The statement of intent by Google, one of the largest companies in the world, for the largest purchase in the history of Israeli high-tech and of Google itself, provides significant support to Israeli industry, precisely in the most complex period of the State of Israel since its establishment.
The transaction, if carried out, may bring into the state coffers approximately 12.5 billion dollars, which is the annual security budget of the State of Israel.
What is it about Wiz (WIZ), the Israeli company that it wants to purchase at the highest price it has ever given to any company in the world?
The global high-tech industry was amazed by a report by the “Wall Street Journal” about the contacts that Google is conducting to purchase the Israeli cyber company Wiz for an unprecedented amount on any global scale, even for the technology giant itself: 23 billion dollars!
This is a significant expression of confidence in the Israeli industry and a statement that the business potential here outweighs all the consequences of the war, even though the Israeli industry is perhaps in its most difficult period ever.
The founders of the company, Assaf Rapoport and his friends who founded Wiz in 2019 and within five years they may sell the company in the largest deal ever in Israeli high-tech, are a special story in themselves. Rapaport himself is a man who maintains modesty and lives in a shared apartment, although he can afford any apartment, anywhere in the world.
To understand why Google would pay so much for a company whose annual revenues (about 200 million dollars) do not come close to the astronomical price tag, you need to understand its background: the cold war between the technology giants – in the field that is perhaps the most boring to the general public – cloud services.
Microsoft brings in more than 20 billion dollars a year from the field of cloud security, and the amount of money that large organizations pay for cloud services is astronomical and not close to being exhausted.
The increasing use of AI and the transformation of large enterprises, which move their information from on-premise servers to the cloud, has created a huge demand.
Google is indeed a giant in everything related to services for individuals and organizations, but specifically in the field of the cloud it is looking at the back of its major competitors Microsoft and Amazon.
What’s in Wiz?
Without going into the technical details, Wiz will create a security solution that can provide service to all types of cloud infrastructures, an advantage over the solutions of Microsoft and Amazon that only provide solutions for their own infrastructures.
This is a significant value for companies that often use the services of more than one provider.
Wiz did an excellent job creating a bigger aura for herself than her competitors, she built a significant network of contacts and a wide set of solutions using quite a bit of money. Its entrepreneurs and team have proven to be great at executing any task, adapting and building a significant portfolio of clients.
The ability to implement and make adjustments to each market will bring great value to the technology giant, which is looking for a significant breakthrough in the cloud field.
