2024-04-08 15:42:42 ET
Summary
- We review Palo Alto Network's prospects in networking and network security via the same framework we applied to Fortinet in our last article.
- SASE is all about the first mile of transit for a data packet. However, there are the middle and last miles for investors to consider, as SASE evolves.
- Compared to FTNT, PANW is in a weaker position amid this broader view of networking and network security. Though, we are still bullish long-term thanks to PANW's other areas.
- Hence, in this article we will discuss PANW's prospects in SASE, SASO, and beyond (that is, the broad networking/network security landscape), and discuss cloud security and SecOps in a follow-up article.
- We also explain the idea behind Nikesh Arora's 'Platformization' strategy, but will share our own analysis of the merits and potential drawbacks in the follow-up article.
Leveraging Breadth for the New Plaftormization Strategy
Since 2022, Palo Alto Networ ks ( PANW ) ha s presented its business as three divisions, that are now referred to as platforms – Network Security, Cloud Security, and SecOps. Each division has acquired a significant number of leadership accolades from market analysts, such as Gartner and Forrester.
The entire ‘platformization’ strategy, first communicated in the 2Q24 earnings report, entails leveraging the breadth of these three respective platforms, brimming with many BoB (best-of-breed) solutions. The strategy addresses PANW’s issue when it tries to cross-sell to existing customers, who recognize the value of PANW's solutions but are already invested in something similar provided by a competitor. These customers find it hard to justify additional expenditure on PANW's offerings without first achieving a ROI from their initial choice....
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For further details see:
Palo Alto Networks: SASE, SASO, And Beyond