Check Point and Wiz shake things up

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This newsletter is inspired by a deep analysis of Nikesh Arora, CEO of Palo Alto Networks, and his strategic approach to cybersecurity. It embodies his leadership style, forward-thinking mindset, and innovative insights. While not an exact representation, this analysis reflects key elements of Arora's vision for the future of cybersecurity, offering insights to guide proactive strategies and innovation.

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Introduction

As the CEO of Palo Alto Networks, I have spent years navigating the evolving cybersecurity landscape. When news broke about the strategic partnership between Check Point Software Technologies and Wiz, it immediately sparked my interest. This collaboration aims to unify cloud network security with Cloud Native Application Protection (CNAPP), addressing gaps in hybrid cloud environments. While this move is strategically sound, it raises important questions about its impact on the industry, competition, and future trends.

Wiz

Wiz Security, founded in 2020 by former Microsoft and Google Cloud engineers, has quickly established itself as a disruptive force in the cybersecurity space, particularly in Cloud Native Application Protection Platforms (CNAPP). The company’s founders, Assaf Rappaport, Yaniv Balmas, and Liran Tzukrel, leveraged their deep expertise in cloud infrastructure and security to address the growing security challenges in modern cloud environments.

Wiz’s journey began when its founders recognized a significant gap in the market: cloud security solutions were either too complex or lacked visibility into cloud environments, making it difficult for organizations to manage their security posture effectively. The founders aimed to provide a comprehensive, agentless security solution that would seamlessly integrate into cloud environments while offering deep risk detection and remediation.

The company introduced its flagship product, Wiz Cloud Security, a platform designed to provide holistic visibility and security across hybrid and multi-cloud environments. Unlike traditional security tools, Wiz does not rely on agents or network appliances, making it lightweight and easy to deploy. Instead, Wiz integrates directly with cloud platforms such as AWS, Microsoft Azure, and Google Cloud to gather detailed insights into security risks across workloads, containers, and other cloud-native technologies.

Wiz’s approach was innovative in that it focused not just on vulnerability detection but on providing actionable insights into risk, compliance, and misconfigurations across the cloud stack. The platform’s ability to identify risks at the infrastructure level, application layer, and container level helped differentiate Wiz from its competitors. This proactive approach allowed organizations to address security issues before they could be exploited by threat actors, offering a shift from traditional, reactive security models.

Wiz gained significant attention in 2021 after raising a $30 million Series A round of funding, followed by a $130 million Series B round in 2022, with investors recognizing its potential to revolutionize cloud security. The company’s rapid growth and adoption were fueled by the increasing shift to cloud-first strategies among enterprises, and the growing need for effective security in increasingly complex hybrid and multi-cloud environments.

With a focus on continuous innovation and a strong vision for the future of cloud security, Wiz remains one of the fastest-growing cybersecurity companies in the industry.

The Strategic Move by Check Point and Wiz

Check Point has long been a leader in network security, but its cloud strategy has struggled to match the agility and innovation of cloud-native competitors. Wiz, on the other hand, has emerged as a disruptor in the CNAPP space with a strong emphasis on risk visibility and remediation. By combining forces, these companies hope to create a more holistic security framework that seamlessly integrates network security controls with cloud risk insights.

From a business perspective, this partnership signals Check Point’s shift toward a cloud-first approach, leveraging Wiz’s capabilities to modernize its offerings. In turn, Wiz benefits from Check Point’s established customer base and reputation, giving it deeper penetration into the enterprise market.

Historical Context: Cybersecurity Consolidation and Partnerships

To understand the potential impact of this partnership, it's useful to examine past industry trends. Historically, cybersecurity has evolved through waves of technological innovation and consolidation:

• Early 2000s – Rise of Network Security: Companies like Check Point, Cisco, and Fortinet dominated with firewall-based network security solutions. Enterprises focused on perimeter-based defense mechanisms.

• 2010-2015 – Cloud Transition and Endpoint Protection: The shift to cloud computing saw the emergence of advanced endpoint security companies like CrowdStrike and Carbon Black. Palo Alto Networks and FireEye expanded into cloud-based security solutions.

• 2016-2020 – Growth of Cloud Security and CNAPP: As organizations moved toward hybrid cloud environments, cloud security became a priority. Companies like Wiz, Lacework, and Orca Security introduced CNAPP solutions to address growing cloud threats.

• 2021-Present – AI-Driven Security and Partnerships: With increasing attack complexity, AI-driven security solutions gained traction. Larger enterprises began forming strategic partnerships or acquiring specialized firms to enhance their cybersecurity capabilities.

The CNAPP Landscape: Market Leaders and Emerging Players

Cloud Native Application Protection Platforms (CNAPP) have become a crucial component of modern cybersecurity strategies. The market is divided into established leaders and emerging challengers, each vying for dominance in an increasingly competitive landscape.

Market Leaders

• Palo Alto Networks (Prisma Cloud): With a comprehensive CNAPP offering, Prisma Cloud integrates workload protection, Kubernetes security, and AI-powered risk assessment.

• Microsoft (Defender for Cloud): A key player leveraging deep integration with Azure, Microsoft’s CNAPP solution provides robust threat intelligence and compliance management.

• CrowdStrike (Falcon Cloud Security): Originally an endpoint security leader, CrowdStrike has expanded into CNAPP with a strong focus on threat intelligence and runtime protection.

• Check Point (CloudGuard, now enhanced by Wiz): Before the Wiz partnership, Check Point’s CloudGuard offered cloud-native security, but it lacked deep risk visibility, which Wiz now provides.

