News Summary:
- IBM to platformize internal security solutions with Palo Alto
Networks; Palo Alto Networks will be its preferred cybersecurity
partner across network, cloud and SOC
- Palo Alto Networks will incorporate watsonx large language
models (LLMs) in Cortex XSIAM to deliver additional Precision AI™
solutions
- IBM will bolster its leading security services to drive a
significant book of business in cybersecurity and AI security,
featuring Palo Alto Networks platforms in its expanded
portfolio
- IBM will train more than 1,000 of its security consultants on
migration, adoption and deployment of Palo Alto Networks
products
- Palo Alto Networks has agreed to acquire IBM's QRadar Software
as a Service (SaaS) assets, and the two companies will partner to
offer seamless migration for QRadar customers to Cortex XSIAM
- IBM will accelerate innovation and investment in data security
and identity and access management for hybrid cloud and AI; will
partner with Palo Alto Networks on security operations, threat
management, and DevSecOps
SANTA
CLARA, Calif. and ARMONK,
N.Y., May 15, 2024 /PRNewswire/ -- Palo
Alto Networks (NASDAQ: PANW), the global cybersecurity leader, and
IBM (NYSE: IBM), a leading provider of hybrid cloud and AI, today
announced a broad-reaching partnership to deliver AI-powered
security outcomes for customers. The announcement is a testament to
Palo Alto Networks' and IBM's commitment to each other's platforms
and innovative capabilities.
The expanding and complex enterprise technology landscape,
driven by digital transformation and the rapid growth of AI,
presents significant cybersecurity challenges. To address
increasingly sophisticated threats and evolving attack surfaces,
organizations are prioritizing comprehensive security platforms
that are underpinned by AI. Palo Alto Networks and IBM aim to help
streamline and transform security operations, stop threats at
scale, and accelerate incident remediation for their customers with
the complete AI-powered approach that is required. These industry
dynamics, paired with today's partnership announcement, present
significant opportunities for both companies.
As part of this expanded partnership, Palo Alto Networks has
agreed to acquire IBM's QRadar SaaS assets, including QRadar
intellectual property rights, subject to customary closing
conditions. Upon closing, Palo Alto Networks and IBM will
facilitate the migration of QRadar SaaS clients to Cortex® XSIAM®,
the leading next-generation security operations (SOC) platform,
with advanced AI-powered threat protection supported by 3,000
out-of-the-box detectors. On-premise (on-prem) QRadar clients who
wish to remain on QRadar on-prem will continue to receive IBM
features and support including security, usability and critical bug
fixes, as well as updates to existing connectors and the ability to
expand consumption. For both QRadar SaaS and on-prem clients who
chose to migrate to Cortex XSIAM, the companies, along with their
ecosystem of business partners, will closely collaborate to enable
a smooth transfer, with IBM and Palo Alto Networks offering no-cost
migration services to qualified customers. As part of this
agreement, IBM will receive incremental payments from Palo Alto
Networks for QRadar on-prem clients who choose to migrate to the
Cortex XSIAM platform.
Nikesh Arora, Chairman and
CEO, Palo Alto Networks:
"The security industry is at
an inflection point where AI will transform businesses and deliver
outcomes not seen before. It's a moment to accelerate growth and
innovation. Together with IBM, we will capitalize on this trend,
combining our leading security solutions with IBM's pioneering
watsonx AI platform and premier services to drive the future of
security platformization with complete, AI-powered,
secure-by-design offerings."
Arvind Krishna, Chairman and
CEO, IBM:
"Strategic partnerships like the one we're
announcing today with Palo Alto Networks bring with them
significant benefits across the industry. Advanced threat
protection and automation, underpinned by Cortex XSIAM and watsonx,
and coupled with IBM Consulting, will speed client and partner
adoption of next-generation security operations. We'll deliver
these capabilities with Palo Alto Networks, and accelerate our
security investments and innovation in areas like data security and
identity and access management. These are critical offerings that
our clients need when protecting their data, hybrid cloud
environments, AI models and applications. We are delighted to be
partnering with the Palo Alto Networks team and we are excited
about the future of AI-powered cybersecurity innovation."
Companies to Establish Joint Security Operations
Center
IBM Consulting will be a preferred Managed Security
Services Provider (MSSP) for current and future Palo Alto Networks
customers. In addition, a joint Security Operations Center will
feature a managed SOC, and the companies will also establish a
joint Cyber Range that will offer immersive experiences for
customers to further understand the value of Palo Alto Networks
security products. IBM's experts with global, regional, and local
delivery capabilities will use watsonx, IT automation, and threat
intelligence to enhance advisory efforts and drive growth and
adoption of Palo Alto Networks security platforms.
As IBM's cybersecurity partner of choice, Palo Alto Networks'
leading cybersecurity solutions will be accessible in IBM's
Consulting Advantage AI services platform, including the building
of assets and repeatable methods to support scale. Together, Palo
Alto Networks and IBM will accelerate consultant training, enabling
more than 1,000 IBM experts to provide optimal migration,
deployment, and adoption services across Palo Alto Networks
platforms. IBM will also build industry-vertical capabilities on
top of Cortex XSIAM, leveraging watsonx. Consistent with IBM
partnerships with other major technology companies, IBM anticipates
that this alliance will drive a significant security book of
business with Palo Alto Networks.
Strengthening Mutual Customer Relationships
IBM
intends to expand its deployment of Palo Alto Networks AI-powered
security platforms internally, adopting Cortex XSIAM for next-gen
security operations and Prisma SASE 3.0 for zero-trust network
security to safeguard more than 250,000 of its global workforce.
