From Fox Sports (via Arrowhead Pride, emphasis mine):
Edwards said he will decide between taking time off, doing TV, and being a defensive backs coach, a job he truly enjoyed before becoming head coach of the New York Jets. Edwards said he does not want to be a defensive coordinator.
I guess we can scratch Herm coming to the Colts as their new DC. But what about him being the secondary coach? The Colts currently have a fine DB coach in Alan Williams. Many think he is being groomed to one day become some team's defensive coordinator. He has interviewed for the position before with the Vikings. One possibility with Herm is to bring him to Indy as the assistant head head coach and make him a defensive specialist, like they did Leslie Frazier from 2005-2007.
One thing seems pretty certain: Larry Coyer will get the open defensive coordinator job, unless some new candidate pops up that we haven't heard of.