Welcome!

@CloudExpo Authors: Zakia Bouachraoui, Yeshim Deniz, Dana Gardner, Pat Romanski, Gopala Krishna Behara

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Containers Expo Blog, Log Management, @DXWorldExpo

@CloudExpo: Article

Another Regulator Wants a Look at Autonomy’s Books

The FRC said its decision was taken following consultation with the Institute of Chartered Accountants in England and Wales

The Financial Reporting Council (FRC), a British accounting regulator, said on its web site Monday that it's launched an investigation into the financial reports Autonomy put out between January 1, 2009 and June 30, 2011 right before it was acquired for $11.1 billion by Hewlett-Packard.

HP charged the British company with cooking its books and duping it into overpaying when it wrote off $8.8 billion of its investment in November. It referred the case to the SEC, which called in the Justice Department, and the Serious Fraud Office in Britain.

Mike Lynch, the founder of Autonomy, has roundly denied HP's allegations. Lynch, who made a reported $800 million off the deal, claimed to welcome the FRC's investigation and said in a statement that "As a member of the FTSE 100 the accounts of Autonomy have previously been reviewed by the FRC, including during the period in question, and no actions or changes were recommended or required."

The FRC said its decision was taken following consultation with the Institute of Chartered Accountants in England and Wales (ICAEW).

The probe could take a while and its findings could go to a disciplinary tribunal for a public hearing. It made no mention of Autonomy's auditors, Deloitte.

Lynch isn't spending all his time with the lawyers working out a defense. Instead he and some of the boys from Autonomy - evidently all of the old management team - have turned venture capitalist at a new firm they've set up called Invoke Capital Partners.

They've raised an initial £1 billion ($1.56 billion) from private equity and sovereign wealth funds as well as well-heeled individuals, according to the Telegraph.

Lynch means to bankroll ever-so-clever UK start-ups - mostly the Cambridge University lot - so they can kick off and develop their technology then give them more money so they can acquire big companies and turn into multibillion-dollar operations rather than the other way around like his Autonomy experience, which he found "difficult."

The idea is to prevent them from being picked off in their salad days by investors looking for a quick return on their R&D.

Lynch has already reportedly put money in an Autonomy-like Cambridge spin-out called Featurespace, whose software is supposed to detect when online users are about to churn. Its algorithms are also supposed to prevent fraud.

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.


CloudEXPO Stories
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed how this same philosophy can be applied to highly scaled applications, and can dramatically increase your resilience to failure.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by sharing information within the building and with outside city infrastructure via real time shared cloud capabilities.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading these essential tips, please take a moment and watch this brief video from Sandy Carter.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a member of the Society of Information Management (SIM) Atlanta Chapter. She received a Business and Economics degree with a minor in Computer Science from St. Andrews Presbyterian University (Laurinburg, North Carolina). She resides in metro-Atlanta (Georgia).