So far, the partnership with IBM, focusing on cybersecurity vendor acquisition of Qradar SaaS business and moving customers to XSIAM, “it wouldn’t have been any better,” Alora said on Thursday quarterly. He told an analyst over the phone.
Palo Alto Networks has entered into a “magnificent” partnership with IBM after a cybersecurity vendor acquired the IBM QRADAR SAAS business. Thursday’s quarterly call.
The cybersecurity giant signed a $500 million acquisition of IBM’s QRADAR SAAS business in September 2024, enabling customers to migrate from QRADAR to the Cortex XSIAM (Extended Security Intelligence and Automation Management) platform. It’s focused.
(Related: Palo Alto Networks CPO on Debut of Cortex Cloud: “Crowd Security Game Changer”)
As Palo Alto Networks wanted, IBM has helped its customers migrate to XSIAM. This has helped us to strengthen Palo Alto Networks’ financial results in the latest quarter.
Overall, “The partnerships that IBM had with many of these customers have been transformed into a very big opportunity for us,” he said. “So it wouldn’t have been better.”
Alora noted that one deal closed in the second quarter of the vendor and ended on January 31st. This showed a five-fold increase in annual recurring revenues for financial services companies, which were QRADAR’s customers. The bank was closed during the quarter with a “significant XSIAM deployment” with the Palo Alto Network, he said.
Arora commented as it revealed the second quarter of its financial results, including the impact of Palo Alto Networks owning IBM’s Qradar Saas assets.
Palo Alto Networks’ second quarter revenue reached $2.26 billion, up 14% from the same period last year. That was over the quarterly revenue that Wall Street analysts were expecting.
Palo Alto Networks shares fell 5.4% per share to $191 after trading Thursday.
XSIAM and Agent AI
XSIAM aims to provide AI-powered alternatives to traditional SIEM (security information and event management), and is a key contributor throughout the quarter, “the fastest growing in cybersecurity.” It continues to be one of our products.
With new applications coming to the market with complex security needs such as agent AI tools, there is no reason to expect XSIAM to slow down anytime soon.
“In XSIAM, we see all (application) data, so we hope that XSIAM will show agent activity,” says Arora.
Palo Alto Networks also hopes to find important opportunities to build their own agent-driven detection, repair and management capabilities within XSIAM, he said.
Meanwhile, Palo Alto Networks is a driving force behind “platformization,” a strategy that started a year ago to accelerate integration on security platforms, and has landed 75 new platforming deals in the last quarter. It’s catching up to customers.
“We’re able to make a huge advance in platforming and surpass both top-line and bottom-line expectations this quarter,” he told a call with analysts on Thursday.
