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Will Cloud Trigger M&A Frenzy?

Tech investors are growing more excited by ‘The Cloud’ everyday.

What's 'The Cloud?'

It's just a buzz word for the trend toward using Internet based services and storage – and not your hard drive.

The trend is hot because it eliminates the need to download software onto your PC; which in turn frees up memory. In some cases the applications are free, such as Google's calendar function. And in other cases you pay as you go.

Now with that said - Brent Thill of UBS suggests ‘The Cloud” could fuel some M&A frenzy.

What names should be on your radar?


According to Thill, it’s Red Hat and Citrix. “(Both) are both critical to the Cloud,” he tells the desk. “Red Hat is critical to powering a number of the services and Citrix is important for desktop virtualization.”

So who might be on the prowl for these kinds of companies?

”Cisco, Hewlett and Oracle are all very interested in the cloud,” Thill explains. “In fact, Every big tech company is going after the trend as an opportunity.”

But even without a takeout, Thill thinks investors can still make money.

Red Hat and Citrix are two names for the radar regardless, "their already great companies,” he says.



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Trader disclosure: On Sept. 10th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;; Finerman’s firm is short (ANF); Finerman’s firm owns (ORCL); Finerman’s firm owns (PM); Finerman’s firm owns (JCG); Cortes is short gold; Terranova Owns (APA), (AXP), (ARUN), (AAPL), (BMO), (RSH), (FCX), (GS), (IBM), (JOYG), (MRVL), (ORCL), (C), (POT), (GLD), (XBI), (SU), (X), (UPL), (SPLS), (OXY), (QCOM)

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