10 Top Cloud Security Companies

- September 15th, 2020

With the cloud-managed services sector poised to reach US$116.2 billion by 2025, here’s a look at the 10 top cloud security companies.

Cloud security is not only a hot commodity, but a necessary one, and businesses are steadily increasing their adoption of services provided by the top cloud security companies.

Research firm Markets and Markets estimates that the overall global cloud-managed services (CMS) market was worth US$62.4 billion in 2020, and is projected to reach US$116.2 billion by 2025.

“The major factor driving the growth of the market is the desire of companies to cut capital costs and transfer into operational costs. Organizations can avoid huge infrastructural capital investments by adopting CMS. The CMS also helps organizations to let their IT workforce to focus on main business functions and improve productivity,” its report states.

According to ZDNet, one of the biggest factors impacting growth for the top cloud security companies is the COVID-19 pandemic, which has led to more remote work that is largely done via cloud infrastructure.

With the industry poised for substantial growth, here’s a look at the 10 top cloud security companies by revenue. All information comes from ZDNet and was current as of market close on August 10, 2020.

1. Amazon (NASDAQ:AMZN)

Market cap: US$1.58 trillion

This US ecommerce and cloud-computing giant has a broad spread of customers, from startups to established companies. Over the last decade or so, Amazon has built up a base of over a million customers worldwide. In 2015, it announced the launch of Amazon Wind and Solar Farms in order to power its cloud data centers.

Amazon generates billions in revenue each quarter, and a portion of it comes from its Amazon Web Services (AWS) cloud segment. AWS provides computing power, database storage, content delivery and a number of other functionalities to assist business growth and scaling. Amazon stores information in its AWS data centers, which have security controls that include network firewalls, client-controlled encryption and real-time insight with security advisors.

2. Microsoft (NASDAQ:MSFT)

Market cap: US$1.58 trillion

The second top cloud security company in the world is Microsoft, which also receives billions in revenue each quarter from its intelligent cloud services division. Microsoft Azure, its cloud platform, provides services to Internet of Things systems in combination with chip design through Azure Sphere, while Azure Stack is a newly launched application that allows users to have their data analyzed in real time.

Microsoft is making its cloud systems compatible with open-source systems; it is also providing a host of artificial intelligence (AI) applications, including advanced data analytics, speech recognition and language translation through its Azure services.

When it comes to cloud security, Microsoft has a team of cybersecurity threat intelligence experts who have worked with government officials and policymakers. Microsoft leverages its security expertise and experience to create critical cloud infrastructure protections.

3. Alphabet (NASDAQ:GOOG)

Market cap: US$1.02 trillion

The Google Cloud Platform and G Suite are among the cloud services offered by Alphabet’s Google. Its G Suite services encompass enterprise applications such as Gmail, Google Docs and Google Drive, which were built on the backbone of its AI services.

The Google Cloud platform is a core driver of the company’s revenue, bringing in billions per quarter. “Customers are choosing Google Cloud to either lower their costs by improving operating efficiency, or to drive innovation through digital transformation,” Sundar Pichai, CEO of Google and Alphabet, has said.

In 2019, Google reported dozens of new security features related to its cloud applications. For example, Access Transparency is extending its cloud security services to the G Suite platform. Access Transparency logs the details of when Google employees interact with a user’s data. In addition, Google is launching a data loss prevention user interface, event threat detection beta, cloud security scanner and security health analytics features.

4. Alibaba Group (NYSE:BABA)

Market cap: US$671.11 billion

Alibaba Group launched its cloud services platform, Alibaba Cloud, in 2009. Today, Alibaba Cloud is a leading cloud service provider in China and fourth in the global market, supporting online businesses and Alibaba’s ecommerce ecosystem.

The company’s wide range of cloud-computing products and services include cloud security and management. In 2019, Alibaba Cloud’s sales grew by 62.4 percent to exceed US$4 billion, accounting for 9.1 percent of the global internet-as-a-service market.

The one concern with Alibaba Cloud’s position as a global cloud security solution provider is the tense political situation between China and the United States. “The catch with Alibaba Cloud is that US-based customers are likely to run into politics, data concerns, and trade wars, but it’s quite possible that Alibaba Cloud can jump the rankings based on revenue just because the Chinese cloud market will be massive,” according to ZDNet.

5. IBM (NASDAQ:IBM)

Market cap: US$113.2 billion

IBM’s cloud services are used by companies around the world, including Vodafone Idea (NSE:IDEA) in India and NexJ Systems (TSX:NXJ) in Canada. Central to the company’s future goals is transitioning enterprises onto the cloud in a way that suits them best, be that a private, public or hybrid cloud system.

