SAN FRANCISCO – Alphabet Inc’s Google is aiming to enhance its cloud security capabilities by potentially acquiring Wiz, a move experts say could strengthen its position in protecting large organizations vulnerable to cyber threats, sources familiar with the matter reported on Sunday.
In what could be Google’s largest acquisition yet, valued up to $23 billion, the deal underscores the tech giant’s strategic push to expand its cybersecurity offerings amid rising concerns over ransomware attacks targeting enterprises.
“There is a hot market for cloud security,” remarked Jerome Seguera, senior intelligence analyst at MalwareBytes, highlighting Wiz’s role in providing comprehensive visibility into assets with user-friendly tools.
Wiz specializes in tools that enable organizations to scan their entire infrastructure and specific software for potential threats, filling a critical gap in cloud security solutions.
“Google appears focused on competing with Microsoft and, to a lesser extent, AWS (Amazon Web Services),” noted Marc Bleicher, CTO of Surefire Cyber. “Wiz uniquely addresses a significant segment of the cloud security market through its comprehensive platform.”
Founded in 2020 during the height of the pandemic by former Israeli army intelligence members, Wiz has capitalized on the shift towards remote work and cloud adoption by enterprises, which has also increased associated security risks.
The New York-based company, which recently valued itself at $12 billion, anticipates reaching $1 billion in annual organic revenue by 2025, following substantial venture capital investments totaling nearly $2 billion.
The potential acquisition comes amid a surge in global cybersecurity deals in 2024, reflecting heightened industry consolidation and investment. According to Dealogic, the first half of the year saw 120 cybersecurity deals worth $12.4 billion, up from 137 deals worth $4.8 billion in the same period last year.
Dave Dewalt, founder of NightDragon, a venture capital firm specializing in cybersecurity, credited Wiz’s rapid growth to strategic positioning and strong product appeal in a burgeoning market.
“Cybersecurity in the cloud is increasingly pivotal, given the escalating threats against large enterprises,” Dewalt emphasized, noting similar expansions by competitors Palo Alto Networks and Crowdstrike in cloud security offerings.
Google’s move to acquire Wiz is seen not only as a bid to fortify its cloud security portfolio but also as a strategic maneuver to bolster its competitive edge in the rapidly evolving cybersecurity landscape.
