Big Tech’s Cybersecurity Battle Intensifies With Google’s $32B Play for Wiz

Google has agreed to buy Wiz, a New York-based cloud security company, for $32 billion in cash. Once the deal is complete, Wiz will become part of Google Cloud to improve its security services. This purchase shows Google Cloud’s focus on strengthening cloud security, especially as more companies use AI and multiple cloud services.

Google’s $32 billion offer is significantly higher than the $23 billion it reportedly proposed last year before antitrust concerns led Wiz to pause the deal. The Wall Street Journal first reported on Monday that the two companies were in advanced negotiations.

In July, CNBC reported that Wiz had turned down Google’s earlier $23 billion offer and informed employees of plans to go public instead.

With this all-cash acquisition, Google Cloud will strengthen its cybersecurity capabilities by integrating Wiz’s AI-powered security solutions, which help businesses detect and eliminate critical risks. This move positions Google Cloud to better compete in a rapidly growing industry driven by the rise of generative AI services like ChatGPT.

Why did Google acquire Wiz?

Several strategic factors drive Google's acquisition of Wiz for $32 billion:​

• Enhancing cloud security: Integrating Wiz's advanced cybersecurity tools strengthens Google Cloud's defenses, addressing the increasing demand for robust cloud security solutions. ​
• Advancing AI initiatives: Wiz's AI-driven security capabilities align with Google's focus on artificial intelligence, ensuring secure deployment of AI applications and safeguarding against evolving threats. ​
• Expanding multi-cloud support: Wiz's compatibility with major cloud providers like AWS and Azure enhances Google Cloud's multi-cloud offerings, attracting clients seeking flexible and secure cloud environments. ​
• Accelerating market competitiveness: This acquisition positions Google to better compete with cloud service leaders Amazon and Microsoft, offering enhanced security features that appeal to enterprise customers. ​
• Responding to industry trends: With the rise of cyber threats and recent high-profile security incidents, acquiring Wiz demonstrates Google's commitment to proactive cybersecurity measures, reinforcing trust among existing and potential clients. ​

These strategic moves underscore Google's dedication to bolstering its cloud services and addressing its customers' evolving security needs.

“Today, businesses and governments that run in the cloud are looking for even stronger security solutions, and greater choice in cloud computing providers. Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds.”

Sundar Pichai
CEO, Google 

The G2 Take

While the price tag is jaw-dropping, this acquisition isn’t surprising based on G2 data. Wiz has seen extraordinary growth in the cloud security posture management (CSPM) category, with customer satisfaction scores consistently outpacing competitors. 

All of this highlights why Google is willing to pay such a premium for the company.

The acquisition comes at a time when organizations are increasingly struggling with security challenges across multi-cloud environments. G2's latest Buyer Behavior Report shows that 48% of software buyers go ahead with purchases without conducting proper security vetting. 28% of buyers skirt assessments because of timely business needs.

In the age of AI, where moving fast is paramount to remain competitive, this is likely only going to make security a larger challenge.

Previous cybersecurity investments by Google

Google has made several significant investments in cybersecurity over the years to enhance its security offerings and protect its users. Notable investments include:​

• Mandiant Acquisition (2022): In 2022, Google acquired Mandiant, a leader in dynamic cyber defense, threat intelligence, and incident response services, for $5.4 billion. This acquisition aimed to bolster Google Cloud's security capabilities and provide comprehensive security operations to its customers. ​
• Siemplify Acquisition (2022): Google purchased Siemplify, a leading security orchestration, automation, and response (SOAR) provider, to enhance security operations and help companies manage threat responses more effectively.
• $10 Billion Cybersecurity Commitment (2021): Google announced a $10 billion investment over five years to strengthen cybersecurity, including expanding zero-trust programs, securing software supply chains, and enhancing open-source security. ​
• Cybersecurity Clinics Fund (2024): To address the shortage of cybersecurity professionals, Google.org invested over $25 million to support the launch of 25 cybersecurity clinics across the U.S. by 2025, providing hands-on experience to students and helping local organizations defend against cyber threats. ​
• AI Cyber Defense Initiative (2023): Google launched the AI Cyber Defense Initiative to apply artificial intelligence to enhance threat detection, malware analysis, vulnerability management, and incident response. The initiative aims to provide security professionals with advanced tools to combat cyber threats.

These investments reflect Google's ongoing commitment to advancing cybersecurity and protecting its users and clients in an increasingly digital world.

How Wiz acquisition could help Google compete against Microsoft and Amazon

The acquisition of Wiz strengthens Google’s ability to compete with Microsoft and Amazon in the cloud security market in several ways:

1. Enhancing Google Cloud’s security edge

• Microsoft and Amazon have heavily invested in security tools, with Microsoft’s Defender and Sentinel and AWS’s security services leading the market.
• Wiz’s AI-driven cloud security capabilities give Google Cloud a competitive advantage. They offer real-time risk detection and vulnerability management across multi-cloud environments.
• This positions Google Cloud as a stronger alternative for enterprises prioritizing advanced security in their cloud strategy.

2. Strengthening multi-cloud security leadership

• Unlike AWS and Microsoft Azure, which focus on their ecosystems, Google Cloud is actively expanding its multi-cloud support.
• Wiz’s ability to monitor security across AWS, Azure, and Google Cloud gives businesses more flexibility, making Google a more attractive cloud provider.
• This allows Google to differentiate itself by providing a unified security layer across all major cloud platforms.

3. Competing in AI-driven cybersecurity

• AI is transforming cybersecurity, with Microsoft integrating AI into its security products and Amazon leveraging AI for threat detection in AWS.
• Wiz's AI-powered security platform enhances Google Cloud’s ability to secure AI workloads and protect against AI-generated cyber threats.
• This ensures Google stays competitive as AI adoption accelerates and security concerns rise.

4. Closing the enterprise security gap

• Microsoft dominates the enterprise security space by deeply integrating security tools in Microsoft 365 and Azure.
• Wiz’s security platform, already adopted by major enterprises, allows Google Cloud to offer businesses a stronger security value proposition.
• This move helps Google attract more enterprise clients seeking a secure and scalable cloud solution.

5. Accelerating Google Cloud’s market share growth

• Google Cloud has traditionally trailed behind AWS and Azure in market share, partly due to security concerns among large enterprises.
• By acquiring Wiz, Google strengthens its security reputation, addressing a major factor in enterprise cloud adoption decisions.
• This could drive more customers to choose Google Cloud over its competitors, boosting its growth in the cloud computing space.

Will big tech’s cybersecurity battle heat Up with Google-Wiz deal?

Google’s $32 billion acquisition of Wiz strengthens its cloud security capabilities, enhancing AI-powered threat detection and multi-cloud protection. This move positions Google Cloud to compete more aggressively with AWS and Microsoft, attracting enterprises that prioritize cybersecurity. However, regulatory scrutiny may slow the deal’s final approval. If successful, Google Cloud could gain market share, leveraging Wiz’s expertise to offer advanced security solutions.

As AI-driven threats rise, this acquisition signals Google’s commitment to staying ahead in cybersecurity, setting the stage for innovation and increased competition in the cloud security industry.