Google (GOOG) said on Tuesday that it has agreed to purchase cybersecurity firm Mandiant for $5.4 billion, one of the largest acquisitions in the company’s history and a huge bet that helping businesses better manage cyber dangers may benefit the company’s cloud computing business.
In a joint statement released Tuesday, Google and Mandiant said, “The purchase of Mandiant will enhance the company’s Cloud’s current capabilities in security.” “The purchase, when combined with the company’s Cloud’s cloud-native security capabilities, will enable companies around the world to stay secure at every stage of the security lifecycle.”
The company’s Cloud is at the heart of the company’s efforts to diversify its revenue streams away from its main search advertising business. Despite its rapid growth, It has struggled to compete with similar services from other companies.
Microsoft was also speculated to be interested in buying Mandiant, a threat intelligence, incident response, and cybersecurity testing company. The Solar Winds hack, which compromised a variety of federal organisations and commercial firms, was discovered by Mandiant.
Google’s cloud business is “playing catch-up to Microsoft in cybersecurity,” according to Jeff Pollard, VP and lead analyst at Forrester, forcing Google “to pay a premium and be more aggressive.” Google has “signalled” its willingness to do precisely that, he claims, with this acquisition.