How Broadcom deal will change the competitive landscape

We forecast the emergence of "big-3" in the cloud security landscape

The pandemic-induced surge led to an explosion of cybersecurity startups, many of which are now at a critical juncture—poised to either progress to maturity or diminish under market pressures. The upcoming Broadcom/Zscaler deal is likely to catalyze a market correction, shifting away from the frenetic pace of recent years towards more sustainable growth trajectories.

Shift in Investment and Commercial Dynamics

The term "spending fatigue" has resonated across the industry, popularized by comments from Palo Alto's Nikesh Arora and lampooned by Crowdstrike’s CEO, George Kurtz. Despite initial skepticism, this notion has increasingly gained traction, belied by resilient growth rates in recent cybersecurity earnings. As our readers know, however, this is a story of halves - or maybe have’s and have not’s. While cloud native platforms such as Crowdstrike and Zscaler continue to grow, those such as Palo Alto and Fortinet have to contend with their legacy firewall revenue, too, which has been c…