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.



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

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)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DLUEY)
Virtus Investment Partners own more than 1% of (DRYS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (POT)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (DRIV)
Accounts managed by Kanundrum Capital are short (XLF)
Accounts managed by Kanundrum Capital are short (IAI)
Accounts managed by Kanundrum Capital are short (APL)
Accounts managed by Kanundrum Capital are short (RSX)

For Patty Edwards
Edwards owns (AAPL) for clients
Edwards owns (CSCO) for clients
Edwards owns (DO) for clients
Edwards owns (EBAY) for clients
Edwards owns (GOOG) for clients
Edwards owns (HAL) for clients
Edwards owns (MDT) for clients
Edwards owns (NOK) for clients
Edwards owns (ORCL) for clients
Edwards owns (PM) for clients
Edwards owns (TXN) for clients
Edwards owns (YHOO) for clients

For Brett Thill
A member of Thill’s team owns (CTXS)
A member of Thill’s team owns (MSFT)
A member of Thill’s team owns (ORCL)
(MSFT), (RHAT) is, or within the past 12 months has been, a client of UBS Securities.

CNBC.com with wires.