Google is in talks to buy cybersecurity company Wiz for $23 billion, making it its largest acquisition.
The deal is likely to help refocus antitrust regulators' attention on the tech giant, which has already been sued twice.
In a move expected to bolster its cloud security portfolio, Google parent Alphabet is in talks to buy cybersecurity startup Wiz for $23 billion. If the deal goes through, it would be the company’s largest to date, significantly eclipsing its $5.4 billion acquisition of Mandiant in 2022 and its $12.5 billion acquisition of Motorola in 2011. It highlights the tech giant’s commitment to improving its cloud security infrastructure.
Already backed by several major companies, including Index Ventures, Cyberstarts, Sequoia Capital, and Insight Partners, Wiz. The company offers security tools and scanners to enterprise customers. It has made a name for itself by identifying vulnerabilities in Microsoft’s Azure platform.
The acquisition of Wiz would be a significant step in strengthening Google’s position in the cloud security space. Wiz has rapidly grown to become a leader in this space in recent years. The startup offers comprehensive service coverage, including threat detection, monitoring, and response capabilities across diverse cloud environments, making it a notable addition to Google’s portfolio.
See more: Google's Updated Advanced Protection Program: Passkey Security for At-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 providers like Amazon Web Services and Microsoft Azure. Despite its investments, Google has consistently lagged behind AWS and Azure in terms of security portfolio and market share.
Microsoft and AWS have positioned themselves at the top of the cloud computing industry thanks to the notable contributions of their security frameworks. However, with Wiz, Google has a chance to catch up:
Microsoft Azure
Comprehensive security solutions: Azure offers a wide range of security services, such as Azure Sentinel, Azure Security Center, and many compliance certifications.
Artificial Intelligence and Machine Learning: Azure has leveraged artificial intelligence and machine learning to improve its threat detection and response offerings, offering features like 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 variety of security tools, including AWS Macie, AWS Shield, and AWS GuardDuty.
Compliance: AWS provides customers with robust support for compliance with regulations across industries.
Google with Wiz
With the integration of Wiz capabilities, Google Cloud is expected to significantly enhance its security posture:
Advanced Threat Detection: The Wiz platform provides superior threat detection, leveraging machine learning to identify and mitigate security risks in real-time.
Comprehensive cloud security: The acquisition is also expected to provide comprehensive security solutions, including data protection, network security, and compliance.
By integrating advanced security features into Wiz, Google aims to attract a wider customer base and increase its market share in the cloud computing sector. The move may also benefit from Microsoft’s recent downfall following multiple security breaches.
Regulatory Audit
The potential acquisition of Wiz highlights a growing trend toward consolidation in the cloud computing security industry. Companies are investing heavily in security to maintain customer trust. The deal could also encourage more collaboration in the industry in the future. However, the deal has also brought Google back into the spotlight of antitrust regulators.
Google already faces several antitrust legal challenges, including a lawsuit filed by the Justice Department accusing the company of abusing its position in the search engine and digital advertising markets.
Ready Meals
Google’s potential acquisition of Wiz could be a game changer in the cloud security market. With Wiz’s security solutions, Google could become a major competitor to AWS and Microsoft. As cloud services evolve, security will emerge as a critical differentiator that will drive investment and innovation for the foreseeable future.
