Cisco

I hope everyone realizes how significant Cisco’s recent moves in to the data center are. This is a huge huge market that they’ve never played in before and they have an absolute ton of cash to buy their way in.

They’ve already got existing relationships, so customers are going to listen and treat anything that that say with credibility. Yes, they don’t have the track record but….look at VOIP…..they had no track record there and now dominate that space.

Not suggesting that they are going to dominate, after all, the competitors in the data center are pretty formidable in their own right, but I would imagine that they will absolutely take some share.

Time to sit down with a pencil and paper and try to figure out who they are going to buy next – I’ve made some good money on stocks over the years simply by betting on who is going to be acquired.

In the management space, Cisco are either going to build their own suite by buying lots of smaller players (aka Tidal) or they will buy big for someone who is already established. They tried with Bladelogic before BMC eventually got them and they’ve snapped up Tidal.

What do they need? Event Management, Service Level Monitoring, BSM, Service Desk, CMDB, Run Book Automation, Network Monitoring – lots of different pieces.

There are some really hot private companies in each of these areas, Nimsoft, Service-Now, Opalis, Stratavia, NetQoS to name just a few.

But, my bet would be on them buying big. I mentioned BMC the other day – the other alternative would be Quest Software – after all Quest have been buying a lot of Virtualization tools themselves over the last couple of years.

Time to sell my stocks in that UK Bank and invest in some BMC and Quest I think.

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