Alphabet’s cloud unit, Google Cloud, and cybersecurity company Palo Alto Networks announced an expanded partnership on Friday. Sources told Reuters this is by far Google Cloud’s largest security services deal to date.
The contract reportedly involves a commitment by Palo Alto Networks to pay nearly $10 billion to Google Cloud over several years. The exact figures have not been confirmed by either company. Part of the spending will support the migration of Palo Alto’s existing offerings to Google Cloud, while a significant portion will fund new AI-driven services.
Palo Alto president BJ Jenkins told Reuters, “AI has spawned a tremendous amount of demand for security.” Google Cloud’s chief revenue officer, Matt Renner, added that AI is reshaping business operations but cybersecurity remains in its early stages.
Jenkins noted that the rise of AI mirrors the early days of cloud computing, with new and unforeseen security threats emerging. Cyberattacks increasingly leverage the same generative AI tools that security providers are deploying to strengthen defenses.
Both Google Cloud and Palo Alto Networks have made substantial investments in security solutions to meet growing enterprise demand for AI-enabled protection. Google’s pending $32 billion acquisition of security firm Wiz and Palo Alto’s recent AI-driven service launches, as well as its $3.35 billion acquisition of Chronosphere, highlight the companies’ commitment to expanding AI capabilities.
Renner emphasized that this deal demonstrates Google Cloud’s strong positioning as AI reshapes the cloud computing market, intensifying competition with rivals like Amazon Web Services and Microsoft Azure.
The partnership between Google Cloud and Palo Alto Networks dates back to 2018. Notably, Palo Alto CEO Nikesh Arora previously served as Google’s chief business officer until 2014, highlighting the longstanding ties between the two companies.
This agreement underscores the growing importance of AI-powered security solutions and Google Cloud’s strategic role in delivering enterprise-grade cybersecurity services worldwide.
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