Palo Alto Networks Acquires IBM's QRadar SIEM Assets in Major Cybersecurity Deal

Palo Alto closes deal to bite on IBM QRadar security

Palo Alto Networks has completed its purchase of IBM's QRadar SaaS service, spending $500 million to buy up customer share for PAN's next-gen AI security Cortex platform. Neither company is commenting but this looks like a straight customer grab, with IBM promising a "seamless and cost-free migration" to PAN's Cortex system. Over 1,000 Big Blue consultants have been trained on the system and costs shouldn't rise for eligible customers, it said. "Working with Palo Alto Networks will be a strategic advantage for IBM as our two companies partner on advanced threat protection, response, and security operations using Cortex XSIAM and watsonx, backed by IBM Consulting," CEO Arvind Krishna said in a canned statement. "At the same time, IBM will continue innovating to help secure organizations' hybrid cloud environments and AI initiatives, focusing our investments on data security and identity and access management technologies." According to PAN's buzzword bingo-heavy release, the Cortex platform will cover security information and event management (SIEM), security orchestration, automation and response (SOAR) - which was tech bought from security maven Bruce Schneier in 2016, attack surface management (ASM) and the important extended detection and response (XDR), the current phrase for applying AI to fix issues faster than admins. "We are on a mission to help organizations transform their security operations and harness the potential of Precision AI-powered platforms to better protect their businesses," said PAN CEO Nikesh Arora. "Our partnership with IBM reinforces our commitment to innovation and our conviction in the tremendous benefit of QRadar customers adopting Cortex XSIAM for a robust, data-driven security platform that offers transformative efficiency and effectiveness in defending against evolving cyber threats." The practical result of this is that IBM is shifting to PAN, and not just the payers. Around a quarter of a million IBM staff will be using PAN's Prisma SASE 3.0 security software - there's going to be some heavy training ahead. Big Blue takes a payoff to preserve shareholder value, and it's all about PAN's Cortex XSIAM AI platform from now on. The security giant is betting on XSIAM to grab a significant share of the security management market, and buying IBM's business is a logical move. ®

Palo Alto Networks Completes IBM QRadar Deal; CEO Touts Cortex Adoption Ahead

'Our partnership with IBM reinforces our commitment to innovation and our conviction in the tremendous benefit of QRadar customers adopting Cortex XSIAM for a robust, data-driven security platform that offers transformative efficiency and effectiveness in defending against evolving cyberthreats,' says Palo Alto Networks CEO Nikesh Arora. Cybersecurity superstar Palo Alto Networks completed its $500 million acquisition of IBM's QRadar assets Wednesday with CEO Nikesh Arora touting that the merger will significantly boost the adoption of its Cortex ISIAM offering. "Our partnership with IBM reinforces our commitment to innovation and our conviction in the tremendous benefit of QRadar customers adopting Cortex XSIAM for a robust, data-driven security platform that offers transformative efficiency and effectiveness in defending against evolving cyberthreats," said Palo Alto Networks' CEO in a statement. With the acquisition of IBM's QRadar Software-as-a-Service (SaaS) assets, Palo Alto Networks is now focused on enabling customer migrations to its Precision AI-powered Cortex XSIAM platform, while also speeding up its ability to become a larger player in the SIEM (security information and event management) market. Palo Alto Networks and IBM will help global customers across industries seamlessly shift from QRadar to Cortex XSIAM with no-cost migration services through IBM Consulting for eligible customers. [Related: IBM QRadar Acquisition By Palo Alto Networks Marks 'Sea Change' In SIEM Market: Analyst] The cybersecurity company's Cortex XSIAM platform centralizes data and security operations capabilities into a single platform to streamline operations and prevent threats. "We are on a mission to help organizations transform their security operations and harness the potential of Precision AI-powered platforms to better protect their businesses," said Arora. QRadar customers that remain on QRadar on-premises will continue to receive IBM features and support, including security, usability and critical bug fixes, as well as updates to existing connectors and the ability to expand consumption. IBM and Palo Alto Networks have been working together for months to make sure IBM partners can quickly become official Palo Alto Networks partners. This will enable IBM partners to sell the Cortex XSIAM platform. "Once the acquisition closes, our partners will have the opportunity to join Palo Alto Networks' partner program, if they're not already part of that, so they will be able to then sell Cortex XSIAM," Kate Woolley, IBM's global channel chief, told CRN in May. "Then as we look at our QRadar on-prem clients and partners, we are going to be working with them to continue to support and enhance those products from an IBM perspective," Woolley added. "But also work in partnership with Palo Alto to look at where does it make sense to modernize those clients onto the Cortex XSIAM offering or where does it make sense for them to stay where they are?" Arvind Krishna, chairman and CEO of IBM, said his company is "shaping the future of cybersecurity for our customers and the industry at large" via its partnership with Palo Alto Networks. "Working with Palo Alto Networks will be a strategic advantage for IBM as our two companies partner on advanced threat protection, response and security operations using Cortex XSIAM and watsonx, backed by IBM Consulting," Krishna said. IBM has furthered its internal deployment of Palo Alto Networks security platforms with the deployment of Cortex XSIAM for its own next-generation security operations, and Prisma SASE 3.0 for zero-trust network security to safeguard more than 250,000 of its global workforce. Krishna said IBM will continue innovating to help secure organizations' hybrid cloud environments and AI initiatives, "focusing our investments on data security and identity and access management technologies."

