Alphabet’s Google Cloud and cybersecurity firm Palo Alto Networks on Friday announced an expanded partnership that a source described as Google Cloud’s largest security services deal to date, reports Reuters.
Under the agreement, Palo Alto Networks has committed to spend a sum “approaching $10 billion” on Google Cloud services over several years, according to a person with direct knowledge of the matter. Executives at both companies declined to comment on the specific value of the contract.
Part of the spending will support the migration of Palo Alto’s existing products to Google Cloud’s platform, while a significant portion will be used to develop new artificial intelligence–driven security services, Palo Alto Networks President BJ Jenkins told Reuters.
“AI has spawned a tremendous amount of demand for security,” said Matt Renner, chief revenue officer for Google Cloud.
While AI has already reshaped areas such as software development, Jenkins said cybersecurity remains in its early stages of transformation. “This is similar to when the cloud first emerged and created security threats no one had ever imagined,” he said.
Cyberattacks are increasingly being carried out using the same generative AI tools that security providers are deploying to strengthen defenses, intensifying competition in the sector.
Both companies have made substantial investments in security software as enterprises accelerate AI adoption. Google’s planned $32 billion acquisition of cybersecurity firm Wiz is pending regulatory approval, while Palo Alto Networks launched AI-powered offerings in October and last month announced plans to acquire software company Chronosphere for $3.35 billion.
Renner said the agreement underscores Google Cloud’s strong positioning as AI reshapes competition with rival hyperscalers Amazon and Microsoft.
Google Cloud and Palo Alto Networks have been strategic partners since 2018. Palo Alto CEO Nikesh Arora previously spent more than a decade at Google, serving as its chief business officer until 2014.
Bd-pratidin English/ Jisan
