Palo Alto Networks Is Buying Security Assets From IBM

Palo Alto Networks is acquiring IBM's QRadar cloud software and migrating customers to its Cortex Xsiam platform as part of a broader partnership aimed at expanding its consulting capabilities and customer base. The sum of the deal was not disclosed. CNBC reports: The move normally takes one to three months, Nikesh Arora, Palo Alto's CEO, told CNBC. Also, IBM will train more than 1,000 of its consulting employees on Palo Alto's products. [...] For IBM, a more robust lineup of contemporary security tools for consulting might help the company deliver on its stated goal of revenue growth in the mid-single digits for 2024. In the first quarter, revenue increased 3%, with a 2% bump in the consulting segment.

Palo Alto is growing much faster than IBM. In the January quarter, revenue jumped 19%. The company will report results for the latest quarter on Monday. Palo Alto more than doubled in value last year and its stock is up 6% year to date, lifting the company's market cap past $100 billion. The stock rose more than 1% in extended trading. IBM is up close to 5% this year and is now valued at $154 billion. The companies said the transaction should close by the end of September, subject to regulatory approval and other conditions. [...] IBM will continue to sell its QRadar software for use in on-premises data centers. At the same time, IBM will suggest that clients using it consider switching to Palo Alto's Cortex Xsiam.

What's the long term play here?

[Bandraginus]

I find it odd that IBM recently acquires HashiCorp to boost their cloud infrastructure capability, but then secede ground around cloud security. Is QRadar in the cloud just a crap product that they're happy to let go, or can anybody see a larger plan emerging here?

Re:

[laughingskeptic]

It sounds like QRadar in the cloud is just QRadar running in the cloud. It has connectors for cloud log sources, but it doesn't have any baked-in understanding of cloud architecture. The cloud network is just another network and cloud logs are just more logs. Google Trends shows Cortex at 25X QRadar pretty consistently for the last 5 years. Cyber tools require constant investment and never become cash cows. IBM found a company that they hope to bill consulting hours with and an opportunity to ditch a pr