Google's $ 32BN (£ 24.6bn) acquisition of Cloud Native Application Protection Platform (CNApp) Provider wiz has been haied as bot the world's most Valuable Cyber Security Accurity Acquisition to Date, as well as a landmark deal for google.
The All-Cash Transaction, Announced Earlier on Tuesday 18 Marchwill ultimately in the ai era” – The need to improve cloud security, and the growth of multicloud environments.
“From its earliest days, google's strong security focus has made us a leader in keeping people safe online. Today, businesses and governments that run in the cloud are search for building for ever Solutions, and Greater Choice in Cloud Computing Providers.
Wiz CEO Assaf Rappaport, who co-founded the business after seling a previous venture to microsoft in 2015, and cut his teeth in Israel's World Renowned Cyber Defense UnitAdded, “Wiz and Google Cloud are fully committed to Continue support and protecting customers Across all Major Clouds, Helping Keep Them Safe and Secure Whereveer The Operate.
“This is an exciting moment for our company, but an even more important one for customers and partners, as this acquisition will bolser our Mission to Improve Security and Prevent Creathes by Providing by Providing by providing Resources and Deep Ai Expertise. “
At Its Heart, Wiz offers a security platform that can be plumbed into multiple clouds and code environments in order to analyse and detect potential cyber Risks and Vulnerability They snowball into full-blown incidences.
It claims to be used by over 50% of the Fortune 100 List of Companies, and Counts the Likes of Asos, BMW, Experian, IHG Hotels and Resorts, LVMH, Morgan Staanley, SAlesFORCE, and SIMEMENS AMONMENS AMONSMENS MOREMENS MOREMENS MORTS, LVMH, Morgan Stanley, Siemens.
Togeether, the two firms say they hope to improve how security is designed, operated and automated in the AI Era, Help Cyber Teams Scale, Lower Security Costs, Protect Agest New Threats, and Boost Adoption of Multicloud Security.
On this final point, bot firms today made a point of saying wiz's products will continue to be made available access all major clouds, including Aws, Microsoft Azure, and Oracle Cloud.
Deal reaction
Delll'oro group analyst Mauricio Sanchez Described The Multibillion-Dollar Buy as One of the Most Significant Cyber Acquisitions in HistoryOutweighing in its impact the likes of the 2021 purchase of proofpoint for $ 12.3bn, and the 2019 purchase of symantec for $ 10.7bn.
He additionally noted
“Understanding Google's Strategic Rationale Behind This Deal Requires Recognising The Surging Growth of Enterprise Cloud Investments, Coupled with a Notable Lag in Cloud Security Spanding,”
“According to our recent Cloud Workload Security Quarterly Report Covering the cnapp market, enterprise cloud spending Skyrocked from Approximately $ 81bn in 2020 to an estimated $ 285bn in 2024, representing an impressive five -YEAR COMPUNED ANNUL GOWTE RATE (CAGR) of 29%.
“However, Security Investments Have Not Kept Pace, Presenting A Significant Opportunity for Vindors Like Wiz That Provide Comprehensive Cloud-Native Security Solutions,”
However, he added that the significant purchase price did Raise Questions About Market Dynamics and Valuations in Security, Noting That That ALTHIN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEEN SEAN SECIRETY A. Hefty Premium, there will irvitally be questions raised over where or not google might have paid too much.
The deal will be almost creating self -significant regulatory scrutiny and antitrust investigations, he added. However, Said Sanchez, Google's willingness to bet on the acquisition being approved reflected its recognition of the need to make some sort of play of play in cnapp.
Forrester Vice President and Principal Analyst Andras CSER Agreed Google was likely motivated by this need.
“While Google Cloud Platform (GCP) has been investing in bill-in cnapp capability for their own platform's native security with success, these tools from having on for facused on Protecting GCP Endpoints/Assets Multicloud-caapable cnapp tool giving
“Forrester Expects that, post-workation, most current CNApp Capabilities in GCP (CSPM, CIEM, Agentless CWP) will be replaced by wiz's offering and remain with multi- CLOTI-CLOUD Suporti.”
Looking Ahead, CSER Forecast “Immense” Competitive Pressure and Consolidation across the CNAPP Community.
“Fortinet, Palo Alto Networks, Sysdig, Rapid7, Trend Micro and Other Independent CNAPP Suite Providers Now face Fier Fier Fierce Competition from Cloud Infrastructure Providers Provides Providers to Stayed in FeeTures,” He said. “This planned acquisition plus Microsoft's Continued Investments in CNAPP and App Security will make it harder for these vendors to maintain and realise their growth.”