IBM's adoption of security platformization is a marquee example of
how customers can benefit from the streamlined operations of
security products across the Palo Alto Networks portfolio.
Palo Alto Networks intends to integrate watsonx LLMs into Cortex
XSIAM to drive additional automation capabilities, as well as
leverage IBM's watsonx to accelerate its roadmap to improve
customer support outcomes. watsonx will help Palo Alto Networks
proactively address known technical issues, create tailored
self-service solutions, and boost overall agent productivity within
Palo Alto Networks customer support operations. In addition, Palo
Alto Networks plans to deploy other IBM software products to
benefit from the latest innovations in cloud and automation.
Bringing DevSecOps Capabilities to Market
Through this
forward-looking collaboration, IBM will expand its relationship
with Prisma® Cloud, the industry's most comprehensive cloud native
application protection platform (CNAPP). Prisma Cloud will expand its existing
integrations with current and future IBM DevOps offerings,
including cloud-native security built for Red Hat OpenShift and
Ansible. IBM's strength in DevOps, coupled with Palo Alto Networks
cloud security expertise, will embolden "secure-by-design"
DevSecOps capabilities for joint customers to help prevent insecure
code from running in cloud workloads in production.
The transaction portion of this announcement is expected to
close by the end of September 2024
and is subject to regulatory approvals and other customary closing
conditions. Financial terms of the transaction have not been
disclosed.
About Palo Alto Networks
Palo Alto Networks is the
world's cybersecurity leader. We innovate to outpace cyberthreats
so organizations can embrace technology with confidence. We provide
next-gen cybersecurity to thousands of customers globally across
all sectors. Our best-in-class cybersecurity platforms and services
are backed by industry-leading threat intelligence and strengthened
by state-of-the-art automation. Whether deploying our products to
enable the Zero Trust Enterprise, responding to a security
incident, or partnering to deliver better security outcomes through
a world-class partner ecosystem, we're committed to helping ensure
each day is safer than the one before. It's what makes us the
cybersecurity partner of choice.
At Palo Alto Networks, we're committed to bringing together the
very best people in service of our mission, so we're also proud to
be the cybersecurity workplace of choice, recognized among
Newsweek's Most Loved Workplaces (2023, 2022, 2021), with a score
of 100 on the Disability Equality Index (2023, 2022), and HRC Best
Places for LGBTQ Equality (2022). For more information, visit
www.paloaltonetworks.com.
Palo Alto Networks, Cortex, Cortex XSIAM, Prisma,
Precision AI, and the Palo Alto Networks logo are trademarks of
Palo Alto Networks, Inc. in the United
States and in jurisdictions throughout the world. All other
trademarks, trade names, or service marks used or mentioned herein
belong to their respective owners.
About IBM
IBM is a leading provider of global hybrid
cloud and AI, and consulting expertise. We help clients in more
than 175 countries capitalize on insights from their data,
streamline business processes, reduce costs and gain the
competitive edge in their industries. Thousands of government and
corporate entities in critical infrastructure areas such as
financial services, telecommunications and healthcare rely on IBM's
hybrid cloud platform and Red Hat OpenShift to affect their digital
transformations quickly, efficiently and securely. IBM's
breakthrough innovations in AI, quantum computing,
industry-specific cloud solutions and consulting deliver open and
flexible options to our clients. All of this is backed by IBM's
legendary commitment to trust, transparency, responsibility,
inclusivity and service. Visit www.IBM.com for more
information.
Forward Looking Statements
Certain statements
contained in this communication may be characterized as
forward-looking under the Private Securities Litigation Reform Act
of 1995. These statements involve a number of risks, uncertainties
and other factors that could cause actual results to differ
materially.
Statements in this communication regarding IBM and Palo Alto
Networks that are forward-looking may include statements regarding:
(i) the Transaction; (ii) the expected timing of the closing of the
Transaction; (iii) considerations taken into account in approving
and entering into the Transaction; (iv) the anticipated benefits
to, or impact of, the Transaction on IBM's and Palo Alto Networks'
businesses; and (v) expectations for IBM and Palo Alto Networks
following the closing of the Transaction. There can be no assurance
that the Transaction will be consummated.
Risks and uncertainties that could cause actual results to
differ materially from those indicated in the forward-looking
statements, in addition to those identified above, include: (i) the
possibility that the conditions to the closing of the Transaction
are not satisfied, including required regulatory approvals to
consummate the Transaction are not obtained, on a timely basis or
at all; (ii) possible disruption related to the Transaction to
IBM's and Palo Alto Networks' current plans, operations and
business relationships, including through the loss of customers and
employees; (iii) the amount of the costs, fees, expenses and other
charges incurred by IBM and Palo Alto Networks related to the
Transaction; (iv) the risk that IBM's or Palo Alto Networks' stock
price may fluctuate during the pendency of the Transaction and may
decline if the Transaction is not completed; (v) the diversion of
IBM and Palo Alto Networks management's time and attention from
ongoing business operations and opportunities; (vi) the response of
competitors and other market participants to the Transaction; (vii)
potential litigation relating to the Transaction; (viii)
uncertainty as to timing of completion of the Transaction and the
ability of each party to consummate the Transaction; and (ix) other
risks and uncertainties detailed in the periodic reports that IBM
and PAN filed with the SEC, including IBM's and Palo Alto Networks'
respective Annual Reports on Form 10-K. All forward-looking
statements in this communication are based on information available
to IBM and Palo Alto Networks as of the date of this communication,
and, except as required by law, IBM and Palo Alto Networks do not
assume any obligation to update the forward-looking statements
provided to reflect events that occur or circumstances that exist
after the date on which they were made.
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SOURCE Palo Alto Networks, Inc.; IBM