What happened: California-based cybersecurity company Palo Alto Networks is offering up to two free years of its cloud security software to customers who make the switch, as a strategy to acquire more customers amid a slowdown in corporate spending and growing competition. Why it matters: Palo Alto Networks is facing competition from smaller cloud security startups like Wiz, Orca Security, and Lacework, which have rolled out automation features that Palo Alo Networks is yet to include in its services. What the numbers say: Palo Alto Networks’ revenue growth was 26% this January, compared to 30% in Jan. 2022. The company has also reported that the number of Prisma Cloud credits used by customers went from 55% growth YoY to 48% from Jan. 2022 to Jan. 2023. Data from Gartner shows that global cloud security spending has increased dramatically over the last six years; in 2017, it was $185M, and this year, that figure is projected to reach ~$6.7B. Brands that should care: Companies specializing in cloud security, regardless of size, should pay attention to which strategies are most effective in winning over long-term customers. These organizations should also look into market studies to learn which cloud security features are most sought out by customers so that they can align their services with the current trends. Furthermore, companies and organizations that purchase cloud security should review all their options before selecting a preferred provider to figure out which cloud security firm best meets their business needs. |
