Deloitte & Touche, a Top 250 MSSP, has acquired CloudQuest, a multi-cloud security posture management (CSPM) provider based in Cupertino, California. Financial terms of the deal were not disclosed.
This is technology M&A deal number 308 that MSSP Alert and sister site ChannelE2E have covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
The CloudQuest acquisition aligns with Deloitte's security orchestration, automation and response (SOAR) strategy, the buyer says.
CloudQuest launched a CSPM tool in the Google Cloud Platform (GCP) Marketplace in December 2019. The tool, called CloudQuest Guardian, gathers information from Google Cloud Security Command Center (Cloud SCC), and then enables the orchestration of security issues making them actionable and accountable, CloudQuest said at the time.
Cloud Security Posture Management Market Forecast
Most cloud security posture management (CSPM) tools help to lock down Amazon Web Services (AWS), Microsoft Azure and GCP, among other public cloud.
Demand for software is booming, as MSSPs and customers strive to identity and correct mis-configured cloud services that can trigger data breaches, data leaks and cybersecurity incidents.
Indeed, cloud security posture management-related revenues will reach $9 billion by 2026, up from $4 billion in 2020, according to Markets and Markets. That’s a 14.4 percent compound annual growth rate.
Amid surging market demand, multiple cybersecurity companies have developed or acquired their way into the CSPM market. Noteworthy cloud security posture management (CSPM) acquisitions include:
MSP- and MSSP-friendly security software companies such as Sophos have also entered the CSPM market.
Deloitte Acquires CSPM Security Technology: Executive Perspectives
In a prepared statement about the acquisition, Vikram Kunchala, Deloitte Risk & Financial Advisory Cyber Cloud leader and principal, said:
"While the global pandemic slowed some things, it didn't slow cloud migration or cloud reliance for the vast majority of organizations. As organizations work to build or advance their security postures for cloud or hybrid-cloud environments, we're expanding and diversifying our services and solutions portfolio to help our clients continuously monitor, prevent and remediate security threats."
Added Deborah Golden, Deloitte Risk & Financial Advisory Cyber and Strategic Risk leader and principal:
"We see incredible opportunity in novel approaches that help organizations securely transform and operate while also realizing competitive advantage—and we're continually investing to bring the most innovative solutions to our clients. Our acquisition of CloudQuest represents our profound commitment to transforming alongside our clients, competing vigorously in the market, and aggressively building out tech-enabled approaches that position Deloitte cyber as an unquestionable business enabler."
Concluded Vijay Sarathy, co-founder and CEO, CloudQuest:
"Joining Deloitte will enable us to expand our capabilities, helping organizations protect against the next generation of security threats, promote continued innovation and agility, and foster more efficient cloud security capabilities. This new chapter is one that my co-founders Ramesh Menon, Nishan Sathyanarayan and I always hoped to achieve, as we worked to help those in the cloud accelerate their cybersecurity efforts."
The is Deloitte's second cyber acquisition of 2021. The other acquisition involved cyber threat hunter Root9B in January 2021.
