Q. I would like to know the prospects for Oracle Corp. in light of the Sun Microsystems acquisition.—P.V., via the Internet

A. The No. 1 provider of database software is cast in the bold image of its billionaire cofounder and CEO Larry Ellison, whose BMW Oracle international sailing team recently won the America's Cup competition.

Ellison, who has said "the America's Cup is like running Oracle" because of the engineers and manufacturing behind both, is now taking on the challenge of his $7.4 billion acquisition of Sun Microsystems.

He has confidently predicted that the money-losing computer server business will soon turn a profit, shaking off numerous critics who say he should not have expanded into hardware.

The goal is to invest in new products and incorporate Sun's high-end systems into a premium all-in-one computer system. It has begun to sell directly to Sun's top 4,000 customers while increasing its research and development efforts.

Aggressive Oracle has been built on acquisitions, including more than 60 companies purchased in the last five years.

Shares of Oracle (ORCL) have been flat this year following last year's 39 percent rise. Earnings in its most recent quarter were up 13 percent and ahead of forecasts as companies became less reluctant to spend money on technology.

Oracle has more than 40 percent of the database market, far ahead of IBM and Microsoft. It sells a wide range of enterprise solutions, including middleware and applications, as it aims to be a one-stop destination for any company looking for enterprise software. Software license updates and product support provide nearly half of the revenues of the company.

The consensus analyst recommendation on Oracle is "buy," according to Thomson Reuters, consisting of nine "strong buys," 16 "buys" and eight "holds."

This profitable California-based company is in strong financial shape with plenty of cash to cover its debt. Ellison, who co-founded it in 1977, owns nearly one-fourth of the company. Oracle does, however, face fierce competition and there's also the possibility that smaller competitors might pop up with something new that could affect its business. The results of buying Sun still remain to be seen.

Earnings are expected to increase by 10 percent in the current fiscal year ending in May and rise 18 percent the following fiscal year. The five-year annualized growth rate for the company is forecast as 14 percent versus 13 percent predicted for the application software industry.