Google is planning its largest acquisition to date by acquiring cloud security company Wiz for $32 billion in an all-cash deal.
This move reinforces Google Cloud’s commitment to expanding its security capabilities as it competes with Amazon Web Services (AWS) and Microsoft Azure, both of which have ramped up their cybersecurity investments.
The acquisition is particularly notable because Wiz has emerged as a dominant player in cloud security, providing agentless scanning that enables companies to identify threats and vulnerabilities across multi-cloud environments.
However, the deal is expected to face regulatory scrutiny, particularly from U.S. antitrust authorities, over concerns about how it could affect competition in the cloud security sector.
Google’s most significant acquisition remains the 2012 purchase of Motorola Mobility for $12.5 billion. The company subsequently offloaded most of Motorola’s assets to Lenovo for $2.9 billion in 2014. More recently, Google terminated acquisition talks with sales software company HubSpot.
Wiz’s Rapid Growth and Market Position
Founded in 2020 by a team of former Microsoft security executives, Wiz has grown at an unprecedented pace. The company provides security visibility across AWS, Microsoft Azure, Google Cloud, and Oracle Cloud Infrastructure without requiring software agents, simplifying deployment at scale.
As of early 2024, Wiz had secured nearly half of the Fortune 100 as customers, including Morgan Stanley, BMW, and LVMH.
The startup achieved $500 million in annual recurring revenue (ARR) and had been preparing for an initial public offering (IPO) before agreeing to Google’s acquisition offer.
Wiz had previously rejected a $23 billion buyout offer from Google in 2024, opting instead to pursue an IPO amid expectations of an even higher valuation. However, Google’s revised $32 billion offer, combined with the strategic opportunity to expand its security capabilities at scale, led to the eventual agreement.
A $32 Billion Bet on Multi-Cloud Security
Google Cloud remains the third-largest cloud provider, with around 12% global market share, trailing AWS and Microsoft Azure. Security has become a crucial differentiator for cloud services, as enterprises increasingly rely on advanced protection against cyber threats.
The acquisition strengthens Google Cloud’s security portfolio, integrating Wiz’s multi-cloud security analytics into its existing offerings, including Chronicle Security Operations and Threat Intelligence.
According to an announcement from Wiz, “We both also believe Wiz needs to remain a multicloud platform, so that across any cloud, we will continue to be a leading platform. We will still work closely with our great partners at AWS, Azure, Oracle, and across the entire industry.”
“Google has open sourced TensorFlow and many other tools and research to help advance AI. Google Cloud builds some of the most scalable and secure products in the world, and together we want to utilize these cutting-edge technologies to accelerate Wiz and help every team in the world get the most advanced cloud security possible.”
Beyond bolstering Google Cloud’s defenses, the deal positions Google as a direct competitor to Microsoft in enterprise cybersecurity, a sector Microsoft has heavily invested in with products like Defender for Cloud and Sentinel.
Regulatory Concerns Could Complicate the Deal
While Google and Wiz have emphasized the security benefits of the deal, regulators are likely to scrutinize the acquisition for potential anti-competitive effects. The Federal Trade Commission (FTC) is expected to review whether Google’s ownership of Wiz could limit competition in multi-cloud security.
Industry experts have raised concerns that Google may restrict access to Wiz’s technology for AWS and Azure customers, though Google has denied any such plans. European regulators are also likely to examine the deal given the increasing reliance on cloud security solutions in critical infrastructure.
Anticipating a possible blocking of the deal, Google promises that Wiz will be available for the solutions of its competitors, stating:
“Wiz’s products will continue to work and be available across all major clouds, including Amazon Web Services, Microsoft Azure, and Oracle Cloud platforms, and will be offered to customers through an array of partner security solutions. Google Cloud will also continue to offer customers wide choice through a variety of partner security solutions available in the Google Cloud Marketplace.”
To address potential regulatory roadblocks, Google has reportedly included a $1 billion employee retention package for Wiz staff and structured a break-up fee in case the deal is blocked by regulators.
What This Means for the Cloud Security Industry
Google’s acquisition of Wiz is part of a broader trend of consolidation in cybersecurity. With rising threats and increasing cloud adoption, demand for robust security tools has surged.
The move could pressure competitors like Palo Alto Networks, CrowdStrike, and SentinelOne to seek acquisitions of their own.
However, industry observers caution that the integration of Wiz into Google Cloud must be carefully managed. While Wiz has built its reputation on being a neutral, cross-cloud security provider, its Google ownership could create conflicts of interest for customers who use AWS and Azure alongside Google Cloud.
As AI-driven cloud security becomes a key battleground, Google is betting that Wiz’s advanced analytics will enhance its enterprise offerings. Whether the acquisition succeeds in helping Google close the gap with Microsoft and AWS will depend not only on regulatory approval but also on how effectively Wiz’s technology is integrated into Google Cloud’s ecosystem.
