With a market cap of more than $7 billion, however, McAfee would not come cheap, and its valuation is likely to soar in an improving economy. A much more likely target for H-P would be security software maker
, according to Daly, who is one of the company's many
"There were rumors that H-P wanted to buy them before their  IPO," he said. "Their stock did nothing until this year, [but] it's delivering, it's profitable and ArcSight has very strong sales into the Federal Government."
stocks, ArcSight has been tipped as a challenger to tech security giants
The company has more than tripled in value during the last 12 months, and is currently trading around $23.21.
With a market cap of just over $770 million, Daly says that ArcSight would be easy for H-P to swallow. "I am not suggesting that anything is in play, but does the math make sense? Yes," he said. "Something like ArcSight is digestible and it delivers quality contracts."
ArcSight has not yet responded to a request for comment on this story. H-P declined to comment.
It is not just security, however, where there is plenty of acquisition talk, particularly
Cisco's purchase of video conferencing specialist Tandberg.
"There has been speculation about whether
could be in play as a result of Cisco's acquisition of Tandberg," said Ron Gruia, lead telecom analyst at Frost & Sullivan. "There's a rumor that
may make a move for Polycom, but they are in a hold pattern until the DoJ approves their