Google Cloud-Wiz ‘Absolutely’ Puts Heat On Microsoft, AWS Security: Partners

Google Cloud-Wiz ‘Absolutely’ Puts Heat On Microsoft, AWS Security: Partners

  • 18.03.2025 16:52
  • crn.com
  • Keywords: Acquisition

Google Cloud’s $32 billion acquisition of Wiz aims to enhance competition with Microsoft and AWS in cloud security. Partners view it as a direct challenge to Microsoft’s leadership but doubt its impact on AWS market share.

Microsoft ServicesMSFTsentiment_dissatisfied
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Estimated market influence

Google Cloud

Positivesentiment_satisfied
Analyst rating: N/A

Google Cloud acquired Wiz for $32 billion to enhance their security offerings and compete with Microsoft and AWS.

Microsoft

Microsoft

Negativesentiment_dissatisfied
Analyst rating: Strong buy

The acquisition of Wiz by Google Cloud is seen as a direct response to Microsoft's strong position in AI and security, potentially increasing competition against them.

AWS

Negativesentiment_dissatisfied
Analyst rating: N/A

While AWS may face some impact from the Wiz acquisition, it's expected to be minimal as customers are unlikely to switch en masse. The relationship between Wiz and AWS might weaken slightly.

Context

Analysis and Summary: Google Cloud-Wiz Acquisition Impact

Key Facts and Data Points

  • Acquisition Details:

    • Google Cloud acquired Wiz for $32 billion, marking Google’s largest acquisition in history.
    • Deal is subject to regulatory approvals; no timeline provided for closure.

  • Wiz Market Presence:

    • Serves 50% of global Fortune 100 companies.
    • Known for multi-cloud security solutions and integration across hybrid environments.

Market Implications

  • Enhanced Competition in Cloud Security:

    • Google Cloud aims to strengthen its position against Microsoft Azure and AWS, particularly in cloud security.
    • Wiz’s native integration with Google Cloud will boost competitiveness in multi-cloud environments.

  • Impact on Microsoft:

    • Partners view the acquisition as a direct response to Microsoft’s momentum in AI and security.
    • Microsoft is seen as leading in midmarket and enterprise security, with strong channel support and product integration.

  • AWS Dynamics:

    • AWS partners expect reduced collaboration with Wiz post-acquisition.
    • Potential long-term impact on AWS-Wiz relationships but unlikely to prompt immediate customer migrations.

Competitive Landscape

  • Google’s Strategic Move:

    • Acquisition reflects Google’s efforts to close the gap with Microsoft in AI and security.
    • Focuses on capturing market share, particularly in multi-cloud environments.

  • Microsoft’s Strengths:

    • Leads in integrated AI and security solutions (e.g., Microsoft Security Defender).
    • Strong channel partnerships and product ecosystem provide a competitive edge.

  • AWS Positioning:

    • AWS remains a robust player with significant security investments.
    • Partners anticipate reduced Wiz support but expect AWS to maintain its market leadership.

Long-Term Effects

  • Customer Dynamics:

    • Some customers may migrate from Google Cloud to Azure, as seen in iCorps Technology’s experience (50 customer migrations over two years).
    • Microsoft’s integrated platform and AI-driven security tools are seen as superior by partners.

  • Regulatory Considerations:

    • Deal outcome depends on regulatory approvals, which could impact market dynamics.

Strategic Considerations

  • Channel Partners’ Views:

    • Google Cloud needs to leverage Wiz’s multi-cloud capabilities effectively to compete with Microsoft and AWS.
    • Microsoft’s channel-friendly approach and product depth remain significant advantages.

  • Investment Trends:

    • Microsoft’s continued investment in security software underscores its commitment to maintaining market leadership.
    • Google’s acquisition signals a shift toward aggressive competition, particularly in AI-driven security solutions.

Conclusion

The $32 billion acquisition of Wiz by Google Cloud is a significant move to enhance its cloud security offerings and compete more effectively against Microsoft and AWS. While the deal may pressure Microsoft, AWS partners expect minimal immediate impact. Long-term success for Google will depend on effective integration of Wiz’s capabilities and closing regulatory hurdles.