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Palo Alto Networks Intends To Purchase IBM’s Cloud Security Software

Palo Alto Networks is purchasing IBM’s cloud security software assets as part of a larger partnership that will allow the cybersecurity company to access more consultants and a larger customer base. 

TakeAway Points:

  • Palo Alto Networks is acquiring the cloud software assets of IBM and transferring its clientele to its own platform.
  • Even though the two businesses have been collaborating more lately, there is still product overlap.
  • More than 1,000 consultants would receive internal training from IBM on Palo Alto products.

Palo Alto Networks to Acquire IBM’s cloud security software assets

The companies announced in a joint press release on Tuesday that Palo Alto is purchasing IBM’s QRadar cloud software for an undisclosed amount and that IBM will be training over 1,000 of its consulting employees on Palo Alto’s products.

The security software sector has been consolidating more and more as businesses prepare for a wave of threats brought on by artificial intelligence. In the largest deal ever made by the networking business, Cisco acquired Splunk for $28 billion in March, taking over the market leader in security information and event management (SIEM) software.

Exabeam and Thoma Bravo’s LogRhythm, two other SIEM providers, had announced plans to unite earlier on Wednesday.

Palo Alto’s CEO, Nikesh Arora, stated to CNBC that his company needs to be more ready to take on Splunk.

“Clearly, it’s just a hotbed of activity in the consolidation in cybersecurity,” Arora said.

Both Palo Alto and IBM offered SIEM software, but they had been collaborating more closely for months; Arora stated he has been in discussions with IBM CEO Arvind Krishna about how to take their relationship further.

“We used to get stuck there,” Arora said.

Cortex Xsiam Software

Although Palo Alto has been in the SIEM space for more than 20 years, Cortex Xsiam was only introduced two years ago. According to Arora, the company has been stealing market share from “everyone,” as seen by the over $90 million in bookings made in the most recent quarter. 

Palo Alto’s competitive Cortex Xsiam software was made available to customers by IBM’s consulting group in December. Now, Palo Alto’s Prisma Sase 3.0 product bundle and Cortex Xsiam will be adopted by IBM as well.

Palo Alto Growth in Revenue 

The report shows that Palo Alto is growing much faster than IBM. In the January quarter, revenue jumped 19%. The company will report results for the most recent quarter on Monday. IBM stated that it wanted to grow revenue in the mid-single digits by 2024. In the first quarter, revenue increased 3%, with a 2% bump in the consulting segment.

Palo Alto’s market cap has surpassed $100 billion as a result of its shares rising 6% in 2024 and the company’s value more than doubling in the previous year. Over 1% of the stock increased during extended trading. With an almost 5% gain this year, IBM is currently valued at $154 billion.

According to the companies, the deal should close by the end of September, pending regulatory clearance and other requirements.


Palo Alto Networks, Inc. is an international cybersecurity business of American origin. Its platform, which comprises powerful firewalls and cloud-based services that expand those firewalls to include additional security aspects, is its main product. Serving more than 70,000 organisations in more than 150 countries, the company has worked with 85 Fortune 100 companies. It is one of the World Economic Forum’s partners.

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