Google just made headlines with its $32 billion purchase of Wiz, a top player in cloud-native application protection platforms. This is the biggest cybersecurity acquisition ever, and it marks a significant move for Google.
The deal, announced on March 18, will integrate Wiz into Google Cloud. Google sees this as a way to ramp up cloud security and adapt to the rise in multicloud usage. CEO Sundar Pichai emphasized that, from the start, security has been a cornerstone for Google. Now, as businesses and governments demand stronger security, this partnership is set to enhance cloud protection and expand options for providers.
Wiz CEO Assaf Rappaport, a cyber defense expert, praised the acquisition, highlighting their shared commitment to safeguarding customers across various cloud environments. He believes this will enhance security measures and prevent breaches, aided by their combined resources and expertise in AI.
Wiz’s platform is designed to integrate with multiple clouds, analyzing and detecting cybersecurity risks before they escalate. The company’s user base includes over 50% of Fortune 100 companies, with names like BMW, Morgan Stanley, and Salesforce using its services.
The collaboration aims to enhance security automation and efficiency, reduce costs, and counter emerging threats, while continuing to support various cloud providers, including AWS and Microsoft Azure.
Industry experts view this acquisition as a game-changer. Mauricio Sanchez from Dell’Oro Group called it one of the most impactful cybersecurity buyouts, overshadowing previous major acquisitions. Google’s last big security investment, Mandiant, was significantly less at $5.4 billion.
Sanchez points out that enterprise cloud spending is skyrocketing, projected to jump from about $81 billion in 2020 to an estimated $285 billion in 2024. Meanwhile, security spending hasn’t kept pace, creating a prime opportunity for Wiz.
However, the hefty price tag raises questions about market values in the security sector. Although Wiz has seen impressive growth, some may wonder if Google overpaid. The acquisition is likely to face regulatory scrutiny, but Google appears to recognizethe urgency of making this move in the CNAPP space.
Forrester analyst Andras Cser believes Google’s motivation stems from the need to improve offerings. Google Cloud’s existing security tools have primarily focused on protecting their own platform. With competitors like Microsoft making significant advancements, Google needs to step up in the multicloud arena.
After this acquisition, it’s expected that many of Google’s current CNAPP capabilities will be replaced by Wiz’s technology, strengthening multi-cloud support. Looking forward, Cser anticipates increased competitive pressure, with other CNAPP providers facing tough challenges from both Google and Microsoft as they push for more advanced features.