Google Reflects Growing Cybersecurity Consolidation [Weekly Cybersecurity Brief]

Google started this week by completing its nearly $5.4 billion acquisition of cybersecurity giant, Mandiant, which it first announced back in March. Although Mandiant, formally known as FireEye, will remain as its own brand, it will now exist under the Google Cloud family of services. As Google explained in a blog post, this deal offers the company a major opportunity to expand its security capabilities. 

By purchasing Mandiant, Google plans to combine features. In addition to Google Cloud’s pre-existing security tools, they will now also have access to Mandiant’s resources that allow organizations to “evaluate the effectiveness of their cloud and on-premises breach prevention systems,” according to Silicon ANGLE. But this isn’t the only cybersecurity move Google is making. It reports that it is busy developing additional internal security products as well, including the recently revealed VMTD. VMTD provides malware detection support for technology connected to cloud data centers.

Aside from it being a big move for Google, the Mandiant acquisition also represents a larger trend happening in the industry. According to a recent report by 451 Research, an S&P Global Market Intelligence company, mergers and acquisitions in the cybersecurity sector have increased. The number of deals throughout the first six months of 2022 was 10% higher than that of the previous year. Not only does this speak to a greater emphasis on cybersecurity and the rising demand around it, including regulations, but it also reflects ongoing consolidation of a fragmented sector filled with vendors.

Another survey by Gartner, Inc. polled 418 respondents from North America, Asia Pacific and EMEA to understand more about this cybersecurity market trend. It concluded that “75% of organizations are pursuing security vendor consolidation in 2022, up from 29% in 2020.” Companies are mainly seeking out such business opportunities in order to cut complexity when putting security measures into place. 

Key Takeaways:

“Google Boosts Cybersecurity Offerings, Buys Mandiant for $5.4 Billion” – Bree Fowler, CNET

https://www.cnet.com/tech/services-and-software/google-closes-deal-to-buy-mandiant-for-more-than-5-billion/

  • Google completed its nearly $5.4 billion acquisition of Mandiant.
  • While maintaining its own brand, Mandiant will now exist under Google Cloud.
  • As Google explained in a blog post, this deal offers the company a major opportunity to expand its security capabilities.

“Google completes $5.4B acquisition of cybersecurity provider Mandiant” – Maria Deutscher, Silicon ANGLE

https://siliconangle.com/2022/09/12/google-completes-5-4b-acquisition-cybersecurity-provider-mandiant/

  • By purchasing Mandiant, Google plans to combine features.
  • In addition to Google Cloud’s pre-existing security tools, they will now also have access to Mandiant’s resources that allow organizations to “evaluate the effectiveness of their cloud and on-premises breach prevention systems,” according to Silicon ANGLE.
  • Google has been working on other security initiatives including VMTD, a malware detection technology.

“Consolidation in the Cybersecurity Sector Ramps Up, as Valuations Drop” – Vishesh Raisinghani, Mergers & Acquisitions

https://www.themiddlemarket.com/news-analysis/consolidation-in-the-cybersecurity-sector-ramps-up-as-valuations-drop

  • According to a recent report by 451 Research, an S&P Global Market Intelligence company, mergers and acquisitions in the cybersecurity sector have increased.
  • The number of deals throughout the first six months of 2022 was 10% higher than that of the previous year.
  • Not only does this speak to a greater emphasis on cybersecurity and the rising demand around it, including regulations, but it also reflects ongoing consolidation of a fragmented sector filled with vendors.

“Gartner Survey Shows 75% of Organizations Are Pursuing Security Vendor Consolidation in 2022” – Gartner

https://www.gartner.com/en/newsroom/press-releases/2022-09-12-gartner-survey-shows-seventy-five-percent-of-organizations-are-pursuing-security-vendor-consolidation-in-2022

  • Gartner, Inc. polled 418 respondents from North America, Asia Pacific and EMEA to understand more about the cybersecurity consolidation trend.
  • It concluded that “75% of organizations are pursuing security vendor consolidation in 2022, up from 29% in 2020.”
  • Companies are mainly seeking out such business opportunities in order to cut complexity.
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