Some people I've talked with about the HP leak scandal say it's little more than insider baseball, in which only HP investors, emotional analysts and the press care about. I understand their position, but I disagree and believe this case will have far-reaching ramifications for everyone who touches HP and corporate America. This is no different than when The New York Times broke the story on how the Bush administration was eavesdropping on citizens' phone calls in the name of national security.
If a corporation--either implicitly or explicitly--condones spying and the seemingly illegal means of obtaining information against journalists and its own board members, anyone in the corporation's community is at risk of being a target.
News leaks are routine, no matter how hard you try to control the flow of information. Like any media organization, VARBusiness routinely hears tips, scuttlebutt and rumors about companies we cover. These often come with qualifiers, such as, "I'm not sure how true this is...," "You didn't hear this from me..." or the ubiquitous, "This is off the record."
Whether you're the White House or HP, no organization likes leaks, but they're part of the health and welfare of our economy. Leaks with legitimacy help keep people informed and organizations honest. By trying to contain bad news rather than getting out in front of it, HP and companies like it exacerbate their positions. Read the news accounts about the unraveling HP scandal, and you have to hunt for the reason behind the investigation. The story now and will continue to be how HP possibly broke the law, spied on nine journalists and, ultimately, violated the trust of its own leaders and unaffiliated third parties.
If HP felt justified in spying on the vaunted Fourth Estate, what would have prevented it from spying on its partners? There are no allegations or evidence that HP eavesdrops on its solution-provider partners, but this scandal is rapidly eroding the trust anyone would have in HP.
Hurd, who is credited with turning HP around after the Carly Fiorina era, will hold a press conference later today. He must address not only why HP took the actions it did, but what it plans to do to repair the damage and restore the trust of its partners and customers.
And, while state and federal officials determine whether any laws were broken, we should all hope that lawmakers use this opportunity to tighten the statutes to ensure non-governmental agencies are bared from this unthinkable conduct.
Check for a post-Hurd press conference update this afternoon on VARBusiness.com.