Deutsche Bank's Top IT Ideas For 2016 Are Here

Deutsche Bank has provided new ideas for next year within the data center, networking, IT space. Specifically, the firm recommended playing major IT spending dislocations – the core basis for their top themes and ideas.

The firm envisions secular spending shifts in the following areas.

1. Networking

A transition of Networking companies from “box based product portfolios” toward software and recurring services-oriented business models.

Top ideas to play this trend are Cisco Systems, Inc. CSCO and F5 Networks, Inc. FFIV.

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2. 100G Data Center, Metro Optical

100G data center and metro optical represent another robust theme, the experts proposed. Infinera Corp. INFN is the firm’s top small-cap idea; Ciena Corporation CIEN should also benefit from this trend, but analysts recommend caution due to the company’s near-term risk/reward.

3. Over The Top Video

The experts point out a "hundreds of millions of dollars" a year opportunity for Akamai Technologies, Inc. AKAM, their top large-cap idea “in over the top linear and on-demand TV, as the long tail of media companies generate the next +10 percent of Internet video traffic.”

4. Wireless

Research indicated wireless should be returning to positive growth in 2016.

In this area, Deutsche Bank’s mid-cap idea is Commscope Holding Company Inc COMM. The experts are also positive on the following issues:

• Arista Networks Inc ANET for 100G data center switching
• Corning Incorporated GLW for moderating displays pricing

• Juniper Networks, Inc. JNPR
• Ruckus Wireless Inc RKUS
• BroadSoft Inc BSFT
• Motorola Solutions Inc MSI

The experts are cautious on Infoblox Inc BLOX.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.