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(GeekWire Photo / Holly Grambihler)
Editor’s note: A version of this post originally appeared on LinkedIn. Sunil Gottumukkala is co-founder and CEO at Averlon, a Seattle-area cybersecurity startup founded in 2022.
Here’s my take on Google’s $32 billion bet on cloud security with their offer to acquire Wiz. I think they just redefined the game.
Google Cloud just leveled up vs. AWS & Azure: Security was Google’s weak spot in cloud offerings. Grabbing Wiz — a top cloud security platform — instantly plugs that gap. Expect Google to tout “best secure cloud” now, pressuring AWS and Microsoft to respond.
Microsoft has a robust security portfolio that’s supposedly earning more than $15 billion. It offers cross-platform support with their Microsoft Defender for Cloud and Defender for endpoint supporting Windows, Unix and Mac. This is different from AWS’ security offerings which focus mainly on AWS.
With Wiz and Mandiant, Google can compete very effectively upmarket (large enterprises) as it is very well regarded by those customers. Up until now GCP wasn’t seen as a major competitor based on my conversations with CISOs, but the Wiz and Mandiant acquisition changes that. So Microsoft will see increased competition in the upmarket from Google.
AWS might be forced to respond by offering multi-cloud support in their security products moving forward. I suspect they may acquire someone to bolster their offerings in this space. Another thing to note here is that Wiz has been a close partner to AWS for the past few years (Wiz founders/execs were on stage at AWS re:Invent & re:Inforce conferences showcasing the partnership). It’d be interesting to see how that partnership evolves moving forward.
Big investment, bigger stakes: $32 billion is Google’s largest acquisition ever in security. It’s a bold play to win trust (and cloud contracts) from big enterprises. Short-term it’s a hefty price tag (as you can see with stock price dropping more than the market average today), but long-term it could pay off IF it helps GCP grab market share. It shows Google is all-in on cloud growth, even if it means breaking the bank today.
Cloud security industry shake-up: This deal is a record-breaker for a cyber startup — and it will ripple across the startup scene. Mega-exits like this attract more funding into cybersecurity (everyone’s been looking for the next Wiz! Now there will be even more activity given the enormous exit). But it also signals consolidation: the biggest clouds and security firms will keep scooping up innovative players. Smaller cloud security startups now face a tougher road — they must innovate faster or find big partners to survive in the shadow of giants. AI adoption and durable differentiation is key!
Bottom line: Google’s acquisition of Wiz isn’t just another tech deal — it’s a statement that cloud security is now front and center in the cloud wars. We’ll see faster innovation, rising valuations, and fierce competition as the dust settles.
Stay tuned — the cloud security landscape is being remade in real time.
