Is this a sign of more consolidation in the software industry? In a move that may foreshadow further consolidation in the software industry, U.K.-based Autonomy has announced the acquisition of content management firm Interwoven for $775 million. While this is a large deal and a significant 36 percent premium over the current share price, as Matt Asay has pointed out, it’s still a pretty modest three-fold valuation of the company’s $250 million in trailing 12 months revenue.For Autonomy, it’s a good move and will strengthen their overall product portfolio. And for IWOV shareholders, it’s not a bad outcome. But you have to wonder why management would accept an offer at this time unless they felt that their own prospects as an independent company were limited. Autonomy has raised an additional 223 GBP to fund the deal. What do you think? What other companies look like they may be consolidated in the next year? Open Source