Alphabet, the company behind Google, might buy Wiz, a cybersecurity startup, for a cool $23 billion. This would be their biggest purchase ever, topping the $12.5 billion Motorola Mobility deal in 2012. Talks are almost done, and experts are buzzing about what this means for cybersecurity and Alphabet’s cloud business.
Alphabet Eyes Wiz in $23 Billion Deal, Signaling Cloud Security Push
Why Buy Wiz? Bolstering Cloud Security
This deal shows that Alphabet is serious about improving its cloud security offerings. Wiz, based in New York with offices around the world, helps businesses fix problems with separate security tools in the cloud. These separate tools often don’t talk to each other, making it hard to see the big picture of security. Wiz’s system brings everything together, giving companies a clear view of their security and letting them find and stop threats before they cause trouble.
Wiz: A Fast-Growing Startup with Big Names as Clients
Founded in 2020 by cybersecurity experts, Wiz has grown a lot. Big companies like Amazon, Microsoft, and even Google itself use their tools. Wiz started making $100 million a year in recurring revenue (money that keeps coming in) within just a year and a half. By 2023, that number was up to $350 million! This impressive growth caught the eye of top investment firms, and Wiz got funding from Sequoia Capital, Andreessen Horowitz, and other big names. Wiz is clearly a leader in making the cloud more secure.
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A Big Buy in a Careful Market
This possible purchase by Alphabet is interesting because things are slow in the world of big business mergers right now. Governments are watching these deals more closely, and the recent tech boom is still having an effect. Google, even though it’s worth over $2 trillion, hasn’t been buying up companies as much as some other tech giants. Microsoft, for example, bought LinkedIn for $26 billion and Activision Blizzard for a whopping $75 billion. Google’s recent purchases have been smaller, like Fitbit for $2.1 billion and Mandiant, another cybersecurity company, for $5.4 billion.
A Perfect Fit: Google’s Cloud Dreams and Wiz’s Skills
Buying Wiz would be a great move for Google’s cloud computing business. Google might be king of search and ads, but they’re behind Amazon and Microsoft in cloud services. Still, Google is putting a lot of money into cloud computing, and their cloud business revenue grew by 26% in 2023, even turning a profit for the first time. By adding Wiz’s cloud security skills, Google Cloud could become a much more attractive option for companies that take security seriously.
Legal Hurdles: Trust But Verify
This deal is happening while Google is facing some legal challenges. The government is suing them for acting unfairly in search, and there’s another lawsuit about their advertising business. The outcome of these lawsuits is still up in the air, but they show the tough legal environment Alphabet has to deal with.
The Future of Cloud Security: Working Together is Key
If Alphabet does buy Wiz, it would be a big deal for cloud security. It shows that working together and having security solutions that work as one system is becoming more and more important as cyber threats get more complex. With Google’s resources and Wiz’s innovative tech, the new company could become a major player in keeping the cloud safe. As the industry keeps changing, this possible merger could be the start of a new era of collaboration and bright ideas in cloud security.
