Google is spending $5.4 billion to acquire cyber security firm Mandiant in an attempt to bolster the company’s internal cybersecurity resources. The deal, announced on March 8, 2022, is subject to regulatory approval, but the company expects to close the purchase before the end of the year.
Google’s acquisition of this platform and the consulting services that Mandiant can offer can have a huge impact on the cloud security landscape.
Mandiant Prepares to Harden Security in Google’s Existing Cloud
Mandiant, founded in 2004, is best known for its security platform, the “Mandiant Advantage Platform,” and its role in investigating some of the biggest security events of the last decade.
According to Google’s deal announcement, Mandiant, combined with existing “Google Cloud cloud-native security offerings,” will help Google Cloud customers stay protected by extending Google’s cloud security offerings. in five key areas: “advisory services, threat detection and intelligence, automation and response tools, testing and validation, and managed defense.”
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Both Mandiant’s existing cybersecurity platform and consulting services offered by Mandiant will be available to Google Cloud customers, with Mandiant services acting as a “seamless extension of customers’ security teams.”
If successful, the Mandiant deal will be Google’s second most expensive acquisition to date, behind its $12.5 billion purchase of Motorola Mobility and ahead of its $3.2 billion purchase of Nest. Mandiant will become part of the Google Cloud division.
Biggest impact on cloud security
The Mandiant acquisition is, in a way, an unusual move by Google. Google has invested in other cloud security products in the past, such as the company’s partnership with Lookout that produced a zero-trust solution for Google Workspace.
However, the size of Mandiant’s cybersecurity deal is much larger than any of these previous investments. The value of the deal also seems significant in light of Google Cloud’s disappointing performance in recent years.
Right now, Google’s cloud division accounts for just 7% of the global market, far behind Microsoft Azure (17%) and Amazon Web Services (32%).
Google Cloud is growing fast. According to Google parent company Alphabet during the Q3 2021 earnings call division revenues increased by 45% in the quarter to $4.99 billion, up from $3.44 billion in the third quarter of 2020. Despite this growth, Google Cloud failed to turn a profit. The division was able to cut operating losses in half compared to the prior year’s loss, from $1.2 billion to $644 million.
Much of Google Cloud’s growth has come from expanding the broader cloud market, and the division has struggled to secure cloud share from Microsoft or Amazon. As a result, when cloud growth slowed in 2021, Google Cloud’s growth slowed as well.
part of the plan
Investing in cyber security is probably part of Google’s larger plan to beat Amazon and Microsoft in the cloud.
Data breaches and ransomware attacks are becoming more frequent and more expensive to manage. At the same time, cybersecurity professionals are in short supply. Companies that want to bolster their cybersecurity talent pool need talent acquisition teams with the Skills Required for Tech Recruitment and the resources for a long and difficult search for talent.
As cybersecurity becomes an increasingly important topic for large enterprises, Google can use security offerings as a selling point to differentiate Google Cloud from its competition.
Mandiant’s cybersecurity purchase could signal a change in the overall cloud landscape. Leading cloud providers can increase investment in security products and consulting services. Expanding security offerings can help providers keep their networks secure and prevent attacks.
The union of Google and Mandiant will help strengthen the security of Google Cloud customers. In the long term, the purchase could also have a serious impact on cloud providers in general.
As cyber security becomes more important to businesses, cloud security may become a more critical feature, encouraging vendors to invest in and promote security offerings.