Cybersecurity in the cloud: Google considers buying Wiz for $23 billion

Google is exploring the possibility of acquiring Wiz, a cloud security company, spending $23,000,000,000 on the purchase.

Alphabet, the parent company of Google, is considering the acquisition of the cybersecurity startup Wiz for $23 billion. If finalized, this deal would mark one of the largest agreements in the tech industry and would be Alphabet’s biggest expenditure to date. In a significant and necessary strategic move, as highlighted throughout this article, cybersecurity attacks are becoming increasingly frequent.

Alphabet (Google Cloud) has fallen behind Amazon (AWS) and Microsoft (Azure) in the Cloud Computing services market. With the sector projected to be a significant revenue source in the coming years, Alphabet seeks to strengthen its position with Wiz's cybersecurity expertise. This startup specializes in cloud security solutions, a crucial area as more companies migrate from local disks to cloud storage.

The deal would be a milestone in the world of tech M&A. Wiz generated $350 million in recurring revenue last year and recently raised $1 billion, suggesting a valuation of $12 billion. The growing demand for cloud security even surpasses other security categories like data protection and privacy, reflecting the urgency with which companies are investing in these solutions.

Within the tech M&A landscape, particularly in BigTech transactions, acquisitions are driven by the pursuit of technological advantages. An example is Alphabet’s strategic move with Wiz in the cybersecurity sector. It highlights a key trend: the importance of linking cutting-edge technology with digital security in large companies, a connection that must be considered necessary.

Globally, we are in an increasingly threatening digital environment, which is clearly reflected in both the increasingly frequent and lucrative Cybersecurity M&A transactions, as well as the digital security attacks that many companies and governments have suffered in recent years.

The purchase of Wiz for $23 billion would solidify Alphabet’s position in the cloud market and also act as a catalyst for M&A in cybersecurity, setting a precedent for other tech giants in the sector (Microsoft, Fortinet, IBM, and many more).

Cyberattacks are becoming more frequent on a global scale:

1. SolarWinds (2020): Description: A sophisticated attack that compromised SolarWinds’ network management software, specifically the Orion product. The attackers inserted malicious code into the software updates, allowing them to access the victims' systems. Impact: It affected numerous U.S. government agencies and companies worldwide. It is considered one of the most significant cyberattacks due to its reach and the amount of sensitive information compromised.
2. Colonial Pipeline (2021): Description: A ransomware attack that affected the leading fuel pipeline operator in the United States. The service disruption caused fuel shortages and price increases in various regions. Impact: It highlighted the vulnerability of critical infrastructures and motivated the U.S. government to strengthen its cybersecurity measures.
3. Kaseya (2021): Description: A ransomware attack targeted Kaseya, an IT & Security Management software. This affected thousands of SMEs worldwide. The attackers exploited a vulnerability in Kaseya’s VSA software to deploy ransomware on their clients’ systems. Impact: This attack demonstrated how cybercriminals can take advantage of managed service providers (MSP) to scale their attacks.
4. JBS (2021): Description: JBS, the world’s largest meat producer, suffered a ransomware attack that disrupted its operations in several regions. Impact: JBS paid $11 million to regain control of its systems. This attack underscored the vulnerability of the food supply chain to cyberattacks.

The potential acquisition of Wiz by Alphabet not only aims to improve its position in the cloud market but also to establish a more secure environment for its customers. We are in an era where cyberattacks are a daily threat; this investment in cybersecurity could be a decisive factor for Alphabet’s future success in cloud computing. If this move is carried out, it would not only strengthen Alphabet’s security infrastructure but also send a clear message about the importance of cybersecurity in today’s digital economy.