Google to Acquire Wiz, a Cybersecurity Startup From Israel – Spiceworks News and Insights

• Google is in talks to acquire cybersecurity firm Wiz for $23 billion, making it its largest acquisition.
• The deal will likely refocus antitrust regulators’ attention on the tech giant, which has already been sued twice.

In a move expected to bolster its cloud security portfolio, Alphabet, Google’s parent company, is in discussions to acquire cybersecurity startup Wiz for a hefty $23 billion. If finalized, the acquisition would be the company’s largest to date, significantly overshadowing its 2022 acquisition of Mandiant for $5.4 billion and the 2011 acquisition of Motorola for $12.5 billion. This highlights the tech giant’s commitment to improving its cloud security infrastructure.

Several blue-chip companies, including Index Ventures, Cyberstarts, Sequoia Capital, and Insight Partners, have already backed Wiz. The company offers security tools and scanners for business customers. It made a name for itself by identifying vulnerabilities in Microsoft’s Azure platform.

The acquisition of Wiz will be a significant step in advancing Google’s position in the cloud security sector. Wiz has grown rapidly into a leader in the space in recent years. The startup offers comprehensive service coverage, including threat detection, monitoring, and response capabilities across varied cloud environments, making it a notable addition to Google’s portfolio.

See More: Google’s Updated Advanced Protection Program: Passkey Security for High-Risk Users

Google Aims to Compete With Microsoft and Amazon

Google’s ambition to acquire Wiz highlights the company’s intentions to better compete with major service providers such as Amazon Web Services and Microsoft Azure. Despite its investments, Google has always lagged behind AWS and Azure in terms of its security portfolio and market share.

Microsoft and AWS have set themselves at the top of the cloud industry with notable contributions from their security frameworks. However, with Wiz, Google has an opportunity to catch up:

Microsoft Azure

• Comprehensive security solutions: Azure provides a wide range of security services, such as the Azure Sentinel, Azure Security Center, and several compliance certifications.
• AI and machine learning: Azure has leveraged AI and machine learning to enhance its threat detection and response offerings, offering features such as predictive analytics to mitigate security incidents.
• Integration and automation: Azure enables integration with other Microsoft services and automation of security tasks, simplifying security management for customers.

Amazon Web Services (AWS)

• Security services: AWS offers a diverse set of security tools, including AWS Macie, AWS Shield, and AWS GuardDuty.
• Compliance: AWS offers customers strong support for compliance with regulations across industries.

Google With Wiz

With the integration of Wiz’s capabilities, Google Cloud is expected to enhance its security posture significantly:

• Advanced threat detection: Wiz’s platform offers superior threat detection, leveraging machine learning to identify and mitigate security risks in real-time.
• Overall Cloud Security: The acquisition is also expected to enable end-to-end security solutions, including data protection, network security, and compliance.

By integrating Wiz’s advanced security features, Google aims to attract a broader customer base and potentially increase its market share in the cloud sector. The move could also capitalize on Microsoft’s recent fall from grace after multiple security breaches.

Regulator Scrutiny

The potential acquisition of Wiz highlights the growing trend of consolidation in the cloud security industry. Companies are investing heavily in security to maintain customer trust. The deal could also encourage more collaborations in the industry going forward. However, the deal has also brought about the focus of antitrust regulators on Google again.

Google is already facing several legal antitrust challenges, including a suit by the DoJ that accused the company of abusing its position in the search engine and digital advertising markets.

Takeaways

Google’s potential acquisition of Wiz could be a significant landmark in the cloud security market. With Wiz’s security solutions, Google can push to become a major competitor to AWS and Microsoft. As cloud services evolve, security will emerge as a critical differentiator supporting investments and innovation for the foreseeable future.

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