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Here’s why Google pitched its $32B Wiz acquisition as ‘multicloud’

Here’s why Google pitched its $32B Wiz acquisition as ‘multicloud’

  • 18.03.2025 12:14
  • techcrunch.com
  • Keywords: Antitrust, Market Share

Google acquired Wiz for $32 billion to position it as a multicloud security service, aiming to retain hybrid cloud customers, navigate antitrust risks, and compete with AWS and Azure while avoiding vendor lock-in.

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Estimated market influence

Google

Negativesentiment_dissatisfied
Analyst rating: N/A

Google is acquiring Wiz to enhance its multicloud capabilities and address customer retention issues. However, the acquisition may face antitrust scrutiny due to Google's existing dominance in certain areas.

Wiz

Positivesentiment_satisfied
Analyst rating: N/A

Wiz brings significant revenue and a large customer base to Google, which could help improve Google Cloud's market position. Wiz's multicloud capabilities are seen as a strategic asset for Google.

Context

Analysis of Google's $32B Wiz Acquisition: Business Insights and Market Implications

Customer Retention

  • Wiz's Customer Base: Wiz has a massive customer list with an annual revenue rate of $700 million as of now, projected to grow to $1 billion.
  • Multicloud Importance: Many customers use hybrid cloud arrangements and do not currently use Google Cloud. Wiz’s ability to support multiple cloud platforms was a key reason for their choice.
  • Risk of Alienation: If Google restricts multicloud capabilities, it risks losing these customers to other security providers.

Antitrust Regulation

  • Regulatory Climate: The U.S. under the Trump administration has shown a more favorable stance toward Big Tech M&A, with mixed opinions on antitrust enforcement.
  • U.K. Openness: Regulators in the U.K. have signaled openness to hyperscaler deals as part of broader business-friendly initiatives.
  • Strategic Positioning: Google’s multicloud positioning can help mitigate antitrust concerns by emphasizing competition and avoiding dominance in cloud services.

Google Cloud's Market Position

  • Market Share: As of Q4 2024, AWS leads with 30%, Azure follows with 21%, while Google Cloud trails at 12%.
  • Lagging Reasons: Google’s delay is attributed to AWS’s early start and Microsoft’s ecosystem advantages, including OpenAI partnerships.
  • Future Potential: Google Cloud CEO Thomas Kurian believes AI could centralize data on a single cloud provider, reducing reliance on multicloud solutions.

Strategic Considerations

  • Multicloud Pitch: Google positions Wiz as a multicloud solution to cater to customers seeking security across multiple platforms and avoid vendor lock-in.
  • Customer Appeal: The deal aims to attract enterprises by offering flexibility in IT investments and aligning with their existing cloud strategies.

Long-Term Effects

  • Regulatory Scrutiny: The success of the acquisition hinges on regulators accepting Google’s multicloud narrative as a procompetitive move.
  • Market Dynamics: The deal underscores the growing importance of multicloud security in an increasingly fragmented cloud market.