Strong demand for cloud security products
Enterprise demand for cybersecurity products continues to increase. Palo Alto Networks (PANW) has taken aim at the cloud security space and has acquired several companies to gain traction in this market.
According to market research company MarketsandMarkets, the global cloud security market will grow by over 3x from $4.09 billion in 2017 to $12.73 billion in 2022. This expected growth provides a tremendous opportunity for PANW to expand its customer base.
Palo Alto Networks’ Prisma
PANW now aims to deliver a robust portfolio of cloud security solutions. On its fiscal 2019 third-quarter earnings call, PANW announced Prisma, which it claims is the industry’s leading cloud security suite. Prisma brings all of PANW’s cloud security solutions under one umbrella. Prisma offers solutions to securely connect mobile users, protect software-as-a-service applications, and protect data in the public cloud.
On PANW’s earnings call, CEO Nikesh Arora stated, “Prisma is our approach to deliver industry leading cloud security products in an integrated fashion. It will address SaaS, API-based, and inline cloud security across all vectors. We will continue to build on Prisma over the coming quarters and years to make it the industry leading platform for the journey to the cloud.”
Prisma exceeded $250 million in its billings run rate in the third quarter and has over 9,000 customers. RedLock, a company acquired by PANW last year, exceeded $100 million in billings in the third quarter. In fact, RedLock won over ten deals over $500,000 as well.
PANW’s acquisition of Twistlock will also help expand the customer base in cloud security. Twistlock focuses on the container security space, which is one of the fastest-growing verticals in the private and public cloud.