Oracle Shakes Up Software

The multiple theories highlight the rapid change in the enterprise software market. As recently as April, many software companies were in the doldrums, marooned by the stagnant winds of IT spending. And warnings of missed quarters dominated the financial news for a week. But more recently, software stocks have rallied substantially, even without a solid indication that the end of the slowdown is in sight.

Smaller software companies, such as Mercator Software(MCTR Quote), Vitria Technology(VITRD Quote), SeeBeyond Technology(SBYN Quote) and Iona(IONA Quote) also could be for sale.

"These companies have been a target for some time, but no one had the appetite so far," said Erick Brethenoux, vice president and software analyst at Lazard. Mercator, he said, could well be the first to go, while Vitria would be a close second. Staff Writer Bill Snyder contributed to this report