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City of Alameda Plans to Spend $205,000 with “Vaporware” Company

The City of Alameda plans to spend $205,000 with Autonomy, the company accused of swindling Palo Alto-based computer giant Hewlett Packard in a $8.8 billion accounting scandal.

The initial cost to purchase Autonomy’s iManage Document Management system is not to exceed $205,000. Another $95,000 is to be spent on three consultants’ contracts for design, planning, installation and training.

The City of Alameda would then spend another $30,000 per year for ongoing annual maintenance and upgrades.

The Autonomy scandal broke last year when Hewlett Packard CEO Meg Whitman announced the company was writing off 80 percent of the $11 billion purchase price for Autonomy, and accused former Autonomy executives of “accounting improprieties, misrepresentations and disclosure failures to inflate the underlying financial metrics of the company, prior to Autonomy’s acquisition by HP.”

Forbes magazine characterized Ms. Whitman as admitting to having $8.8 billion worth of “vaporware.”

Hewlett Packard (HP) acquired U.K.-based Autonomy in 2011.

Forbes characterized Autonomy’s sale to HP as a “swindle” and wrote that Autonomy was “an $11 billion software company with an overhyped flagship product that was literally being given away because customers didn’t have a use for it.”

City Manager John Russo indicates in his report to City Council that the iManage system “is necessary in order to manage, archive, and retain the City’s electronic files, as well as improve access to an utilization of information.”

An un-named source, referring to Autonomy’s core Intelligent Data Operating Layer, told a Forbes staff reporter, “It’s the primary smoke and mirrors that Autonomy has used to make people think they’ve got something very impressive. It’s a fancy search engine.”

The issue comes before Alameda City Council on April 2nd.

3 comments to City of Alameda Plans to Spend $205,000 with “Vaporware” Company

  • Jonathan Butts

    For the life of me I cannot understand why the city of Alameda would spend this kind of money on a Document Management System from Autonomy when Perforce, a globally established leader in document management and security is based right here in Alameda.

  • Dennis

    Dig deep enough, and I am sure that you will find that somebody is related to somebody!

  • meysha

    Seldom do you have to even dig very deep to find the relationship!