Enterprise Software's Dating Game

With tech multiples drifting south and enterprise software vendors hoping to woo IT managers with more comprehensive offerings, analysts are expecting a new wave of consolidation to ripple through the industry.

Smallish application and tool vendors, including Borland (BORL Quote), Brio (BRIO Quote), i2 Technologies (ITWO Quote), Stellent(STEL Quote) and Retek(RETK Quote), are potential targets -- at the right price.

But large companies like BEA Systems (BEAS Quote) and Siebel Systems(SEBL Quote) also could be attractive if their multiples go down. After all, IBM(IBM Quote) spent $2.1 billion to buy Rational Software late last year, its largest acquisition since purchasing Lotus Development in 1995. ...