It is no brainier to say that the corporate have difficulty in profit and revenue.
As we go along with the recession, I think there are lot of merger or acquisition in the tech industry will have to happen. Reason?
1. Company are trying to trim cost of doing business to drive the profit.
2. Company will go into another business line to add the revenue stream or to show growth.
How many company can afford to acquire or merge with other company? Very few.
Let's look at some of them can be candidate for acquisition.
Sun Microsystem - I don't think it can survive by itself in the recession. Company like Cisco may target it to add new product line in their portfolio.
Cerner - They are just for the one verticle market, healthcare, which is struggling. Company is great but need better partner.
Others are Sandisk, Netapp, Informatica, Yahoo, eBay etc to name a few potential candidates. There are lot of solar companies that will be consolidated.
The only reason to invest in tech is to get acquired by others with hefty premium.
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