IBM’s software-as-a-service security platform provides its users with real-time insight to detect endpoint security vulnerabilities and prevent threats. The platform helps customers use less infrastructure on security solutions, deploying them instead through the IBM Cloud and its cloud-computing security services. In addition, IBM Watson is transferable to the IBM Cloud, enabling businesses to apply its AI algorithms to given data sets at scale with agility.

In 2019, IBM acquired open-source enterprise software maker Red Hat for US$34 million in one of the biggest tech deals in the industry’s history. Red Hat was incorporated into IBM’s hybrid cloud division. Red Hat products have aided greatly in IBM’s ability to generate cloud revenue.

6. Dell Technologies (NYSE:DELL)

Market cap: US$45.8 billion

Dell Technologies is one of the leading providers of cloud data center servers around the globe. The top cloud security company also sells software through its Dell Technologies Cloud offering. Through its purchase of EMC in 2016, the company acquired an 81 percent stake in VMware (NYSE:VMW), which has key partnerships with AWS, Microsoft Azure and Google Cloud. VMware’s suite of tools allows companies to manage multiple clouds and on-premise infrastructure within one dashboard.

VMware is currently the foundation of Dell’s cloud management platform, but the company recently announced the potential spinoff of its majority stake in VMware sometime in September 2021.

7. Hewlett Packard Enterprise (NYSE:HPE)

Market cap: US$13.12 billion

Although its cloud capabilities are not on the same level as some of the other companies on this list, Hewlett Packard (HP) does have strategic partnerships with Red Hat, VMware and other cloud providers. “HP’s stated goal is to offer its entire portfolio as a service over time,” reported ZDNet.

HP touts itself as an “early mover” in edge-to-cloud computing alongside the rising growth in Internet of Things devices, which generate huge amounts of data for the cloud. The company’s Aruba Edge Service Platform is gaining traction in the rapidly growing software-defined wide area network (SD-WAN) sector.

In mid-2020, HP announced plans to acquire Silver Peak, an SD-WAN leader, for US$925 million.

8. Cisco Systems (NASDAQ:CSCO)

Market cap: US$201.53 billion

Cisco Systems has a large portfolio of multi-cloud products and applications alongside strong relationships with Azure, AWS and Google Cloud.

The prime thoroughbred in Cisco’s stable is Application Centric Infrastructure (ACI). “Cisco’s approach to multi-cloud is network-centric and ACI focuses on policy, management, and operations for applications deployed across cloud environments,” as per ZDNet.

In August 2020, Cisco completed the acquisition of internet monitoring solution provider ThousandEyes. Cisco plans to incorporate ThousandEyes’ cloud intelligence platform and monitoring capabilities into its existing core Enterprise Networking and Cloud, and AppDynamics portfolios.

“ThousandEyes enables organizations to visualize any network as if it was their own, quickly surface actionable insights, and collaborate and solve problems with service providers,” said Cisco.

9. Salesforce (NYSE:CRM)

Market cap: US$177.64 billion

Salesforce dominates the market in cloud computing and operates across many industrial verticals. One example of its cloud verticals is its software Commerce Cloud, which streamlines online shopping, bringing companies and customers closer together. Constantly updated inventory on various devices means shoppers do not have to find other stores to see if their item is there.

Salesforce focuses on cloud, mobile, social, Internet of Things and AI technologies as well. Its cloud services includes Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, Community Cloud, Analytics Cloud, AppExchange, Salesforce Quip and Salesforce Platform. Salesforce also has its website Salesforce Trust, which shows the security status of every Salesforce platform. Salesforce handles a great deal of delicate information, and data security is integral to its survival within its cloud environment.

10. Oracle (NYSE:ORCL)

Market cap: US$168.59 billion

Headquartered in Redwood City, California, Oracle’s cloud services constitute a major driver in its revenues. The Oracle Cloud has been deployed by a number of blue chip companies, including AT&T (NYSE:T); the company is moving scores of its data on the Oracle Cloud.

Recently, Oracle launched a new cloud service product called Dedicated Region Cloud@Customer, which allows for the integration of Oracle’s public cloud services into the customer’s on-premises data center to ensure a high level data security solution.

Oracle ASEAN Regional Managing Director Cherian Varghese said about this new product, “(It) expand(s) cloud adaptation opportunities for industries whose data is critical and highly regulated, such as banking, financial services, health care and the government. This is where Oracle finds a sweet spot because sometimes it is just the fundamentals of economics to not put some of that data outside of the customers’ premises or to the public cloud.”

This is an updated version of an article originally published by the Investing News Network in 2017.

Don’t forget to follow us @INN_Technology for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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