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Five reasons why iManage DMS is dancing in the streets following the departure of Mike Lynch from Autonomy

Given all the alarms and excursions following yesterday’s announcement of the departure of Mike Lynch, the founder & CEO of Autonomy, and widespread redundancies at the HP Autonomy group, we’ve been doing some digging into what this means for the legal sector – and in particular the iManage document management business. And the short answer is: there is dancing in the iManage streets!

Our sources reveal that…

(1) it was long expected that Lynch would depart with his £800 million after a suitable (about a year in his case) transitional period

(2) that the HP Autonomy group in general is in the throes of a major restructuring and that staff are braced for further upheavals over the next 12 months

(3) that while he was still running the Autonomy division for HP, Lynch was primarily concerned with keeping costs down – which also meant limits on R&D budgets

(4) there are no staff cutbacks in either the UK or US iManage teams – in fact Dan Carmel, who was a VP with the DMS business in its independent and later Interwoven days, has rejoined the company

(5) because the iManage DMS business is part of the most profitable division of Autonomy, the business has been green-lighted for more resources and expansion


5 replies on “Five reasons why iManage DMS is dancing in the streets following the departure of Mike Lynch from Autonomy”

Here’s hoping this is the case. Point 3 makes perfect sense looking back on the last couple of years so hopefully point 4 & 5 will see some real movement now.
However there have been a few false dawns and unfulfilled promises for Legal since the Autonomy takeover, so I won’t bet my house on this just yet!

What rubbish…did the iManage team just take out a new ad block on Orange Rag?

Please direct your attention to the transcript of Meg Whitman’s speech at the HP shareholder’s meeting this past March:

“Seventy percent of our revenue comes from hardware. It’s the core of who we are.”

“We should stand up and be proud to be a hardware and infrastructure company.”

“We’re not in the software business to transform ourselves into a software company.”

The second quote is the most interesting one to me, but they are all very clear about who HP wants to be and where they are going to invest….and it isn’t going to be in a legal document management team regardless of how profitable they may be as you suggest in point 5. The reason they’re so profitable is because the company has already stripped them down to the bone. Do you really think they’re all of a sudden going to reverse that and make them less profitable? Especially when the larger company is struggling so much? We are not going to see increased investment in the iManage product any time soon. The biz has been streamlined, is operating at a high margin (as you point out), and they’ll want to keep it that way. Innovation will now only come in the narrow channels of bandwidth that the remaining team can find. Not sure that’s something I’d be dancing about if I was an iManage rep or engineer.

Sadly neither iManage (nor OpenText) advertise with us – not that it would have made any difference. And if that was an OpenTexty making the last comment, stop fighting old wars. You my still be obsessed with the DOCs versus iManage debate but the rest of the world is looking at a SharePoint & Cloud-based DMS versus ‘traditional DMS providers’ debate …CC

Sorry Charles, can’t say I’m an OpenTexty and provide your site that fun drama 🙂 I am a past iManage user and now use one of your aforementioned cloud based systems satisfactorily. I was just having trouble getting my head around why you would publish a piece so obviously aimed at pumping iManage when there are so many public statements/facts that would fly in the face of your five. Just my opinion, but this piece seemed just a little bit to one side of ‘objective.’

Then that’s fair enough – and I apologise for impuning your integrity in suggesting you were an Open Texty. (Tho it would have been fun if you were.) However I do think there are a number of different issues here – the core iManage DMS business – the Mike Lynch saga – and the ongoing upheavals at HP – that are getting muddled together.

The key is if under the new regime iManage is left to get on with its knitting – tho I suspect, as others have suggested, that ultimately iManage will be spun back off into the wild as it probably doesn’t belong in an organisation like HP. And by then it may be academic if cloud and Sharepoint DMS platforms start to take off.

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