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While I don't know enough about KANA to have any kind of inclination (without digging into a little due diligence) I just wanted to chime in that it's important to take Ellison's comments with a grain of salt.

He has always spoken fondly of SAP, as if they two will be the last two standing software companies will deriding Microsoft and all of its smaller rivals. Siebel, in particular, gets bashed by Ellison who has an obvious ax to grind there (Siebel himself left Oracle to start his company -- and Ellison has even sent an ice cream truck to Siebel's HQ handing out free ice cream with recruiting pitches to bring them back into the Oracle fold).

Sure, a lot of software companies won't make it, but you have to separate the ones that will die slowly from the ones who will be acquired at a healthy premium. Where does KANA lie? I'm off to find out.

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