Tech giant Google has made its largest-ever acquisition, agreeing to buy cybersecurity start-up Wiz for $32 billion. This move is part of Google’s effort to strengthen its cloud-computing business and diversify beyond its search engine and consumer internet services. Wiz, a relatively unknown company to consumers but relied upon by businesses for cloud application security, will now become a part of Google Cloud.
The deal would provide Google with the opportunity to offer stronger security solutions and more choice in cloud computing providers. With this acquisition, Google aims to compete more aggressively with Microsoft in the cybersecurity space. However, the company will have to navigate regulatory hurdles to finalize the deal, especially amidst the ongoing antitrust battles it faces.
Google’s parent company, Alphabet, has been looking to diversify its revenue streams and has been investing in ventures like self-driving cars and health care. Google Cloud has seen revenue growth but has struggled to maintain a steady pace. The acquisition of Wiz aligns with Google Cloud’s strategy to become a major player in cybersecurity.
Wiz has experienced rapid growth, with its recurring revenue reaching $350 million last year. The company plans to reach $1 billion in recurring revenue by 2025. With this acquisition, Google aims to bolster its security offerings and prevent breaches by leveraging Wiz’s resources and expertise in artificial intelligence.
Overall, this acquisition signifies Google’s commitment to expanding its cloud services and enhancing cybersecurity capabilities, while also facing regulatory challenges and competition in the market.
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