9.1.2Segment

Cloud Security

Cloud security platforms protecting applications, workloads, and configurations in cloud environments.

4
Verticals

Overview

Cloud Security covers the protection of cloud environments — cloud security posture management (CSPM), cloud workload protection (CWPP), and the converged cloud-native application protection platforms (CNAPP) that secure cloud infrastructure, workloads, and applications. It is among the hottest security categories, led by Wiz (acquired by Google for ~$32B), Palo Alto Prisma Cloud, and Orca, alongside the hyperscalers' native tools.

Demand is propelled by the migration of workloads to cloud and the complexity of securing multi-cloud environments, with CNAPP consolidating formerly separate cloud-security tools into platforms. It is consolidating rapidly (Wiz's meteoric rise and acquisition epitomize the category's value) and one of the most heavily-invested and acquired security segments.

Market snapshot

FragmentationConsolidating

Cloud security is a fast-growing cybersecurity sub-category within software publishing (NAICS 513210) and is not separately disclosed by the Census Bureau, so the segment is not separately sized here.

Business model & economics

Revenue model
Cloud-security platform SaaS subscriptions
Recurring revenue
High — recurring cloud-security subscriptions
EBITDA margin
Strong — scaled SaaS economics
Capex intensity
Low
  • CSPM/CWPP converging into CNAPP platforms.
  • Led by Wiz (Google ~$32B), Prisma Cloud, Orca.
  • Among the hottest, most-invested security segments.

M&A deal context

High deal activity

Who’s acquiring

Hyperscalers & security platformsSecurity majorsVC- and PE-backed vendors

What’s driving deals

  • Cloud migration and multi-cloud complexity.
  • CNAPP platform consolidation.
  • Mega-deal M&A (Wiz).

Verticals in this segment

  • 9.1.2.1Cloud Access Security Brokers (CASB)

    Platforms enforcing security policy between users and cloud services.

  • 9.1.2.2Cloud Native Security Platforms

    Security platforms designed for containerized and cloud-native workloads.

  • 9.1.2.3Cloud Security Posture Management

    Tools monitoring and correcting cloud configuration vulnerabilities.

  • 9.1.2.4Cloud Workload Protection

    Platforms securing containers, VMs, and cloud-native workloads.

Find Cloud Security acquisition targets

Search Acquisera’s index for companies classified under Cloud Security (9.1.2) and build a targeted deal pipeline.

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