Google has confirmed the purchase of cloud cybersecurity startup Wiz for $32 billion. This will be an all-cash deal and is considered one of the biggest acquisition deals in Google's history. Google's parent company Alphabet had earlier acquired a cybersecurity company called Mandiant in 2022 for $5.4 billion. Wiz will also be included in Google's Cloud Services division, which is less influential than Google's main search business.

Google had previously tried to buy Wiz in 2024, but that $23 billion deal was rejected by the company's co-founders. Now Google has finalized the deal again by paying about $10 billion more. The acquisition is likely to be completed by 2026, depending on regulatory approvals and other formal processes.

Why does Google need Wiz?

This acquisition of Google is happening at a time when competition in the cloud service market has intensified. Companies like AWS (Amazon Web Services) and Microsoft Azure are competing for cloud services to host generative AI. Google has only a 15% share in the cloud market, which is much less than AWS and Azure. In such a situation, Google wants to strengthen its cloud business through Wiz's advanced cybersecurity technology.

What does Wiz do?

Wiz is a cloud security startup, that was started in 2020 by Assaf Rappaport, Ammi Luttwak, and Roy Reznik in Tel Aviv, Israel. Earlier, these founders sold their first cybersecurity company Adallom to Microsoft in 2015 for $320 million. The company earned annual revenue of $100 million in just 18 months. In 2024, it raised $1 billion in funding at a valuation of $12 billion. Its main investors include Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital.

Services of Wiz

Cloud security solutions that can prevent, detect, and respond to cyber attacks.

Multi-cloud support, that is, its services are also available on AWS, Google Cloud, Azure and Oracle.

The complexity of cyber attacks is increasing due to the growing generative AI technology, which Wiz can handle effectively.

Wiz's customers include giants like AWS, Google, Microsoft Azure and Oracle. It also has a presence in India, where 116 of its 2,500 employees are Indian employees.

Why is this deal important for Google?

Google has clarified that Wiz's multi-cloud model will continue even after the acquisition. This means that Google will not limit Wiz's services to its Google Cloud only, but will also allow it to work on cloud platforms like AWS, Azure and Oracle. After this deal, Google can establish itself as a leading multi-cloud service provider. The acquisition of Wiz will give Google an opportunity to make profits in the fast-growing cybersecurity market.

Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.