Move will expand vendor’s SASE platform to branch offices, retail stores
Palo Alto Networks is adding software-defined WAN (SD-WAN) to its portfolio with the planned $420 million acquisition of CloudGenix.
The Lowdown: Palo Alto, which partnered with CloudGenix in November 2019 for secure SD-WAN, announced its plans this week. The deal is expected to close this summer.
The Details: SD-WAN is the fastest-growing segment in the larger software-defined networking (SDN) space, enabling enterprises to better manage their networks in branch offices, retail stores, and other remote sites. With SD-WAN, businesses can move their branch office network traffic over less expensive alternatives than MPLS.
Palo Alto will integrate CloudGenix’s cloud-managed SD-WAN products into its Prisma Access secure access service edge (SASE) platform to more easily and securely onboard the remote sites onto the network. The combination with CloudGenix will enable Palo Alto to expand the reach of Prisma Access out to the branch and retail stores.
Prisma Access, which launched last year and runs on the Google Cloud infrastructure, enables customers to more securely connect the branch to the cloud and edge environments. According to Palo Alto, the goal is to make the shift in the branch from SD-WAN to SASE.
The Impact: CloudGenix, which says it’s a 100% channel company, brings with it about 250 customers in such areas as healthcare, retail, manufacturing, financial services, technology, and hospitality. The rise of SD-WAN brought with it a slate of pure-play start-ups looking to compete with established vendors like Cisco and Juniper. Over the past several years, such big companies have bolstered their SD-WAN capabilities by scooping up smaller vendors. Cisco, for example, acquired Viptela in 2017. VMware purchased VeloCloud for $442 million a year later. And VMware bolstered its SD-WAN capabilities earlier this year when it announced it was buying Nyansa for its analytics capabilities.
Background: Demand for SD-WAN continues to grow, driven by the cloud, the Internet of Things (IoT), greater mobility, and the rise of edge computing. IDC forecasts call for the global SD-WAN market to grow an average of 31% a year through 2023, when it will reach $5.25 billion.
The Buzz: “As the enterprise becomes more distributed, customers want agile solutions that just work, and that applies to both security and networking,” Palo Alto Chairman and CEO Nikesh Arora said. “Upon the close of the transaction, the combined platform will provide customers with a complete SASE offering that’s best-in-class, easy to deploy, cloud-managed, and delivered as a service.”
“CloudGenix’s vision has been to revolutionize branch offices through cloud-delivered autonomous WANs,” said Kumar Ramachandran, co-founder and CEO of CloudGenix. “With CloudGenix, enterprises gain cloud-scale economics for the branch office with the freedom to use any WAN, any cloud, and best-of-breed infrastructure services. We thank our customers for making us an industry leader in enterprise SD-WAN. By joining forces with Palo Alto Networks, we will accelerate our ability to serve customers and partners in their network and security transformation.”