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What's next for Cisco after Tandberg deal?

Chambers says more M&A on the way, analysts point to data center

By Jim Duffy on Fri, 10/02/09 - 3:22pm.

Now that the dust is settling after Cisco's $3 billion offer for videoconferencing leader Tandberg, what market will the company address with its next acquisition? After all, Cisco CEO John Chambers told reporters recently that Cisco will be very active on the M&A front over the next year...

Some analysts believe data center is ripe for a purchase. UBS two weeks ago issued a bulletin that suggests Cisco may target data center M&A activity towards storage and virtualization.

This week, just after the Tandberg offer was disclosed, UBS reiterated its expectations that Cisco will focus M&A on the data center and a couple of other key markets: 

Cisco has been clear in its messaging around M&A, discussing video/collaboration, consumer, and the data center as key areas for strategic investment...We have yet to see an acquisition in the data center.

What's your bet? Where will Cisco next make a major -- $500 million or more -- acquisition?

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