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Autonomy paid its own customers to pump up revenues, claims HPE

Jellied Eel Silver badge

I don't get that either. Or this bit-

"the practice of buying and selling hardware at a loss with a view to revenue pumping, to reflect revenue which in fact is obtained by selling hardware at a loss which wasn’t disclosed".

That's also something I'd have thought easy to spot in the accounts, so revenue from hardware sales vs cost of buying that hardware.. Especially as it would seem to have needed a LOT of tin. And some financial engineering, because part of Autonomy's attraction was very high margin claims. Selling a lot of tin at a loss would (or should) obviously impact that.

I also don't necessarily see anything wrong with reselling naked tin. Waay back, I worked for a company that sold Internet appliances. Appliances we sold direct were obviously bundled, but we also supplied seperate hardware and licences so our resellers/VAR's could build their own systems. We had confidence the licences would work on the tin we supplied, and also increased our volume so we got better prices on that tin. Difference I guess is we were very much focused on margin rather than revenues, so didn't want too much volume reselling the tin.

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