CloudGenix-Palo Alto buy combines SD-WAN with cloud security

Matthew N. Henry

Security vendor Palo Alto Networks announced ideas to purchase CloudGenix for $420 million. Palo Alto mentioned it would integrate the CloudGenix software-outlined WAN into its Prisma cloud security suite immediately after the deal closes.

Palo Alto announced the arrangement this week. The firm ideas to total the transaction for the privately held CloudGenix by July. CloudGenix has far more than 800 SD-WAN clients, according to Gartner.

CloudGenix, primarily based in San Jose, Calif., gives an SD-WAN in software or hardware that a firm deploys in its branch places of work. The merchandise incorporates essential firewall functions and “potent” analytics, Gartner mentioned in its November Magic Quadrant report. Administration is cloud primarily based.

Palo Alto ideas to integrate the CloudGenix SD-WAN into Prisma Obtain, 1 of 4 main platforms in Prisma. Firms use Obtain to safe the branch connection to programs running on AWS, Google Cloud or Microsoft Azure. The software runs on any 1 of the a few cloud platforms.

In the future, Palo Alto could incorporate CloudGenix software with Palo Alto items in a one hardware appliance for branch places of work.

“I would also expect the management alternatives to incorporate as well,” mentioned Bob Laliberte, an analyst at Business Approach Team.

CloudGenix could change Palo Alto SD-WAN

The acquisition announcement comes 4 months immediately after Palo Alto launched its SD-WAN, which hadn’t received substantially traction in the market.

 “The SD-WAN feature set was not potent,” mentioned Steve Garson, the CEO of consultancy SD-WAN Industry experts. 

CloudGenix offers lower latency by its use of Google’s community spine for WAN connectivity. The Google spine interconnects the cloud provider’s world-wide facts centers and other facilities.

Palo Alto, on the other hand, elevates the baseline security functions in CloudGenix by the Prisma suite. Aside from the Obtain functions, Prisma also offers compliance monitoring, danger discovery and facts loss prevention for cloud programs.

Combining Palo Alto and CloudGenix items will deliver an SD-WAN with organization-course security from a one vendor. Currently, Palo Alto supports the CloudGenix SD-WAN, but the suppliers provide and support the items individually.

“Enterprises like having a one provider if it is probable,” Garson mentioned. “[Also], you are not able to look at SD-WAN with out on the lookout at security as section of the puzzle.”

The destiny of CloudGenix’s Zscaler partnership

Presently, CloudGenix also companions with Zscaler to provide clients with security when connecting to cloud programs. The joint CloudGenix-Zscaler clients are very likely to come to be a primary concentrate on for Palo Alto.

“I have to guess you will find likely to be some incentive to migrate to Palo Alto Prisma,” Garson mentioned.

CloudGenix clients will also profit from Palo Alto’s extensive record of systems integrators, which include things like some intercontinental organizations, Garson mentioned.

The acquisition is the hottest case in point of a technology pattern in which suppliers are supplying cloud programs like Prisma to safe facts scattered across multiple cloud services suppliers. Gartner named the direction Protected Obtain Support Edge (SASE) in a report revealed previous summer season.

The deal also reflects continued consolidation in the SD-WAN market. This pattern has been likely on for a number of years. IDC has documented that the market is just not huge more than enough to support its far more than a few dozen suppliers.

In the meantime, IDC predicts the SD-WAN infrastructure market will mature an normal of almost 31% by 2023 when it reaches $five.25 billion.

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