* Plans to sell 12.1 mln shares for $9.50-$11.50 each

* Has not set date, but could trade as early as mid-May

By Phil Wahba

NEW YORK, May 1 (Reuters) - Software company SolarWinds Inc (SWI.N: Quote, Profile, Research) set the terms on Friday for its planned initial public offering in what could potentially be the fifth tech-flavored deal of the year.

The Austin, Texas-based network management software provider plans to raise about $127 million by selling 12.1 million shares in a price range of $9.50 to $11.50, according to a regulatory filing.

SolarWinds is the second technology-oriented company this week to set the terms for its IPO, following satellite image provider DigitalGlobe Inc (DGI.N: Quote, Profile, Research), whose shares are expected to begin trading in mid-May.

Though SolarWinds has not chosen a debut trading date, according to one of the deal's underwriters, the deal could price as early as mid-May, given that revealing the terms of an IPO typically presages that a deal is imminent.

"It's the spring thaw," said Ben Holmes, publisher at research and analytics firm Morningnotes.com. "Software IPOs have generally made investors happy."

SolarWinds registered its IPO over a year ago, suggesting that the company probably sees a window of opportunity to price its deal now that market has begun to re-open, Holmes said.