skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.

Omdia view


Zscaler, which provides security services from the cloud, has announced the acquisition of Cloudneeti, a developer of cloud security posture management (CSPM) technology for securing workloads in infrastructure- and platform-as-a-service (IaaS and PaaS) environments. The move accelerates the trend for CSPM to become part of broader product portfolios through M&A.

CSPM checks security posture in the pipeline and at runtime

CSPM technology is an essential part of cloud security. It analyzes a company's cloud workloads in the build pipeline and in production with a view to detecting whether any have moved away from the prescribed best practices, representing a security risk or a potential compliance shortfall. The former situation is sometimes referred to as going outside the guardrails for secure development, while the latter is often called compliance drift. While CSPM started out as an alerting mechanism for IT departments to rectify perceived drift, over time many vendors have added autocorrect capabilities to ease the burden on these teams.

Omdia has recently indicated that CSPM will inevitably disappear as a standalone market segment as more and more startups in the space are acquired by vendors with larger security portfolios, as is the case here. This makes sense from a capabilities standpoint, because there are additional requirements for security in IaaS and PaaS, and it is a positive trend from the customers’ perspective.

Cloudneeti was founded in July 2017 and is based in Redmond, Washington. It launched its technology as a virtual machine on the Azure Marketplace in October the same year and went on to develop a software-as-a-service (SaaS) service, which it unveiled in November 2018. The service was also launched on the Azure Marketplace in October 2019. The vendor has about 50 employees.

Cloudneeti becomes part of Zscaler Data Protection suite

Cloudneeti will now become part of the Zscaler Data Protection suite of services, which also includes:

  • Data loss prevention (DLP), which gives visibility and remediation across applications and locations to ensure that data access and usage matches the organization's policy

  • Inline cloud access security broker (CASB) technology for securing corporate employees’ access to SaaS services

  • Remote browser isolation, which protects end users’ devices by “isolating” them from the internet. When a user accesses a webpage or app, it is loaded onto a remote browser that serves a rendering of the webpage to the user. No active content is downloaded, so any malicious code that might be hidden in the page or app is kept at bay.

The wave of acquisitions of CSPM vendors includes buyers that are direct rivals of Zscaler, including key competitor Palo Alto Networks. The addition of Cloudneeti's capabilities is therefore essential to remain competitive as vendors broaden their cloud-delivered product portfolios.


Further reading

“Check Point CPX 2020 recap: Cloud is the focus, complexity is the problem”, INT005-000092 (February 2020)

Cloud security – IaaS and PaaS, INT005-000063 (December 2019)

“FireEye buys Cloudvisory, makes late push into cloud security posture management”, INT005-000086 (January 2020)

“Aqua expands into cloud posture management with CloudSploit acquisition”, INT005-000057 (November 2019)

“Trend Micro adds cloud security and compliance checking with Cloud Conformity buy”, INT005-000043 (October 2019)


Rik Turner, Principal Analyst, Infrastructure Solutions

[email protected]

Recommended Articles

  • Close encounters of the remote kind

    Work from home (WFH) was a lifesaver for many enterprises during the COVID-19 pandemic, but there are some negative effects to consider. WFH reduces serendipity, affects lifestyles and mental wellbeing, and can disengage participants.

  • Ovum

    Telecoms IT Contracts Analytics Tool: Half-yearly Analysis, 2H19

    Contracts analysis. A quantitative analysis of telecoms IT contracts spanning OSS, BSS, data management, and analytics segments announced in 2H19. Monetization and management of digital technologies are key drivers for CSP investments.

  • Ovum

    Payments Technology Spending Through 2024: Source Segmentation

    This interactive model provides market sizing and forecasting of technology spending across the payments sector from 2018 to 2024, with a view of spend across technology source.