With the cloud-based security services sector poised to reach $9 billion by 2020, here’s a look at the 10 top cloud security companies.
Cloud-based security is not only a hot commodity, but a necessary one — particularly when it comes to businesses increasing the adoption of cloud service providers.
To that end, Grand View Research estimates that the overall global cloud-managed services market will reach US$82.51 billion by 2025. “The need to focus on core business practices has increased the adoption of cloud managed services,” the report states.
According to the report, the category includes business services, network services, security services, data center services and mobility services. With the industry poised for substantial growth, here’s a look at the 10 top cloud security companies by revenue according to ZDNet. All data and information was current as of market close July 26, 2019.
1. Microsoft (NASDAQ:MSFT)
Market cap: US$1.08 trillion; current share price: US$141.34
The leading cloud technology company in the world is Microsoft, which reported US$32.2 billion in its intelligent cloud service revenue in 2018. Microsoft Azure, its cloud platform, provides services to IoT systems in combination with chip design through Azure Sphere, while Azure Stack is a newly launched application that allows its users to have their data analyzed in real-time.
Microsoft is making its cloud systems compatible with open-sourced 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. Leveraging its security expertise and experience, Microsoft applies this to create critical cloud infrastructure protections.
2. Amazon (NASDAQ:AMZN)
Market cap: US$959.87 billion; current share price: US$1,943.05
This US ecommerce and cloud computing giant has a broad spread of customers, from startups to established companies. Over the last decade or so, the company has built up a base of over a million customers worldwide. In 2015, Amazon announced the launch of Amazon Wind and Solar Farms in order to power its cloud data centers.
In 2018, Amazon generated US$25.7 billion from its Amazon Web Services (AWS) cloud revenue service. AWS provides computing power, database storage, content delivery and a number of other functionalities to assist business growth and scaling. Amazon stores data in its AWS data centers, which have security features that include network firewalls, client-controlled encryption and real-time insight with its security advisors.
3. IBM (NASDAQ:IBM)
Market cap: US$134.2 billion; current share price: US$151.36
Generating over US$19.2 billion in revenue, 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.
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.
IBM’s software-as-a-service (SaaS) 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.
4. Salesforce (NYSE:CRM)
Market cap: US$124.6 billion; current share price: US$159.97
Salesforce dominates the market in cloud computing and operates across many industrial verticals. In 2018, total revenue derived from its cloud services platform was US$13 billion. One example of its cloud verticals is its software Commerce Cloud, which streamlines online shopping, bringing companies and customers closer together with the aim of making the world smaller. 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 artificial intelligence 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 has a great deal of delicate information, and data security is integral to its survival within its cloud environments.
5. Accenture (NYSE:ACN)
Market cap: US$125.6 billion; current share price: US$196.93
With over US$9 billion in cloud revenue, Accenture offers infrastructure and cloud services for businesses. Its platform enables enterprises migrating onto a public cloud or hybrid cloud to operate at an optimized level. Accenture’s cloud services provide industry analytics, service desk management and monitoring solutions.
Through a number of partnerships with Microsoft, Salesforce and Workday (NASDAQ:WDAY), Accenture further helps businesses improve their IT architecture while integrating a wide array of AI applications.
The Accenture cloud security products specifically address cybersecurity strategy for businesses, providing a comprehensive overview of tools, architecture and threat protection, which helps with the data migration process.
6. Oracle (NYSE:ORCL)
Market cap: US$195.15 billion; current share price: US$58.50
Headquartered in Redwood City, California, Oracle’s cloud services constitute a major driver in its revenues, as it generated US$6.8 billion of its US$11.25 billion total revenues in 2018 from its cloud services.
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. Oracle’s cloud services help companies with sensitive data and mission critical applications using its database. This is deployed through automatic “self-patching” updates, security solutions, identity management solutions and the integration of its AI applications.
7. SAP (NYSE:SAP)
Market cap: US$156.01 billion; current share price: US$126.99
SAP, an enterprise software solutions company, is principally engaged in utilizing data through its cloud platform. Its cloud subscription models provide recurring revenue streams, often in addition to its cloud support services and cloud licensing. Together, SAP derived US$5.6 billion in fiscal 2018 from its cloud services.
When you take a closer look at SAP’s cloud platform, it illustrates its ability to help businesses innovate in the cloud with predictive analytics. SAP looks carefully at how companies can personalize its IT systems to drive higher customer engagement. SAP owns a number of data centres that are monitored 24/7 by security staff in addition to motion sensors and surveillance cameras. The company says that its security platform and architecture are top-tier level in the industry.
8. Alphabet (NASDAQ:GOOG)
Market cap: US$867.85 billion; current share price: US$1,250.41
The Google Cloud Platform and G Suite are among the cloud services offered by Alphabet’s Google. Its Google Cloud platform is a core driver in revenue, where a significant share of its US$4.9 billion in ‘other revenues’ was derived from its cloud services. “Google was a company built in the cloud and has been investing in infrastructure, security, data management, analytics, and AI from the very beginning,” the company reported in a 10-K filing.
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.
In 2019 thus far, Google has reported 30 new security announcements when it came 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.
9. Workday (NASDAQ:WDAY)
Market cap: US$48.79 billion; current share price: US$215.89
Workday is a cloud application company focused on the finance and human resources industries. With US$2.8 billion in revenue from cloud service revenues in 2018, Workday helps companies manage their resources. Synthesizing vast data sets, Workday assists in decision making processes through its data analytics and insight.
Specifically, Workday’s cloud services help finance and HR departments create modelling capabilities that are applicable business-wide. To remain competitive and up-to-date, Workday provides regular updates to its functionality systems. Workday’s cloud security solutions adhere to global security compliance measures while allowing its clients flexibility to whichever compliance regulation is necessary. Advanced threat detection is deployed by multi-layer biometric and two-factor authentication.
10. ServiceNow (NYSE:NOW)
Market cap: US$53.68 billion; current share price: US$289.33
The final company on our list is California-based ServiceNow. Raking in US$2.6 billion in cloud revenue in 2018, ServiceNow is a cloud-computing and digital workflow company that offers its Now Platform. Applied through a SaaS model, the Now Platform enables enterprises to use it with independence and flexibility.
With core business segments such as its IT Asset Management and Security Operations, ServiceNow provides governance services and comprehensive HR service delivery related to cloud management. The scale of its cloud security features includes encryption support, system logs for warnings, web service security and login authentication security.
This is an updated version of an article originally published by the Investing News Network in 2017.
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Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.