Palo Alto Networks’ XSIAM platform has shown promise in the SIEM market, but a deal with IBM is poised to provide the boost CEO Nikesh Arora has been seeking. In just 18 months since its launch, XSIAM has amassed $400 million in reserves, establishing itself as a formidable contender in the space. However, Arora and other leaders at Palo Alto Networks felt that progress was not moving quickly enough.
The announcement of Palo Alto Networks’ acquisition of IBM’s QRadar SaaS business, valued at $500 million, is expected to significantly accelerate the company’s position in the SIEM market. This move is crucial in the face of increased competition and market disruption, as evidenced by recent consolidations within the industry.
While XSIAM’s AI-driven approach has garnered interest among partners and customers, it was not enough to secure a spot in Gartner’s Magic Quadrant for SIEM. In contrast, IBM’s QRadar has been recognized as a leader in the quadrant, indicating its established presence in the market.
The acquisition of QRadar not only provides Palo Alto Networks access to a new customer base but also a means to transition these customers to XSIAM. This strategic move is expected to propel Palo Alto Networks to a prominent position in the SIEM market, as stated by Forrester principal analyst Allie Mellen.
For IBM, the sale of its QRadar business represents a shift away from a declining market segment. The company’s recent decline in threat management revenue underscores the need for strategic realignment, as exemplified by its acquisition of HashiCorp and focus on data security.
Despite the changes brought about by the acquisition, IBM is committed to supporting its partners in transitioning to Palo Alto Networks’ offerings. IBM channel manager Kate Woolley emphasized the collaboration between IBM and Palo Alto Networks in assisting partners with the transition process.
Overall, the deal between Palo Alto Networks and IBM signifies a significant development in the SIEM market, with both companies poised to benefit from the strategic alignment. As Palo Alto Networks solidifies its position in the industry, IBM moves towards a new direction in its security business strategy. The partnership between the two companies underscores their commitment to innovation and growth in the evolving landscape of cybersecurity.
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https://www.crn.com/news/security/2024/ibm-qradar-deal-is-exactly-what-palo-alto-networks-needs-for-xsiam-analysis
