BEA Systems

During the tech industry's last big slump, software and hardware vendors were slow to cut costs as falling demand pummeled profits.

This time around, Oracle isn't taking chances. Oracle, the world's No. 2 software company, hit Wall Street's earnings target when it reported fiscal second-quarter results on Dec. 18, by aggressively cutting research and development, travel, and other costs as its customers curtail spending.

The Internet revolutionized the distribution of software -- perhaps a bit too much. The Web brought a new, cheaper method for getting software into the hands of users, but in doing so may have killed one of the best models in Silicon Valley history.

Antagonistic investor Carl Icahn became a billionaire by bullying already distressed companies, but his harassment of Yahoo Inc. could leave him with a black eye -- and a hole in his wallet -- if he's wrong about Microsoft Corp.'s desire to buy the Internet pioneer.

Icahn, 72, has used a combination of guile, gall, grit and gamesmanship to get his way more often than not since he began tormenting vulnerable companies 30 years ago. The conquests helped Icahn build an estimated fortune of $14 billion after starting out on Wall Street with a $4,000 bankroll from his winnings playing poker.