12.9 billion U.S. dollars, the cash acquisition for HP is a huge cash expenditure, a large acquisition will enable HP to face the lowest cash reserves in recent years.

Why did HP gamble on autonomy?

In Thursday, at the q&a meeting of investors and analysts, Hewlett-Packard CEO Apotheker said that while the acquisition of autonomy was bold and risky, the value of the deal would be slowly reflected in the long run.

The main reasons are as follows:

This is the best time to buy. Apotheker said that one might question why HP risked betting on autonomy, but the era of change requires innovative initiatives.

"This is due to the future positioning of HP, the acquisition is to pave the road for HP's future positioning, these changes are what we want to happen, at present, HP is at a critical turning point." "said Lee Ai.

Acquisitions favor coping with the big Data age. Founded in 1996, Autonomy is a British technology company that provides high-end search engine software for companies, and is now the second largest software company in the UK, and is recognized as the industry leader by analysts such as GartnerGroup, Forresterresearch and Delphi. Now that many companies need to deal with a large amount of data a day, and Hewlett-Packard does not have a line to deal with big data, the acquisition of Autonomy will be a big help to HP's response to the upcoming data explosion.

"Autonomy to HP to show a broader and growth potential of the market space-enterprise information management." The acquisition of Autonomy will make HP the leader in the Corporate information management field. "said Lee Ai.

The combination of autonomy and HP creates greater value. Apotheker pointed out that autonomy in the last five years of the composite growth rate of 55%, operating profit rate of 83%. "We are acquiring a very strong business, and the combination of atonomy and HP will create greater value." That's why high prices are buying. "said Apotheker.

Apotheker has a passion for software. Li Ai joined hp 9 months ago as CEO. For the past 20 years, Apotheker has played various roles in the German software company SAP. "As a professional manager who spends most of his career in the software industry, I know the software industry best." "said Lee Ai. At the results conference, Apotheker said that the acquisition of autonomy put him in a comfortable environment.

At the results conference, some people put pressure on the purchase price to Lee Ai, "such a price is simply unbelievable," said Bernstein analyst Sacconaghi. But they all think it would be a good opportunity for HP to move to a broader market like corporate software management. But whether future earnings will make up for the huge cost of buying now can only be explained by time. (Lu Guang)

(Responsible editor: The good of the Legacy)