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Palo Alto Networks Completes CloudGenix SD-WAN Acquisition, Plans SASE Push

Palo Alto Networks has completed the $420 million CloudGenix acquisition -- essentially countering Cisco Systems, Dell's VMware SD-WAN by VeloCloud, and Aryaka (among others) in the SD-WAN secure networking market.

Palo Alto Networks CEO Nikesh Arora
Palo Alto Networks CEO Nikesh Arora

CloudGenix's technology will tuck into Palo Alto Networks' secure access service edge (SASE) platform -- known as Palo Alto Networks Prisma Access. The platform delivers a global cloud network with cloud-delivered security, the company says.

CloudGenix co-founders Kumar RamachandranMani Ramasamy and Venkataraman Anand have agreed to join Palo Alto Networks. Palo Alto Networks paid approximately $420 million in cash, excluding purchase price adjustments, to acquire CloudGenix.

In a prepared statement about the acquisition, Palo Alto Networks CEO Nikesh Arora said:

"We are excited to welcome CloudGenix to Palo Alto Networks. CloudGenix has shown tremendous vision for how enterprises need to shift their security posture in today's cloud-scale, distributed environments. The integration of our platforms into a best-in-class SASE offering will benefit not only our combined customer base, but the industry at large as it continues to undergo network and security transformation."


Although the SD-WAN market is growing rapidly, many of the key players are overlooking MSSPs as a potential partner ecosystem and deployment model for SD-WAN expansion.

Key MSSP-focused players in the SD-WAN market include Cisco, Forinet and Netsurion, among others. Palo Alto Networks also has a strong following in the MSSP partner ecosystem, though we're watching to see if or how the CloudGenix code will assist MSSPs with their network and cybersecurity practices.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.