Autonomy was one of the larger purchases for HP in its reportedly $24billion of acquisitions last year, and now board members at HP are seriously questioning the level of due diligence that was undertaken prior to the purchase. HP accounting teams have been congregating in the boardrooms of the global leader in enterprise servers and storage to determine whether price inflation and valuation manipulation occurred months before HP made a bid. A group of HP insiders is claiming that Autonomy management were aware of and actively participated in company valuation inflation tactics prior to HP making its intentions public.

This will undoubtedly lead to months of legal wrangling between the parties, but early signs of the impending battle come from ex Autonomy CEO Mike Lynch who in a statement said

"I'm not going to be HP's scapegoat for the fact that the company is in utter disarray"

Rival tier 1 vendors in the servers and storage market watched as HP walked into a brave new world of acquisitions in 2011/12, and many are now asking whether they went a step to far. No doubt rivals will use this moment to strike back at HP and try to claim back market share while HP deals with this current crisis. Only time will tell how this situation pans out for HP, and perhaps they need to focus their sales strategy on innovating and leading the space for which they are the market leader rather than dip their toes into markets they are yet to understand. For the complete story check here,  ChannelWeb News