A week ago, Trapeze Networks announced yet another partnership, this time with Enterasys.  Trapeze was picked as Nortel's WLAN partner after Cisco bought Airespace (the previous WLAN partner that Nortel had).  As I already pointed out earlier this year, the WLAN space will still see some M&A activity happening this year, given the continued growth (despite the fact that Cisco pretty much owns half of the market).  So after seeing Trapeze engage in Airespace-like behavior and establish other relationships with vendors such as 3Com, Enterasys and D-Link, will Nortel risk having its own WLAN product roadmap derailed again (in the event that one of the above companies decide to acquire Trapeze)?  Stay tuned - we will soon find out the answer, but I am willing to make a strong bet that Trapeze is the next WLAN company most likely to be bought.

Note: Airespace had OEM agreements with Alcatel, NEC and Nortel before being snapped up by Cisco.

Note2: Proxim can also be a potential acquisition target, as there are continuing rumors that the company is in a messy financial situation.  Last week, Proxim shares dropped almost 60% after the company revealed it had "an immediate need" for additional financing, and might seek bankruptcy protection unless it is able to be sold or obtain enough financing in Q2 of fiscal 2005.  Many feel that the Orinoco product acquisition from Agere did not go well, and then, the failure of Proxim to introduce a WLAN switch further exacerbated the problem.  But Proxim still has some good IP (Intellectual Property), and the last drop in the stock might also present an opportunity for a perspective buyer.