Platform Wars: Cybersecurity's New Era
05 August 2025
The Palo Alto-CyberArk and Google-Wiz mega-deals signal a fundamental shift in how enterprises buy and deploy cybersecurity.
Bottom line
- Platform consolidation and identity-cloud convergence are increasingly the dominant forces in cybersecurity investment.
- Enterprise demand for unified security is creating winner-takes-all dynamics, validating our platform-focused portfolio strategy.
- We're still in the early innings of a cybersecurity investment supercycle driven by AI and cloud transformation.
The convergence trends highlighted by these acquisitions align perfectly with our investment thesis: now is the time to double down on platform plays within the Cybersecurity sector.
What happened
Last week, Palo Alto Networks Inc announced the acquisition of Cyberark Software Ltd (both in our portfolio) in a deal worth ~$25bn, making its way into the top-3 M&A by size in the industry after the acquisition of Wiz by Alphabet earlier this year.
Impact on our Investment Case
These deals confirm our stance on the trends shaping the industry (and our portfolio). Cybersecurity is still at the early innings of an investment supercycle, significantly driven by technological transition. Digitization has made IT networks a critical infrastructure for enterprises, and cybersecurity is not an option any longer. A new generation of players is taking over, relying on AI and cloud-enabled technologies.
Platform consolidation is accelerating
The industry is rapidly moving from best-of-breed point solutions to comprehensive platforms. Both deals signal that scale and horizontal integration are now table stakes, with major players consolidating identity, cloud, and network security under single umbrellas. This raises barriers for smaller players and validates platform-centric investment strategies.
Identity and cloud security are converging
As enterprises operate across multi-cloud environments, identity has become the new perimeter. These recent deals highlight the rising importance of identity management (CyberArk's strength) and cloud security (Wiz's domain). As cybersecurity architecture shifts towards a zero-trust approach, these domains become inseparable.
Enterprise buyers are reshaping the market
Fortune 500 companies increasingly demand unified security operations: fewer vendors, integrated dashboards, and cross-domain visibility. This enterprise pull is driving consolidation and creating winner-takes-all dynamics in key security categories.
Our Takeaway
The Palo Alto-CyberArk and Google-Wiz acquisitions confirm the trends that are shaping how the industry innovates and competes: identity as the foundational security domain, multi-cloud/multi-environment coverage, zero trust, and the convergence with AI. These are the long-term drivers that have underpinned our Cybersecurity portfolio since its inception. Our strategy is positioned to capture exactly these trends, although we tactically adjust the portfolio for risk management purposes.
Companies mentioned in this article
Alphabet (GOOGL); Cyberark Software Ltd (CYBR); Palo Alto Networks Inc (PANW)
Explore:
Disclaimer
This report has been produced by the organizational unit responsible for investment research (Research unit) of atonra Partners and sent to you by the company sales representatives.
As an internationally active company, atonra Partners SA may be subject to a number of provisions in drawing up and distributing its investment research documents. These regulations include the Directives on the Independence of Financial Research issued by the Swiss Bankers Association. Although atonra Partners SA believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this report.
The information contained in these publications is exclusively intended for a client base consisting of professionals or qualified investors. It is sent to you by way of information and cannot be divulged to a third party without the prior consent of atonra Partners. While all reasonable effort has been made to ensure that the information contained is not untrue or misleading at the time of publication, no representation is made as to its accuracy or completeness and it should not be relied upon as such.
Past performance is not indicative or a guarantee of future results. Investment losses may occur, and investors could lose some or all of their investment. Any indices cited herein are provided only as examples of general market performance and no index is directly comparable to the past or future performance of the Certificate.
It should not be assumed that the Certificate will invest in any specific securities that comprise any index, nor should it be understood to mean that there is a correlation between the Certificate’s returns and any index returns.
Any material provided to you is intended only for discussion purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security and should not be relied upon by you in evaluating the merits of investing inany securities.
Back to research
