Here's what they see coming:
- Next-generation data centers
"We expect to hear more about the Software-DefinedData Center in 2013, which we view as a risk to incumbent companies that have not thoughtfully positioned for upcoming changes in IT architectures," the Baird analysts write. Their recommendations to play the trend: Palo Alto Networks, Citrix and SolarWinds.
- Public clouds
"We believe that public clouds will help convert the color of IT spend from capex to opex [from capital expenses to operating expenses], and cannibalize some hardware sales in favor of Software-as-a-Service solutions," he writes. Their picks here include Salesforce.com and Amazon.com.
- Windows 8
Not necessarily an obvious pick, but Baird sees a potential second half catalyst here for consumer PC demand. Their picks to play the trend: chip makers Micron and Intel.
- Mobile platforms
"We believe that global Android/iOS device sales (smartphones and tablets) have surpassed PC sales," the Baird analysts write. To play the theme, they recommend Apple - the obvious choice - as well as Synchronoss, a less obvious choice, which helps telecom companies manage transactions. Other picks include Google, which they see benefitting from the proliferation of Android devices, as well as the mobile device-focused chip makers Omnivision, Broadcom and InvenSense.
- Mobile data and LTE
They like the prospects for Vodafone, in particular because of the company's 45% stake in Verizon Wireless. They see Ericsson benefitting from LTE build-outs, along with the chip makers Altera and Xilinx.
- Big data
"Enterprise desire to analyze structured and unstructured Big Data will drive Business Intelligence spending," the Baird analysts write. Software plays on the trend include Qlik and Informatica. IT services bets include Cognizant, Genpact and WNS.
And finally, here's Baird's list of potential 2013 takeover targets:
