"The management structure, control and systems at Autonomy are more representative of a start-up than a major global player. The senior management team is talented but lacks bandwidth. This can lead to some decision paralysis as middle management is sometimes limited in its autonomy."

"Autonomy still manages a very flat structure with a tight chain of command into the CEO and CFO," he went on. "Although they have managed this structure effectively to date, we believe the business is becoming too big and time is now becoming the limiting factor. There are after all only 24 hours in the day and 90 days per quarter."

Geall also criticised Autonomy's sales teams, claiming they were "hunters, not farmers" and not suited to nurturing customers, as the focus inevitably shifts from winning new deals to recurring business.

The deal with HP potentially answers some of this criticism. Autonomy will have access to HP's general management expertise and. More importantly access to HP's 28,000 strong sales force. However, Holway also commented, "When US companies take over UK software houses. There are no happy endings."