Google’s record-breaking $32 billion acquisition of cybersecurity startup Wiz is making waves in the tech world. However, the company has been careful to position Wiz as a “multicloud” offering, rather than an exclusive part of Google Cloud. This move isn’t just strategic—it’s a necessity.
Customer Retention: Keeping Wiz’s Multi-Cloud Appeal
Wiz has rapidly grown into a cybersecurity powerhouse, reaching an annual revenue rate of $700 million, with projections to hit $1 billion soon. The startup’s appeal lies in its cloud-agnostic approach, serving businesses across AWS, Azure, and Google Cloud.
If Google were to force customers to exclusively use Google Cloud, it could backfire. Many companies choose Wiz precisely because it works across multiple cloud platforms. This is why Wiz CEO Assaf Rappaport personally reassured customers that Wiz’s multicloud support would continue.
Regulatory Scrutiny and Antitrust Considerations
Google has faced intense antitrust scrutiny for years, especially in areas like search, mobile OS, and advertising. Given the scale of this acquisition, regulatory concerns were inevitable.
The FTC’s latest stance on Big Tech mergers remains a wildcard. While some believe Trump’s administration might take a softer approach to Big Tech M&A, others think scrutiny will persist.
Google’s emphasis on Wiz as a multicloud solution could also help its case. Since Google Cloud lags behind AWS and Azure, the deal doesn’t pose an immediate monopoly risk in cloud computing. By promoting competition across cloud platforms, Google may have found a way to avoid regulatory pushback.
Google Cloud’s Struggle to Catch Up
Despite Google’s vast resources, Google Cloud remains far behind AWS (30% market share) and Azure (21%), holding only 12% as of Q4 2024.
According to Statista’s latest cloud market report, Google has struggled to gain ground due to:
- AWS’s first-mover advantage
- Microsoft’s enterprise dominance and its partnership with OpenAI
- Google Cloud’s past struggles with enterprise adoption
Google Cloud CEO Thomas Kurian highlighted multicloud compatibility as a key reason for acquiring Wiz. He stated during an investor call:
“Multicloud is what customers want. Our commitment means businesses can integrate Google Cloud without losing their existing IT investments.”
However, Kurian believes AI could be a game-changer. As enterprises centralize data for AI-driven solutions, security demands will evolve. For now, Google is positioning Wiz as a cross-platform cybersecurity leader, capable of protecting enterprises across AWS, Azure, and Google Cloud.
What’s Next?
Google’s ability to navigate regulatory hurdles and retain Wiz’s customers will determine if this $32 billion investment pays off. While the multicloud strategy makes sense today, the future might favor more centralized AI-driven cloud security models.
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