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| Palo Alto Networks, Inc. (PANW)
Acquisition of CyberArk by Palo Alto Networks® Call |
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Corrected Transcript |
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30-Jul-2025 |
Thank you, Keith. Very comprehensive question. I appreciate you’re articulating the concern. I think
let’s start at the top where we said everybody believes identity security makes sense is something we have to have. Now, I think it goes – important to go back and reflect on what I said from an inflection point. I believe identity is
inflecting in the next two to three years. If you believe that, then we’re on the same page. Now, the question is, in the inflection moment, who wins? If you look at the inflection and endpoint, we saw a whole cast of characters go away and a
new cast of characters come, let alone [ph] not (00:34:04) even firewalls, we saw that happen. Now, you’re seeing that happen in the SIEM space. The question is, why doesn’t the market belong to future identity vendors in the identity
space where it belong to newer vendors in the existing space?
There’s one very important reason. If you ask a customer which part of the
infrastructure are they comfortable overhauling and revamping, they’re petrified of taking the identity infrastructure and replacing it, because they don’t know what’s connected to what. They don’t know what is going to shut
down. They don’t know what’s not – what’s going to stop working, because it’s connected to legacy systems, it’s connected to SaaS systems, it’s connected to futuristic systems. So, if an existing cybersecurity
vendor can provide the glide path to make that transition to new technologies, innovation and the new agentic AI threats out there, customers are more than likely to work with them than replace the entire stack.
We’ve discovered that in the SIEM space where we’ve been able to make a big technological leap and make that happen. So, if you believe; one,
identity security is inflecting; two, this market is going to be different, existing good players are going to be able to travel the journey with their customers as opposed to new players. And the question becomes, great, now, Palo Alto, how are you
going to take care of three things, which is your point about integration?
One, how are you going to keep the pace of innovation? Well, guess what? Seven
years ago, when I came to Palo Alto, we had to accelerate innovation. I’ve had a long conversation with Udi and Matt. We agree that they have to accelerate the pace of innovation and that we know how to do. We can work with them to accelerate
the pace of innovation. It is non-overlapping with our product portfolio. It is non-contentious. We will work with them to get them to move on identity faster. That’s the first question. So, that’s not going to create stress in our system.
The second question becomes, great, you’ve done that. Two, how do you create the integration points at scale, because this is a larger company, both
on the operating side and on the go-to market side. Those are two different parts. Now, remember, we have been actually internally, over the last seven years, taking speedboats, scaling them and merging them into our go-to market infrastructure.
Three years ago, we had a separate sales team for SASE. Today, our SASE sales team is our core sales team, right. Last year, we had a separate team for security operations management. We’re in the process of integrating that into our core team,
because we need to go target $10 billion, $20 billion of TAM. Guess what? Identity is a scaled team at CyberArk. Our job is to see how do we deploy the same techniques to go integrate that into our core team once we close this deal, so our
identity becomes front and center as one more platform. Guess what? Our teams have learned how to sell three. Going from three to four is a lot easier than going from one to two.
So, we believe we understand how the go-to market motion needs to be executed from a scale perspective. At the same time, we also work with our customers to
understand how to do a platform buy with Palo Alto. So good news is, we work with the customers, we work with our teams to make the go-to-market transition happen. We’ll do that too.
In terms of the organizational synergies, which is the third pillar, is how do we make sure that we can run that business much more efficiently over time? I
have no question that my team in the IT side, my team in the finance side, in the operational side is going to be able to make that happen. To be honest, that is not time critical. That is
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