Palo Alto Networks Is Buying IBM QRadar Cloud Security Software Assets to Expand Customer Base

By Trisha Andrada

May 16, 2024 07:07 AM EDT

Palo Alto Networks is expanding its customer base by buying cloud security software assets from IBM that will give the cybersecurity firm access to more consultants and other clients.

In recent months, Palo Alto and IBM have been collaborating but still have product overlap. Palo Alto CEO Nikesh Arora told CNBC that he had been discussing how to advance their partnership with IBM CEO Arvind Krishna.

Palo Alto Networks is growing its cybersecurity business by acquiring IBM's cloud security software assets and recruiting more professionals and clients. 
(Photo : Joern Pollex/Getty Images)

Palo Alto to Acquire IBM QRadar

The two companies announced their agreement in a joint statement released on Wednesday. Palo Alto said it will acquire IBM's cloud product QRadar for an undisclosed sum and move current clients to its security platform, Cortex Xsiam.

Nikesh Arora told CNBC that this process typically takes one to three months. More than a thousand of IBM's consulting staff will also get training on Palo Alto's products.

In a previous announcement, CNBC reported that IBM's consulting business would begin selling clients Palo Alto's Cortex Xsiam software. The Cortex Xsiam and Prisma Sase 3.0, both of Palo Alto, are now part of IBM's product suite.

In addition to using Google models, Palo Alto will integrate IBM's Watsonx large language models into Cortex Xsiam. The firms have said that the deal should be finalized by the end of September, assuming all necessary approvals and conditions are met.

Read Also: Palo Alto Networks Shares Fall After Cutting Its Revenue Forecast for the Year

Security Software Industry Merging in Preparation for AI-Based Attacks

The security software market has seen an increasing consolidation as companies prepare for threats spawned by artificial intelligence (AI). Networking giant Cisco recently completed its biggest purchase to date, acquiring Splunk for $28 billion.

Splunk is the market leader in security information and event management (SIEM) software. Two more SIEM industry players, Exabeam and Thoma Bravo's LogRhythm, revealed merger goals this week.

Read More: Cisco Introduces New AI Security System Following $28 Billion Acquisition of Splunk

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics