Acquisition expands vendor’s automation capabilities and accelerates Application Framework strategy
Palo Alto Networks on Tuesday snapped up security automation vendor Demisto in a $560 million cash and stock deal that adds significant analytics and automation heft to Palo Alto’s Application Framework platform.
The Lowdown: The move gives Palo Alto entree into the the booming security orchestration, automation, and response (SOAR) market. Demisto has more than 150 enterprise customers, including large organizations in health care, technology, and financial services, officials said.
The Details: Once the deal closes, Palo Alto will be looking to blend Demisto’s technology with its own AI- and machine learning-driven solutions for automating security operations. According to Palo Alto officials, the Demisto automated playbooks can reduce the number of routine security alerts that must be reviewed by an analyst by up to 95 percent.
The Impact: Demisto’s products will continue to be available to customers and partners after the transaction closes, the company said.
Background: The SOAR market is steadily gaining momentum, both among enterprises and with MSSPs, as the technology provides a way to more effectively deal with increased alerts; disparate, poorly integrated security point products; and a shortage of skilled security analysts. Roughly 70 percent of organizations are expected to add SOAR capabilities to their dedicated SOCs by 2021, up from just 5 percent today, according to Gartner.
The Buzz: “We are delighted to welcome Demisto into the Palo Alto Networks family,” said Nikesh Arora, chairman and CEO of Palo Alto. “Coupled with our Application Framework, Demisto will help us strengthen our commitment to security teams by delivering a platform that provides higher levels of integration, automation, and innovation to prevent successful cyberattacks.”
“We have dedicated ourselves to the challenge of automation because we believe that relying on people alone to combat threats will fail against the scale of today’s attacks,” said Slavik Markovich, CEO of Demisto. “Palo Alto Networks’ strategy resonates with our own vision. And we have found a like-minded team that shares our conviction that the future of security is all about automation and AI. We’re thrilled to be joining them to help make it a reality.”