Not long ago did we mention how Cybersecurity is becoming a major concern for global enterprises, driving downstream spending. Well, Google decided to act.
Pichai’s move: Alphabet will spend $5.4 billion, all cash, on buying out cybersecurity company, Mandiant, to beef up cybersecurity offerings through Google Cloud.
Mandiant (earlier called FireEye) basically sells a suite to large companies to identify breaches at scale, and helps enterprises craft and execute an effective response strategy — which basically includes assessing what was exposed, what needs to be fixed and such.
Barely a month ago actually, they had approached Microsoft for a takeout, but we’re guessing the two teams couldn’t agree on a price and the deal fell through. Google quietly sneaked in! 🥱
Google is preparing for The Great Cloud Wars of the 20s: Amazon (AWS), Microsoft, and Google, are fighting it out for the $175 billion+ cloud hosting and infrastructure services market. Amazon’s AWS leads the game today, but Microsoft has been catching up fast under Satya’s leadership. This acquisition should help No.3 player Google Cloud compound its 10% market share at a much faster pace.
Lastly, Mandiant has deep distribution, channel partnerships, and relationships with all different kinds of enterprise customers — which could be great for Google to upsell/cross-sell other services too.
Worth mentioning — despite many believing Google is fighting a lost race, for 2021 Google Cloud accelerated growth to ~47% YoY! Thomas Kurian is nailing it on the job.