Google bluiding
It is Google's most valuable bet in the cloud business (AFP file photo).

The $32 billion Google just spent on a cloud security startup

It's one of the biggest recent moves in the tech world. Why is the cloud so important to entrepreneurs?

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Tech giant Google has announced the acquisition of Wiz, a cloud cybersecurity startup, for an impressive $32 billion. This purchase not only represents the largest acquisition in Google's history, but also highlights the growing importance of cloud security in an increasingly digitized world.

Google has made large acquisitions in the past, such as the purchase of Motorola Mobility in 2012 for $12.5 billion or Mandiant in 2022 for $5.4 billion. However, the purchase of Wiz surpasses any previous move by the company and makes it clear that cloud computing has become the central pillar of its business strategy.

Wiz is an Israeli startup founded in 2020 by former members of Israel's 8200 cyber intelligence unit, an elite group known for its cybersecurity expertise. In just four years, the company managed to position itself as a benchmark in cloud infrastructure protection, attracting large corporate clients and generating recurring revenues estimated at $700 million annually. It is estimated that by 2025, this figure will exceed US$1 billion.

A key business

With the accelerated growth of cloud computing, security has become a top priority for businesses and governments. Cyber attacks have increased exponentially, and the need for innovative security solutions is greater than ever.

Wiz offers a cloud security platform that detects vulnerabilities, protects data and helps companies comply with security regulations. Its ability to integrate with leading cloud computing services, such as Amazon Web Services (AWS), Microsoft Azure and Google Cloud, has made it a strategic player in the market.

The battle for the cloud

The cloud business is dominated by three major players: Amazon Web Services (AWS), Microsoft Azure and Google Cloud. Although Google has grown in this market, it is still behind AWS and Microsoft in terms of market share.

The purchase of Wiz is a clear strategy to differentiate itself in the industry and strengthen its cloud security offering. In fact, Microsoft also tried to acquire Wiz, but Google beat it to the punch with a more aggressive bid.

With this purchase, Google is looking to attract large enterprises that need a secure and robust infrastructure for their digital operations. The integration of Wiz into its ecosystem will enable Google Cloud to offer more advanced cybersecurity solutions, which could make it a more attractive option for customers seeking confidence and stability in their cloud services.

Keys for entrepreneurs

Beyond the competition between tech giants, this acquisition also underscores a key reality for entrepreneurs: cloud computing is the future of business.

Startups and emerging companies are increasingly relying on cloud services to reduce costs, scale quickly and access advanced technologies such as artificial intelligence and data analytics. Without the need for large physical infrastructures, today any entrepreneur can launch a global product or service from a laptop.

Cloud security is also a critical factor for emerging businesses. Data is the most valuable asset of many startups, and any vulnerability could compromise their growth or even their survival; having secure platforms such as the one offered by Wiz has become a fundamental necessity for companies of all sizes.

Google's purchase of Wiz not only marks a milestone in the technology industry, but also reflects the central role that cloud computing plays in the digital economy. For entrepreneurs, this acquisition is a clear signal that investing in cloud technology and security is not just an option, but a strategic necessity.

As the world moves towards greater digitization, the ability to operate securely in the cloud will be a determining factor in the success of any business. Google knows this, which is why it has invested $32 billion in ensuring that its infrastructure is one of the most secure in the world.

With information from AFP

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