Microsoft (MSFT) to acquire cybersecurity startup Miburo
Microsoft MSFT recently announced its intention to acquire Miburo, a cyber threat research and analysis startup. Miburo specializes in detecting and responding to foreign information operations.
As part of the agreement, Microsoft will use Miburo’s cybersecurity technology to partner with other public and private sector companies to find solutions that keep customers safe online.
The move will allow Microsoft to expand its threat detection and analysis capabilities to deal with new cyberattacks. It will also help the company develop solutions to identify and stop foreign information operations.
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The company’s focus on strengthening the cybersecurity portfolio
Microsoft is one of the biggest players in cloud software and infrastructure, which means its technology is already the backbone of businesses of all sizes. This only makes sense if the company also makes security software available to its customers in a market where demand far exceeds supply.
The global cybersecurity market is expected to reach $317.02 billion by 2027 growing at a CAGR of 13.37%, according to Mordor Intelligence. Rising security threats are a constant reminder to organizations in all industries to upgrade their existing IT infrastructure.
These trends bode well for cybersecurity solution providers such as Microsoft. The company has worked to strengthen its portfolio of security solutions.
Microsoft has announced the extension of its cybersecurity skills to 23 additional countries. As part of the expansion, new targeted investments will be made in countries with a high cyber threat risk, such as Australia, Brazil, Canada, Colombia, France, Germany, India, South Africa and Mexico, among others.
Earlier, Microsoft released an update mentioning that revenue from its security business exceeded $15 billion, growing by around 45%. Management also disclosed that its cyber cloud solution, Azure Sentinel, is used by 15,000 customers globally.
Microsoft, which carries a Zacks Rank #3 (Hold), faces fierce competition in the addressable market from Palo Alto Networks PANW, Okta OKTA, CrowdStrike CRWD and others.
You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Palo Alto Networks, one of the largest pure-play security software companies, forecast revenue of $5.481 billion to $5.501 billion, suggesting growth of about 29% from fiscal year 2021 levels. Recently, Oracle selected Palo Alto Networks VM-Series Next-Generation Firewall (NGFW) as the technology to power the Oracle Cloud Infrastructure (OCI) network firewall.
CrowdStrike expects revenue growth of 51% to 52% in fiscal 2023. The company recently introduced a new capability called Humio for Falcon. This solution extends the retention of CrowdStrike Falcon telemetry data for over a year, improving threat analysis and threat hunting capabilities for organizations.
Okta, an independent identity management solutions provider, expects revenue growth of 39% to 40% in fiscal 2023. Okta has expanded its go-to-market relationship with Ingram Micro in more than 40 countries to worldwide. Under this agreement, Okta is expanding and strengthening Ingram Micro’s portfolio of proven cybersecurity solutions. It also introduces channel partners around the world to the growing opportunity for customer identity and access management solutions.
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