The Palo Alto Networks Cortex XSOAR marketplace is gaining momentum, and much of the traction involves channel partners and service providers, according to CEO Nikesh Arora.
The online marketplace essentially is a digital storefront that allows partners and customers to find, install, exchange, contribute and manage various security content -- including playbooks, integrations, automations, fields and layouts.
In the latest quarter, the marketplace experienced over 80% growth in bookings influenced by systems integrators and MSP partners, Arora told Wall Street analysts during an earnings call on November 18, 2021.
The partner push continues with a new XMDR partner specialization with the Palo Alto Networks partner program, Arora also noted. Launch partners embracing the specialization include PwC, Orange Cyberdefense, CriticalStart and Trustwave -- all of which are Top 250 MSSPs, according to MSSP Alert's annual research.
Palo Alto Networks: Cloud Security R&D and Channel Partner Alignment
Meanwhile, Palo Alto Networks continues to optimize its sales motion and R&D for cloud services. Amid the hype and frothy valuations surrounding many cloud security startups, Arora insisted that Palo Alto Networks is well-positioned for the long-haul.
"We caught this cloud thing early in our mind," Arora said. "But we're getting our motion right, figuring it out, and now we started to enable channel partners. As we enabled channel partners, we have been able to amplify our ability to go and approach our customers with cloud capabilities. So as you can imagine, this is still a nascent market -- but I think, this is going to be a huge market in next five to seven years. No wonder you're seeing those lofty valuation of startups out there. I firmly believe we are 18- to 24-months ahead from a comprehensive platform perspective. We're not standing quietly."
On the R&D front, Palo Alto Networks employs more cloud-focused engineers than all of the cloud-focused security startups combined, he also insisted. "So we're not worried about our strength and our ability," Arora said. "We have to remain nimble, we have to remain agile, and we have to make sure we amplify our go-to-market capabilities. You will see us continuing to amplify our Cloud go-to-market capabilities and our Cortex go-to-market capabilities."
Palo Alto Networks: Financial Performance
Meanwhile, the overall Palo Alto Networks business appears to be performing well. For Q1 of fiscal 2022, Palo Alto Networks announced:
- Total revenue was $1.2 billion, up 32% compared to the fiscal first quarter of 2021.
- GAAP net loss was $103.6 million, compared with GAAP net loss of $92.2 million for the fiscal first quarter 2021.
The figures generally beat Wall Street's expectations.