What was the principal problem associated with Hewlett Packard's acquisition of Autonomy Software?

The principal problem associated with Hewlett Packard's acquisition of Autonomy Software was the failure of HP management to conduct proper due diligence. In M&A transactions, due diligence is a critical process where the acquiring company investigates and evaluates the target company's business, financials, operations, and technology. In the case of HP and Autonomy, there were significant issues regarding the accuracy of Autonomy's financial statements and the valuation of its technology, which HP later claimed were overstated.

This lack of thorough due diligence led to HP overpaying for the acquisition and subsequently writing down the value of Autonomy by billions shortly after the purchase. The consequences highlighted the importance of an effective due diligence process to uncover any potential liabilities or discrepancies and ensure that the acquiring company is making a well-informed decision.

While the other options address various aspects of business operations or strategy, they do not encompass the central issue of due diligence that ultimately affected the deal's outcome and HP's financial position.