Palo Alto Networks Acquires Cloud-Based Company Aporeto

Palo Alto Networks continues its string of acquisitions by incorporating Aporeto, a cloud-based, machine-identity-based microsegmentation company, for $150 million.

This acquisition marks the eighth such venture by Palo Alto over the last two years, which seemed to disappoint investors while intriguing security professionals. As Palo Alto seeks to solidify itself as a cloud-centric cybersecurity services provider, the question remains whether it can stitch together these multiple acquisitions into a seamless service for customers.

After the acquisition, Palo Alto Networks’ stock plunged despite the security software company beating estimates in its quarterly earnings report. However, though the acquisition affected its stock, it fits Palo Alto’s larger plan to move into a full-fledged cloud security service provider. Aporeto, according to a Palo Alto news release, “identifies workloads and applies microsegmentation across all infrastructures, helping customers secure their applications at scale.” As part of its strategy to move to the cloud, Palo Alto’s acquisition will be attractive to enterprises that are not only looking to move to the cloud but also pursuing zero trust as the overall strategy for their cybersecurity.

Source: Next Generation Firewall at SoftwareReviews, Report Published October 2018

Our Take

The big shift in the cybersecurity market is the move to platforms that will allow organizations to leverage the entire toolset of a given vendor. Palo Alto’s acquisition of Aporeto is part of this larger trend, and it is now up to the company to make sure that it can bring all of its recent acquisitions together into an easy-to-use and integrated platform.

The disjointed cybersecurity infrastructure of the past attempted to use security controls for individual problems. The move towards platforms seeks to rectify this and makes Palo Alto’s acquisition strategy something to watch in 2020.