Oracle Feels Squeeze

With annual sales of $12 billion and a $65 billion market cap, Oracle (ORCL Quote) doesn't get a lot of sand kicked in its face.

But Microsoft's(MSFT Quote) full-tilt push in the database market and SAP's(SAP Quote) continuing domination of the applications software market are threatening to squeeze Oracle and prompting investors to raise yellow caution flags.

The multipronged offensive by two of Oracle's chief rivals follows its own purchase of nine software vendors -- a spending spree with a price tag of $13 billion (net acquired cash) that includes PeopleSoft, Retek and the still-pending takeout of Siebel Systems(SEBL Quote). Designed to advance Oracle's lagging applications business, the M&A binge, while boosting the bottom line, has not yet shown evidence of top-line success. ...