Alphabet (GOOGL) Boosts Cybersecurity Reach with Siemplify
Alphabet (GOOGL) acquires Siemplify to strengthen its SOAR capabilities. Further, the buyout is likely to strengthen the company's presence in the cybersecurity space.
Alphabet’s GOOGL division Google has acquired an Israel-based startup called Siemplify for $500 million to ramp up its cybersecurity efforts.
Siemplify offers cloud-based security orchestration, automation and response (SOAR) solutions, which enable security operations centers (SOC) to integrate threat response into user security policies.
These solutions are designed to manage the entire security operations function from end to end.
The underlined buyout will surely strengthen Google’s SOAR capabilities, which will likely aid it to gain traction among SOC analysts.
Per the terms of the deal, the Siemplify platform will be integrated into Google Cloud. Further, the search giant intends to form the basis for its cybersecurity operations in Israel with the help of Siemplify.
We believe that the buyout will expand the search giant’s reach in the booming cybersecurity market. Further, it will bolster the threat detection and response efforts of the security team of Google.
Cybersecurity in Focus
The demand for cybersecurity solutions is expected to remain healthy in the days ahead, owing to the increasing frequency and technologically advanced nature of cyber-attacks. These attacks are not only affecting companies but are also threatening some nations’ security.
Further, ongoing digital transformation and the proliferation of smart connected devices, supported by artificial intelligence (AI), and its tools like machine learning (ML), are exposing vulnerabilities in security systems globally.
The growing incidents of AI and ML-driven advanced security attacks or “smart attacks” have become a headwind for businesses.
As a result, enterprises worldwide are spending heavily on stricter cyber security solutions.
Per a report from MarketsandMarkets, the global cybersecurity market is expected to hit $217.9 billion in 2021 and reach $345.4 billion by 2026, seeing a CAGR of 9.7% between 2021 and 2026.
Per a Mordor Intelligence report, the market will likely reach $352.25 billion by 2026, witnessing a CAGR of 14.5% between 2021 and 2026.
Google’s Efforts, Competitive Scenario
The Siemplify acquisition bodes well for Google’s growing cybersecurity efforts. Further, it is a notable step toward Alphabet’s promise to President Joe Biden regarding the commitment of a $10-billion investment in cybersecurity over the next five years.
Apart from Siemplify, Google Cloud’s $50-million investment in the cybersecurity company, Cybereason, which offers endpoint prevention, detection, and response, remains another positive.
We note that Alphabet, on the back of these strong efforts, remains well-positioned to capitalize on the immense growth prospects in the cybersecurity market.
Alphabet, which carries a Zacks Rank #3 (Hold) at present, will continue to pose serious challenges to other tech giants like Amazon AMZN, Microsoft MSFT and Apple AAPL, which are also making concerted efforts to gain a foothold in the cybersecurity market.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amazon’s cybersecurity training materials, which are designed in a digestible format as part of its Security Awareness training, are witnessing solid adoption.
Apart from this, the multi-factor authentication (“MFA”) device of Amazon, which enables customers to protect their AWS accounts against malware attacks, session hijacking, man-in-the-middle and phishing, remains noteworthy.
Then again, Apple is gearing up to deliver security training, incident response and vulnerability remediation. It is making efforts toward MFA implementation at a large scale.
Meanwhile, Microsoft has promised an investment of $20 billion in cybersecurity in the coming five years. Further, the company recently launched a cybersecurity skilling program in India to train more than 1 lakh learners by 2022, which is a positive step in boosting cybersecurity worldwide.
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