Google’s $32 billion acquisition of Wiz represents a fundamental shift in the cloud security landscape. The deal, announced Tuesday, is Google’s most aggressive move yet to bolster its cloud security capabilities and compete with Amazon Web Services and Microsoft Azure, and experts believed it will reshape the cloud security landscape.
SC Media spoke with several industry, cloud and security experts to help unpack the Google-Wiz deal.
Beyond the immediate business implications, experts believed the acquisition reflects a broader industry reckoning; the supremacy of cloud in business, the growing importance artificial intelligence in cybersecurity and the ability for enterprises to reduce tool sprawl with a unified solution.
"For too long, cybersecurity has been dominated by flashy dashboards and compliance checklists that look good on paper but fail under real-world threats," said Bob Ackerman, founder and managing director of AllegisCyber Capital. "Google’s acquisition of Wiz signals that enterprises are demanding security that actually prevents breaches, not just certifying that they followed the rules."
This is what many industry leaders call “security theater.” Some point to the 2017 Equifax breach as an example. While Equifax had various cybersecurity tools in place, they failed to mitigate a gaping security hole (Apache Struts flaws) exposing 147 million data records.
Enterprises are demanding tools that genuinely mitigate threats, not just check compliance boxes, Ackerman said.
From compliance to real cybersecurity protection
Google’s decision to pay a $32 billion premium for Wiz underscored the changing priorities of chief information security officers (CISOs), who are scrutinizing cybersecurity vendors as the economic and regulatory picture comes into focus for 2025 and beyond.
Rob Gurzeev, CEO of CyCognito, pointed out that security executives are increasingly rejecting expensive tools that look good in audits but fail to prevent breaches. Google's investment in Wiz reflected a growing demand for solutions that deliver tangible value and risk reduction.
“Security executives are more critical than ever, and they demand substance, not security theater,” Gurzeev said.
Another reason Wiz stood out in the crowded security market is its focus on developers.
Ravi Srinivasan, CEO of Votiro, noted that Wiz fills this gap by embedding security into the development process, rather than treating it as an afterthought. That developer-first approach aligns well with Google’s broader strategy of integrating security into cloud-native application development.
Most cloud security tools cater primarily to IT security teams, leaving developers — who build and deploy cloud applications — without the tools they need to secure their code from the outset.
AI and the next cybersecurity arms race
Beyond cloud security, the acquisition also positioned Google to address the growing cybersecurity challenges posed by AI.
Attackers are increasingly using AI to automate and scale their attacks, creating new risks that traditional security tools struggle to address. Gurzeev believed that Wiz’s platform is well-suited for an era where AI is both a threat and a tool for defense.
“Companies are accelerating into AI-based applications, but attackers aren’t waiting around,” he noted. “They’re weaponizing AI to launch sophisticated campaigns at scale. If your security solution can’t keep up, no brand name can hide that gap.”
This reality has forced enterprises to rethink their security strategies. Wiz’s ability to rapidly scan and analyze cloud environments for vulnerabilities — combined with Google’s own AI-driven security initiatives — could provide a formidable defense against increasingly automated cyber threats.
Google-Wiz deal a bellwether for market consolidation
The Wiz acquisition also reflected broader market shifts, where cybersecurity startups are increasingly opting for acquisitions over IPOs. With over 6,000 cybersecurity vendors competing for enterprise budgets, many companies are consolidating their security spending around trusted, established platforms.
Dave Gerry, CEO of Bugcrowd, saw the deal as a sign of things to come. “While many hoped that 2025 would be the Year of the IPO, this deal may be a bellwether signaling other large-scale M&A activity,” he said.
Unlike other sectors facing economic uncertainty, cybersecurity remains a high-priority investment as enterprises grapple with escalating cyber threats and regulatory pressures.
Ackerman noted that security spending is becoming as essential as cloud computing itself. “The cost consequences of cyber threats are increasing, making security one of the few areas that remains insulated from market downturns,” he explained.
With security now seen as critical infrastructure, Google’s $32 billion gamble signaled that the race for multi-cloud and AI-driven protection is only accelerating.
Regulatory scrutiny of Google-Wiz deal and competitive pressure
Despite the clear strategic rationale behind the acquisition, Google will likely face regulatory hurdles.
The company is already under scrutiny in multiple antitrust cases, and adding a dominant cloud security platform to its portfolio could raise further concerns. However, Ackerman believed that regulators may hesitate to block a deal that ultimately improves cybersecurity for enterprises.
“The global urgency for strong security could override antitrust concerns,” he said. “Security isn’t optional and blocking an acquisition that could protect more organizations might be a tough argument.”
Meanwhile, competitors are unlikely to sit still. Both Amazon and Microsoft have been aggressively expanding their security capabilities through acquisitions and in-house development.
In 2021, Microsoft acquired RiskIQ, a threat intelligence and attack surface management firm. In 2023, it introduced Security Copilot, an AI-powered security tool. AWS has integrated GuardDuty, Macie, and Security Hub into its cloud defenses to expand its native security offerings. In 2022, AWS acquired Threat Stack, a cloud security monitoring firm, to improve real-time threat detection for its cloud customers.
Google’s purchase of Wiz could trigger a new wave of cybersecurity acquisitions as cloud providers race to strengthen their defenses.
The future of cloud security: hybrid and AI
Ultimately, Google’s acquisition of Wiz is a clear acknowledgment that the cybersecurity market has reached a turning point. As Ackerman put it, the $32 billion price tag may seem excessive compared with its 2022 acquisition of Mandiant for $5.4 billion, but it reflected an urgent demand for security solutions that work in today’s hybrid, AI-driven landscape, Ackerman said.
For Google, the challenge now is ensuring that Wiz retains its platform-agnostic appeal, experts agreed. If it integrates Wiz too tightly into its own cloud ecosystem, it risks alienating enterprise customers that depend on multi-cloud environments. If it successfully maintains Wiz’s neutrality, however, it could position itself as the dominant force in cloud security for years to come.