Up-and-Coming CNAPP Companies

• Wiz: With rapid adoption across enterprises, Wiz has established itself as a leading risk detection and remediation platform, now strengthened by its partnership with Check Point.

• Orca Security: Known for its agentless approach, Orca provides deep cloud security insights with minimal operational overhead.

• Sysdig: A strong contender in Kubernetes security, Sysdig provides container and runtime protection for cloud-native applications.

Lacework: A Once-Promising Player Acquired by Fortinet

Lacework, once a promising leader in CNAPP, struggled to maintain its competitive edge and was ultimately acquired by Fortinet in 2024. Initially known for its AI-driven behavioral analysis, Lacework saw early success, but its growth plateaued as other competitors like Wiz and Orca outpaced its adoption rate. Fortinet’s acquisition signals an effort to integrate CNAPP capabilities into a broader security portfolio rather than allowing Lacework to operate independently.

How CNAPP Leaders Will Counter the Check Point-Wiz Partnership

Palo Alto Networks (Prisma Cloud): Doubling Down on AI and Integration

• Accelerated AI Integration: Enhancing AI-driven threat detection, risk analytics, and predictive security capabilities.

• Mergers & Acquisitions: Acquiring complementary cloud security startups to reinforce its existing CNAPP offerings.

• Stronger Partner Ecosystem: Expanding collaborations with cloud hyperscalers (AWS, Azure, Google Cloud).

• Enhanced CNAPP Automation: Improving automated remediation and compliance.

Microsoft (Defender for Cloud): Leveraging Azure’s Cloud Dominance

• Expanding Cross-Cloud Support: Strengthening security for AWS and Google Cloud environments.

• Native AI Integration: Embedding Copilot and AI-powered automation within Defender for Cloud.

• Bundled Security Packages: Offering CNAPP solutions with other Microsoft security tools.

• Acquisition Strategy: Potentially acquiring key cloud security firms.

CrowdStrike (Falcon Cloud Security): Enhancing Threat Intelligence and Runtime Protection

• Strengthening Runtime Protection: Investing in deeper cloud workload security.

• Bolstering Threat Intelligence: Expanding integration with real-time threat intelligence.

• Cloud Security Expansion: Acquiring a niche CNAPP provider like Orca Security or Sysdig.

• Competitive Pricing Models: Offering aggressive pricing to counter Check Point-Wiz.

Other Industry Reactions

• Google Cloud: Enhancing Security Command Center and forming alliances.

• AWS Security Hub: Refining CNAPP strategy and integrating advanced features.

• Zscaler & Fortinet: Exploring CNAPP partnerships or acquisitions.

The Evolution of Check Point’s Market Position

Check Point has been a dominant player in network security for decades. However, its historical reluctance to innovate at the pace of cloud-native competitors has made it vulnerable. By the mid-2010s, companies like Palo Alto Networks and Zscaler were already pushing toward Zero Trust and cloud-native approaches. Check Point’s primary strength remained in traditional perimeter security, which has become less relevant as enterprises embrace hybrid and multi-cloud environments.

The partnership with Wiz is Check Point’s most significant strategic move in years. Wiz, a fast-growing startup, provides the agility and cloud-native expertise Check Point needs to regain a competitive edge. However, history has shown that integrating a disruptive startup into a legacy security company is not always smooth. Execution will be crucial for this partnership to deliver long-term value.

Impact on Palo Alto Networks and the Industry

This development undoubtedly shifts competitive dynamics in cybersecurity. Palo Alto Networks has been at the forefront of integrating AI-driven cloud security with robust network defenses, and our Prisma Cloud platform already offers a comprehensive CNAPP solution. However, the Check Point-Wiz alliance presents a new challenge by combining deep-rooted network security expertise with a rapidly growing CNAPP leader.

Potential industry impacts include:

• Increased competition in CNAPP: Palo Alto Networks, CrowdStrike, and Microsoft have been dominant in this space. The Check Point-Wiz partnership will intensify the battle for market share, particularly among enterprises transitioning to hybrid cloud environments.

• Strategic partnerships will become the norm: The alliance reflects a growing trend of consolidation and strategic partnerships in cybersecurity. Expect other major players to explore similar collaborations to fill gaps in their portfolios.

• Customer acquisition challenges: For Check Point and Wiz, the biggest hurdle will be seamless product integration and proving the effectiveness of their joint solution. Enterprises demand proven security frameworks, and execution will determine whether this partnership thrives or struggles.

Forecast and Industry Trends

Looking ahead, several key trends will shape the cybersecurity industry:

• AI and Machine Learning in Security: Automation and AI-powered threat detection are becoming central to cybersecurity. Companies that fail to integrate AI effectively risk falling behind.

• Zero Trust Architectures: The shift toward Zero Trust will continue to impact security vendors, making traditional perimeter-based models obsolete.

• Cloud Security Market Expansion: Gartner predicts that global spending on cloud security will exceed $10 billion by 2025. The demand for CNAPP solutions will grow exponentially.

• M&A Acceleration: As seen in past industry cycles, cybersecurity consolidation will intensify. Expect more acquisitions in CNAPP, cloud security, and AI-driven threat prevention.

Conclusion

The cybersecurity industry is undergoing rapid transformation, and Check Point and Wiz’s partnership is a response to evolving enterprise needs. The next year will be pivotal in determining whether this partnership reshapes the market or struggles under execution complexities. Either way, the industry will benefit from heightened competition and innovation.

With an increasing reliance on cloud security, only those companies that can adapt quickly and integrate AI-driven, automated solutions will thrive.

Stay Safe, Stay Secure.

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