If Alphabet’s Google successfully acquires cloud security company Wiz, it would significantly enhance its cloud security offerings for large organizations.
This acquisition would allow Google to better compete with cloud giants like Amazon.com and Microsoft, experts say.
With cybersecurity threats on the rise, this move could position Google at the forefront of cloud security.
The Potential Acquisition of Wiz
Alphabet is reportedly in advanced talks to acquire Wiz in a deal that could be worth up to $23 billion.
This acquisition would be Google’s most expensive to date and would provide it with robust cybersecurity products to defend against ransomware attacks targeting large enterprises.
Expert Opinions
“There is a hot market for cloud security,” said Jerome Seguera, a senior intelligence analyst at Malwarebytes.
He added that Wiz offers customers “great visibility into their assets in a straightforward way.”
Wiz’s tools enable organizations to scan their entire infrastructure and specific software for potential threats, providing a comprehensive security solution.
Google’s Cybersecurity Expansion
Google has been steadily expanding its cybersecurity offerings in recent years. Two years ago, it acquired the popular cybersecurity firm Mandiant for $5.4 billion.
“I think they are trying to compete with Microsoft and to a smaller extent AWS (Amazon Web Services),” said Marc Bleicher, CTO of Surefire Cyber.
He noted that Wiz is one of the few companies that address a significant portion of the cloud security market within a single platform.
Wiz’s Origins and Growth
Wiz was founded in 2020, during the height of the coronavirus pandemic. It was well-positioned to benefit from the shift towards remote work and the migration of organizations to cloud environments.
Most large organizations have moved their data to the cloud, which has introduced new security risks as these companies expand and become more complex.
Founders and Valuation
Wiz was founded by former members of Israeli army intelligence, who previously founded another cloud security firm, Adallom, which Microsoft acquired for $320 million in 2015.
Headquartered in New York, Wiz has experienced rapid growth. Just two months ago, at the RSA cybersecurity conference in San Francisco, Wiz announced it was valued at $12 billion.
The company now expects annual organic revenue of $1 billion by 2025 and has raised nearly $2 billion in venture capital, according to sources familiar with the Google deal talks.
The Surge in Cybersecurity Deal Activity
The potential acquisition of Wiz by Google comes amid a surge in global cybersecurity dealmaking in 2024.
According to data from Dealogic, there were 120 global cybersecurity deals announced in the first half of this year, totaling $12.4 billion in deal value. This is a significant increase from last year, which saw 137 deals worth $4.8 billion.
Market Dynamics
Dave DeWalt, founder of the cyber-focused venture capital firm NightDragon, attributes Wiz’s growth to strong marketing and being “at the right place, at the right time, with the right product.”
DeWalt, former CEO of FireEye, emphasized that cloud security is the most important and fastest-growing segment of cybersecurity, driven by increasing attacks on large organizations.
The Growing Importance of Cloud Security
“The stakes are exponentially higher in the cloud. Therefore, the security needs to be exponentially stronger, and there’s more revenue from it,” DeWalt said.
He also noted that companies like Palo Alto Networks and Crowdstrike have significantly enhanced their cloud security offerings in recent years.
Conclusion
As Google continues to expand its cybersecurity portfolio, the potential acquisition of Wiz could be a game-changer.
This move would not only strengthen Google’s position in the cloud security market but also provide large organizations with more robust tools to combat the growing threat of cyberattacks.
With the cloud security market heating up, Google’s strategic investments could pay off significantly in the long run.
