Can Palo Alto Networks XSIAM Disrupt SIEM Security Software Market?

Palo Alto Networks has announced Cortex Extended Security Intelligence & Automation Management (XSIAM), an artificial intelligence-based platform that seeks to disrupt the traditional SIEM (Security Information and Event Management) market.

Cortex XSIAM, available now to a limited set of customers, can collect granular data — not just logs and alerts —  to drive machine learning for "natively autonomous response actions," Palo Alto Networks asserts. The overall platform cost will be nearly 50 percent less than legacy SIEM products, Palo Alto Networks added. Still, the company did not announce actual pricing, a general availability date or key SIEM rivals that it was targeting.

SIEM Market Growth, Cloud Evolution

Global SIEM market revenues are expected to increase at a compound annual growth rate of 6.8 percent between 2020 and 2027, according to market researcher Valuates Reports. These revenues also are projected to exceed $3.9 billion by 2027.

Meanwhile, the overall SIEM market remains in transition -- with multiple companies introducing cloud-based options. Moreover, multiple SIEM and SOAR software businesses now emphasize XDR (eXtended Detection and Response) capabilities. Plus, M&A activity as well as investor activity across the SIEM, SOAR and XDR markets remains strong. Example deals include:

Palo Alto Networks: XSOAR Marketplace, MSSP Partners

The Cortex SIAM announcement comes after Palo Alto Networks CEO Nikesh Arora in November 2021 said his company's Cortex XSOAR marketplace is gaining momentum with channel partners and service providers. At the time, Arora stated this marketplace experienced over 80 percent growth in bookings in the most recent fiscal quarter.

Meanwhile, Palo Alto Networks offers the NextWave Service Program (MSP) to MSSPs and other channel partners. The program includes more than 300 partners, including Trustwave, Critical Start and several other Top 250 MSSPs.