Cybersecurity firm McAfee is buying four-year-old startup NanoSec, pioneer of the increasingly popular ‘container’ approach to cloud security.
NanoSec have developed a multi-cloud application security platform that uses ‘containerisation’ to help organisations protect data centre and cloud traffic. This segments each cloud application with a ‘wrapper’ that only allows necessary actions and connections, and blocks everything else to prevent threats from moving through the network.
The 20 NanoSec employees in California will now join McAfee’s Santa Clara office, and the container technology will be used to improve the technical capabilities of McAfee’s cloud access security broker products; MVISION Cloud and MVISION Server Protection.
“NanoSec’s technology is a natural extension for McAfee MVISION Cloud, enhancing our current cloud access security broker and cloud workload protection platform products, and adding to our ‘shift-left’ capabilities to deliver on the DevSecOps best practice to improve governance and security,” said Rajiv Gupta, senior vice-president and general manager of McAfee’s cloud security business unit.
As one of several recent deals, the acquisition indicates a growing interest in container-based security cloud architecture, which is becoming more critical as enterprises store and process ever greater volumes of data from next generation technologies including Internet-of-Things (IoT) devices, and AI.
Traditional security solutions like firewalls are no longer effective at securing these high volumes of data against sophisticated cyberattacks, making it more critical for enterprises to explore alternatives.
A study from Gartner suggests that by 2022, 75 percent of companies globally will rely on containers for security, and Grand View analysts forecast the market to register a CAGR of 26.5 percent from 2019 to 2025.
Several big deals have already been made in this nascent market, including IBM’s acquisition of Red Hat in July, and in the same month, Palo Alto Networks’ purchase of container security leader Twistlock for $410 million. As the market continues to expand, new vendors are likely to emerge, and we could expect an increasingly busy acquisitions scene.
About Acuity Advisors LLP
We know technology – that’s why we’re the industry’s trusted M&A advisor. Our partners are senior players in tech and M&A: skilled at getting to the heart of a technology business, understanding what will attract buyers, and building long-lasting relationships. We have an unrivalled understanding of the industry’s complexities and personalities – our track record and client feedback are compelling evidence of that. We’re an international firm – most of our deals are cross-border, from offices in London, Munich, Shanghai and Silicon Valley – but we’re grounded in our approach. We move quickly when it’s needed, and we’re around for the long haul when patience is a virtue. We’ve maintained a very high success rate across hundreds of deals while keeping our focus on doing what’s right for our clients. From first meeting to successful exit, we earn the trust that clients and investors put in us.
© 2019 Acuity Advisors LLP
A conversation is never wasted. We’re confident that we can give you all the help you need, but we’ll tell you if we think there’s a better option for you.Get in Touch