Ah, rumors. The stuff that makes stocks go up and down. At least juicy rumors keep things interesting.

There is some chatter in the blogosphere emanating from SiliconValleyWatcher that enterprise database vendor, Oracle Corp. (NASDAQ: ORCL) may be in the process of scooping up upstart Salesforce.com (NYSE: CRM). Not only is SVW hearing this from a reliable source but it appears the buyout may come at a very large premium -- 50% over CRM's share price today.

I feel like this tie-up has been telegraphed from the inception of Salesforce.com as an organization. Salesforce.com plays in the SaaS (Software as a Service) space, effectively letting both large and small sales organizations rent the software that manages their sales pipelines.

I've written about SaaS vendors previously and how they harbinge the future of the software industry. Combine a pay-as-you-go model that addresses the long tail of small businesses with the sales prowess of an Oracle at the Fortune 500 level and you have an extremely interesting M&A.

As SiliconValleyWatcher posits, it's going to come down to numbers. Salesforce's effervescent (understatement) CEO, Mark Benioff, came out of Oracle and could play the role of Larry Ellison's successor. Benioff knows he has some great assets and is looking to best capture their value.

Is Oracle going to pay up?

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author holds no position in the stocks mentioned.

Before tailgating begins today, I like to take the time to run through some equity research. While not as exciting as reading Tim Ferriss' 4-Hour Work Week and some of the radical lifestyle experimentation he writes about on his blog, I stumbled upon a company whose IPO I missed, SuccessFactors (NASDAQ: SFSF).

I've written before about new Software as a Service (SaaS) firms like Salesforce.com (NYSE: CRM) and Concur Technologies (NASDAQ: CNQR) that deliver their software via the internet. Companies employing the software typically rent it and pay as they use it. The software is hosted, which means the software provider manages updates and versions.

I thought it would be worthwhile summarizing some of the research put out this week on the firm by the likes of JPMorgan and Goldman Sachs.

Founded in 1999, Intacct is now a key player in the on-demand software space. The focus is on enterprise resource planning (ERP) solutions for small and mid-size companies (of which there are about 2,000 customers).

To ramp up growth, the company raised $14 million in venture capital. The investors include Sigma Partners, Sutter Hill Ventures, and Emergence Capital Partners.

I had a chance to interview the company's CEO, Mike Braun. He is a veteran of the tech world, having worked at high level positions for IBM (NYSE: IBM) as well as a variety of upstart companies.

Q: Salesforce.com (NYSE: CRM) just reported a record quarter. What's your perspective on the company's future growth prospects?

A: It was a fantastic quarter -- further demonstrating the momentum of the new "on-demand" computing model. Salesforce continues to focus on new customer acquisition, which drives high expenses in the near term, but you can get a preview on the future by looking at the cash flow growth of 197% YTY. Once companies move to this delivery model, whether with salesforce.com or Intacct, they love it and will stay for life.

As has been expected, NetSuite filed its IPO yesterday. The company – which is backed by Oracle's (NASDAQ: ORCL) Larry Ellison – is a leader in a new approach to software: on-demand. This uses the Internet as a way to deliver business applications.

To get some insight on the IPO, I interviewed Chris Cabrera, who is the CEO and founder of Xactly (which is a venture-backed on-demand software company).

How are things going at Xactly?

Things at Xactly continue to go great. We have more than 70 customers, we are dominating the on-demand compensation space, we were recently recognized by the ABA (American Business Awards) as "Best New Company" and we just moved into 30k square feet of prime real estate in downtown San Jose to house our 100 employees.