In What Amount Does Google Has Acquired Wiz And Why? How Can It Be A Big Move In Cloud Security?
Google’s parent company, Alphabet, has made a huge announcement! Google Has Acquired Wiz, a fast-growing company for a whopping $32 billion. This is a really big deal for Google, and it’s all about making their cloud services even better and safer. In the world of computers, “cloud computing” is like renting space on someone else’s computer to store your stuff or run programs. Companies like Google, Amazon, and Microsoft offer these cloud services.
This purchase will make Wiz a part of Google’s cloud business. Wiz helps companies find and fix security problems in their cloud systems. With Wiz, Google wants to give businesses even stronger tools to protect their important information. This is especially important because more and more companies are using cloud services, and they need to make sure their data is safe from bad guys who might try to steal it or cause problems.
Why Did Google Buy Wiz?
Google’s big buy of Wiz is all about boosting its cloud security game.
- To Compete Better: Google wants to be a bigger player in the cloud computing market, where it’s competing with giants like Amazon and Microsoft. By adding Wiz’s powerful security tools, Google hopes to attract more customers who need top-notch protection for their data.
- To Offer Stronger Security: In today’s world, cybersecurity is super important. Companies need to protect their information from hackers and other threats. Wiz has great technology that helps find and fix security problems in cloud systems. Google wants to give its customers the best possible security.
- To Help Customers: Many companies use more than one cloud provider (like using both Google Cloud and Amazon Web Services). Wiz’s technology works across different cloud platforms, which is something that many customers want. Google wants to make it easier for companies to secure all their cloud systems.
What Does Wiz Do?
Wiz is a company that helps other companies stay safe when they’re using cloud computing.
- Finds Security Problems: Wiz’s technology scans cloud systems to find potential problems, like weaknesses that hackers could use to break in.
- Protects Important Information: Wiz helps companies protect their data, applications, and other important stuff that they store in the cloud.
- Works with Different Clouds: Wiz’s technology can work with different cloud providers, like Amazon Web Services, Microsoft Azure, and Google Cloud. This is important because many companies use more than one cloud.
The Big Price Tag: Why $32 Billion?
The amount Google is paying for Wiz is huge! There are a few reasons why it’s so high.
- Wiz is Growing Fast: Wiz is a very successful company. It makes a lot of money and is growing quickly. This makes it very valuable.
- Google Needs Wiz: Google wants to improve its cloud security, and Wiz has the technology and expertise that Google needs.
- To Win the Deal: Other companies might have been interested in buying Wiz too. Google had to offer a high price to make sure they won the deal.
- Wiz was valued at $12 billion in a private funding round last May, with more than $500 million in annual recurring revenue as of mid-2024.
- To nail down the acquisition, Alphabet had to agree to a heavier price than last year’s $23 billion bid for Wiz, which the Israeli startup had rejected.
What Happens Now? Wiz and Google Cloud
Wiz will become part of Google’s cloud business, but it won’t be exclusive to Google Cloud.
- Wiz Stays Available: Wiz’s products will still be available on other cloud platforms, like Amazon Web Services and Microsoft Azure. This is important for companies that use more than one cloud.
- Google Cloud Gets Stronger: By adding Wiz’s technology, Google Cloud will become a more attractive option for businesses that need strong security.
- Better Security for Everyone: The combination of Google Cloud and Wiz’s technology will help make cloud computing safer for everyone.
Regulatory Concerns: Will the Deal Go Through?
Because Google is a very big company, some people are wondering if the deal to buy Wiz will be allowed.
- Antitrust Scrutiny: Governments sometimes check big deals to make sure they don’t hurt competition. This is called “antitrust scrutiny.”
- Google’s Size: Google is a very large company, and some people worry that it has too much power.
- Wiz’s Availability: The fact that Wiz will still be available on other clouds might help ease some of these concerns.
- Alphabet has agreed to a heavier price than last year’s $23 billion bid for Wiz, which the Israeli startup had rejected.
- Wiz has agreed to a termination fee of more than $3.2 billion, a source told Reuters, one of the highest fees in M&A history.
Why is Google Cloud Behind Wiz?
Google Cloud is a big player, but it’s not as big as Amazon Web Services (AWS) and Microsoft Azure.
- Early Start: AWS got started earlier than Google Cloud, which gave them a head start.
- Microsoft’s Strengths: Microsoft has a lot of business customers and a strong ecosystem of products, which gives them an edge.
- Google’s Focus: Google has always been very strong in areas like search and advertising. They are now working hard to catch up in the cloud.
- As of Q4 2024, Statista data shows that AWS had a 30% share of the global cloud market, with Azure in second place with 21%. Google Cloud trails significantly behind them at 12%.
