Zscaler is acquiring Cloudneeti, a cloud security posture management (CSPM) company. Cloudneeti's software allows MSPs and software developers to spot misconfigurations across Amazon Web Services (AWS), Microsoft Azure, Office 365 and Google Cloud Platform, and then helps those users to analyze and fix those misconfigures.
This is M&A deal number 175 that ChannelE2E has covered so far in 2020. The pace of deals has slowed a bit since the coronavirus pandemic emerged, but overall M&A activity remains reasonable steady. See the complete M&A deal list here.
The Cloudneeti deal is expected to close before Zscaler’s fiscal third quarter ends. Financial terms were not disclosed.
Zscaler Acquiring Cloudneeti: Technology Details
Cloudneeti, based near Seattle, Washington, was founded in 2017. The company has 50 or fewer employees -- 40 of whom are listed on LinkedIn. The company's software prevents and remediates application misconfigurations in SaaS, IaaS and PaaS. Those misconfigurations often lead to data breaches and compliance violations in cloud applications, the company asserts.
It's a safe bet Cloudneeti's technology will align with Zscaler Internet Access (ZIA), Cloud Access Security Broker (CASB), and Zscaler Private Access (ZPA) technology. Integrations will allow developers to find and automatically correct misconfigured applications and compliance violations in cloud service provider environments, Zscaler asserts.
On the partner front, Cloudneeti's MSP partner program focuses on cloud security assessments, assurance and DevSecOps. IT consulting firms, particularly risk assessment businesses, also partner with the software company. Target customers include ISVs and enterprise firms.
Zscaler Acquiring Cloudneeti: Executive Perspectives
In a prepared statement, Jay Chaudhry, chairman and CEO of Zscaler, said:
“Cloudneeti augments Zscaler’s data protection capabilities and will dramatically improve organizations’ cloud security by discovering and eliminating some of the most common causes of data breaches and compliance violations. Whether caused by SaaS applications being configured incorrectly or a developer accidentally misconfiguring a new public cloud application, these preventable data protection lapses are behind some of the biggest breaches in history. I am thrilled to welcome the Cloudneeti team to the Zscaler family.”
Added Gururaj Pandurangi, founder and CEO of Cloudneeti"
“Pravin and I founded Cloudneeti with a vision to end breaches and compliance violations that are caused by entirely preventable misconfigurations as applications move to the cloud. Cloudneeti was built in the cloud for the cloud, which is why Zscaler is such an exciting technological and cultural fit for the team. We are excited to be working with Zscaler to provide market-leading security assurance to help customers accelerate their digital transformation journey.”
