Oppenheimer says Google/Wiz transaction ‘positive’ for broader security coverage

Oppenheimer notes that according to various media outlets, Google (GOOGL) is nearing a deal to acquire cloud-security startup Wiz for $23B. The firm believes that with Wiz, Google becomes the leading vendor in the cloud security space and a top 10 vendor in security. While Oppenheimer doesn’t expect a change to Microsoft (MSFT) and AWS (AMZN) strategy in security, it thinks the two hyperscalers will be less likely to cooperate with Google/Wiz, opening the market up to other security vendors. Google moves from partner to direct competitor for Palo Alto (PANW), Crowdstrike (CRWD), and Fortinet (FTNT), which will need to rethink their partnership and pricing strategy, the firm argues. Oppenheimer also believes the deal can accelerate consolidation in the cloud security space, with several smaller vendors still competing for share and larger vendors looking to address gaps in their platforms. Overall, it views a Google/Wiz transaction as positive for its broader security coverage.