Palo Alto Networks acquires IBM's QRadar SaaS assets By Investing.com

SANTA CLARA, Calif. - Palo Alto Networks (NASDAQ: NASDAQ:PANW) has finalized the acquisition of IBM (NYSE:IBM)'s QRadar Software as a Service (SaaS) assets, strengthening their partnership and enhancing their cybersecurity offerings. This move is part of Palo Alto Networks' strategy to provide comprehensive security solutions and streamline operations for customers globally. The acquisition enables a seamless transition for QRadar customers to Palo Alto Networks' Cortex XSIAM platform, which is powered by Precision AI™. This platform consolidates various security operations tools, including SIEM, SOAR, ASM, and XDR, into a unified system designed to simplify security operations and effectively prevent threats. Eligible customers will receive no-cost migration services through IBM Consulting to ensure a smooth changeover while maintaining their current security practices. IBM has committed to the partnership by deploying Palo Alto Networks' Cortex XSIAM for its own security operations and Prisma SASE 3.0 for network security, covering its workforce of over 250,000 employees. In return, Palo Alto Networks will integrate IBM's watsonx AI and data platform to further enhance AI and automation capabilities within its security solutions. Nikesh Arora, Chairman and CEO of Palo Alto Networks, emphasized the company's mission to transform security operations and the benefits of adopting Cortex XSIAM for QRadar customers. Arvind Krishna, Chairman and CEO of IBM, highlighted the strategic advantage of this collaboration in advancing threat protection and security operations. According to Dave Gruber, Principal Cybersecurity Analyst at Enterprise Strategy Group, the acquisition provides QRadar customers with a simplified path to modernizing their security operations. For customers who prefer to maintain their current QRadar on-prem solutions, IBM will continue to provide support, including security enhancements and updates. QRadar SaaS customers will also continue to receive uninterrupted service until they transition to Cortex XSIAM. This press release is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. The actual results could differ materially from those anticipated in these statements. In other recent news, Palo Alto Networks has been the subject of various analyst notes following its robust fourth-quarter earnings performance. BTIG reaffirmed its Buy rating, maintaining a price target of $395.00, citing confidence in the company's ability to continue gaining traction in multiple product categories. Scotiabank, FBN Securities, KeyBanc, and TD Cowen all raised their price targets for the company, maintaining positive ratings. However, BofA Securities, while increasing the price target to $400, maintained a Neutral rating, pointing out several concerns that may limit the stock's future upside. These recent developments follow Palo Alto Networks' strong fourth-quarter results, showcasing a 42.8% year-over-year growth in Next-Generation Security (NGS) Annual Recurring Revenue (ARR), along with strong margins and free cash flow generation. The company's decision to shift its guidance towards Remaining Performance Obligations (RPO), a metric believed to better reflect business momentum, has been acknowledged by analysts. Palo Alto Networks' management has also expressed confidence in their strategic moves to accelerate consolidation and maintain top-tier free cash flow profitability into fiscal years 2025 and 2026. The company's platform-centric approach and the acceleration in demand for platformization have been highlighted as significant contributors to its strong performance. Palo Alto Networks' adoption of Secure Access Service Edge (SASE) and its advancements in Artificial Intelligence (AI) solutions have been cited as key factors bolstering its financial performance and competitive position in the cybersecurity market. As Palo Alto Networks (NASDAQ: PANW) expands its cybersecurity capabilities with the acquisition of IBM's QRadar SaaS assets, the company's financial metrics and market position provide additional context for investors. With a market capitalization of $114.97 billion, Palo Alto Networks is a significant player in the cybersecurity space, emphasizing its commitment to growth and innovation. InvestingPro Data indicates that Palo Alto Networks has a P/E ratio of 44.04, which reflects investor confidence in the company's earnings potential, despite trading at a high earnings multiple. The company's revenue growth over the last twelve months, as of Q4 2024, stands at a solid 16.46%, demonstrating its ability to expand its financial footprint in the competitive software industry. According to InvestingPro Tips, Palo Alto Networks is recognized as a prominent player in the Software industry, with analysts revising their earnings upwards for the upcoming period, a testament to the company's strong market presence and potential for future profitability. Additionally, Palo Alto Networks has shown a robust return over the last three months, with a 22.4% price total return, highlighting the positive investor sentiment surrounding the company's performance and strategic acquisitions. For investors seeking deeper insights, InvestingPro offers additional tips on Palo Alto Networks, which can be accessed at https://www.investing.com/pro/PANW. These tips provide a comprehensive analysis of the company's financial health, market valuation, and growth prospects, valuable for making informed investment decisions.