cybersecurity
Palo Alto Networks and IBM Expand Collaboration for Platform Integration
Palo Alto Networks (PANW) and IBM (NYSE:IBM) have formed a broad alliance to provide customers with AI-enhanced security solutions , they announced late Wednesday.
IBM made public the sale of its QRadar software-as-a-service assets to PANW for an undisclosed amount. At the same time, IBM will become a PANW-favored service provider and adopt PANW's security technology for its own internal use.
Market experts noted that IBM's security software sales have not kept pace with its overall software offerings, showing a 1% decline in the year 2023 and a further 3% drop in the first quarter of 2024.
"The recent statement could indicate that IBM sees itself as more competitive by focusing on providing services in specific areas of security," they commented.
"Traditionally, IBM promoted end-to-end solutions under its own brand, but in recent years it has noticeably increased its collaboration with other technology firms as it moves away from that approach," the analysts added.
"IBM's recent reclassification of its security services revenue from the software category to the consulting category could be an indication of its intention to enhance its position as a standalone provider of consulting services in the security space," they suggested.
Meanwhile, Morgan Stanley has stated that collaboration is beneficial for the development of integrated platforms.
"Our view of PANW has become more favorable following the expansion of its partnership with IBM. This partnership benefits PANW in several ways:
- Accelerates the growth of its market share in the Security Analytics/Security Information and Event Management sector, where PANW is now among the top three contenders,
- represents a significant victory in terms of customer base growth,
- expands its reach through the integration of IBM services"