How AI Changes the Game?
Artificial intelligence (AI) is changing the world of cloud computing.
- AI and Cloud: AI requires a lot of computing power, which cloud services provide.
- Centralized Data: AI might cause companies to store all their data in one place, which could change how they use cloud security.
- New Security Needs: AI also brings new security challenges, like protecting AI models from attacks.
- AI architectures might cause large enterprises to pool data from multiple places to a central cloud provider, Kurian said. If that happens, then multi-cloud protection may become less critical, but security for their centralized cache of data will be.
What This Means for the Future?
Google’s purchase of Wiz is a sign of how important cloud computing and cybersecurity are becoming.
- More Competition: This deal will likely lead to more competition in the cloud market, which is good for customers.
- Better Security: Companies and governments will have access to better tools to protect their data.
- Innovation: This deal could lead to new innovations in cloud computing and cybersecurity.
- The latest deal is another sign that Israel’s cybersecurity industry punches well above its weight.
- Several security companies based in Israel or founded by Israelis have been acquired by Silicon Valley giants, including Siemplify, which was bought by Alphabet in 2022, and Own, which Salesforce acquired in 2024.
Reaction from Complete Circle CIO Gurmeet Chadha
The news of Amazon’s latest round of layoffs has drawn sharp criticism from Complete Circle CIO Gurmeet Chadha, who took to X to express his frustration over corporate jargon and AI-driven job cuts.
- Chadha’s criticism: Commenting on Amazon’s decision to lay off more employees, Chadha wrote, “Amazon is laying off 10000 more people after laying off 18k in November. They call their HR heads as People Experience Head, Chief People Officer, and fancy names… employees r called families. Sab drama!!”
- Taking a strong stance against mass layoffs in the name of innovation, Chadha argued that disruptive technology should not come at the cost of people’s livelihoods. “AI or any disruption which brings misery to our own people is useless.”
- He also invoked Guru Nanak Dev’s philosophy of ‘Sarbat da Bhalla’ (welfare of all), stressing that people’s well-being should be at the core of any innovation. “Call me old school but I value people more than anything else. Any innovation, as Guru Nanak Devji said, should keep people’s welfare (Sarbat da Bhalla) as the core.”
- Chadha’s remarks come amid Amazon CEO Andy Jassy’s aggressive restructuring efforts to reduce middle management and increase efficiency. Jassy had initially targeted a 15% reduction in middle managers by Q1 2025, but the company has already surpassed this goal.
- In a Bloomberg interview, Jassy justified the move, stating, “You add a lot of people and you end up with a lot of middle managers. And those middle managers, all well-intended, want to put their fingerprint on everything.”
- The strategy is meant to empower employees with greater autonomy, making them take ownership of their work instead of relying on multiple layers of management. Jassy even criticized the corporate culture of excessive pre-meetings, saying, “So you end up with these people being in the pre-meeting, for the pre-meeting, for the pre-meeting, for the decision meeting.”
- Interestingly, Amazon’s shift towards fewer managers has been well-received by Gen Z employees, who favor self-management over traditional hierarchies. A survey by Robert Walters found that 52% of Gen Z workers prefer to avoid middle management roles, while 72% want career progression without supervisory responsibilities.
- Despite this, Amazon’s return-to-office policy remains a sore point. The company mandates employees to work in-office five days a week, a decision supported by AWS CEO Matt Garman, who insists that true innovation is difficult to achieve remotely. However, this has led to employee backlash, with many opting to “rage apply” for new jobs and even writing letters to leadership in protest.
- Amazon’s decision to eliminate middle managers aligns with a broader industry trend called ‘conscious unbossing’, where companies reduce managerial oversight to promote individual growth and efficiency. Tech giants like Meta and Google are also making similar shifts.
FAQs:
- What is Google buying?
Google is buying a cybersecurity company called Wiz. - How much is Google paying?
Google is paying $32 billion. - Why is Google buying Wiz?
To improve its cloud security and compete better. - Will Wiz still work with other clouds?
Yes, Wiz will still work with other cloud platforms. - Is this a big deal?
Yes, this is a very big deal in the world of cloud computing.
Conclusion: Google Has Acquired Wiz
Google’s decision to buy Wiz is a major move in the world of cloud computing. It shows how important cybersecurity has become and how companies are investing heavily to protect their data. This deal could lead to better security and more innovation in the cloud, which will benefit businesses and governments around the world.
This acquisition highlights the ongoing competition in the cloud market and Google’s efforts to catch up with its rivals. By strengthening its security offerings, Google aims to attract more customers and solidify its position as a leading cloud provider. The future of cloud computing is sure to be exciting, with more advancements and innovations on the horizon.
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