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 security is not only a hot commodity, but a necessary one — particularly when it comes to businesses increasing the adoption of cloud-managed services.
To that end, analysts at Gartner project that cloud-based security services will be worth up to $9 billion by 2020. Similarly, Grand View Research estimates that the overall global cloud-managed services market will reach $82.51 billion by 2025, as “the need to focus on core business practices has increased the adoption of cloud managed services.”
According to the Grand View Research report, those services include 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 market cap. These companies are listed in alphabetical order, and information was current as of September 21, 2018.
1. Amazon (NASDAQ:AMZN)
Market cap: US$941.56 billion; current share price: US$1,930.46
First on this cloud security companies list is none other than Amazon. This US ecommerce and cloud computing giant has a broad spread of customers, from startups to established companies. Amazon Web Services (AWS) is its cloud security platform, and 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.
AWS provides computing power, database storage, content delivery and a number of other functionalities to assist business growth and scaling.
2. Blue Coat Systems (acquired by Symantec (NASDAQ:SYMC))
Market cap: US$13.04 billion; current share price: US$20.98
Blue Coat Systems was acquired by Symantec in August 2016, and is another US-based cloud security company that provides networking and security solutions. Blue Coat’s cloud-delivered web security service combines Symantec’s web and security partnership with 15,000 large companies across the globe, the majority of which are Fortune 500 listees. Respected analysts like Gartner recognize Symantec as a leader in cybersecurity. Symantec is featured in the NASDAQ CTA Cybersecurity Index.
3. CA Technologies (NASDAQ:CA)
Market cap: US$18.41 billion; current share price: US$44.02
Next on this list of cloud security companies is CA Technologies. It is a software company that leads customers through the cloud process. It is unique for its hybrid cloud solution, which differs from on-premises private or third-party public clouds. Its featured solutions include advanced analytics, agile management, automation, cloud solutions, continuous delivery, DevOps, IT operations management, mainframe, microservices and security.
4. CenturyLink (NYSE:CTL)
Market cap: US$24.73 billion; current share price: US$22.90
CenturyLink delivers effective, safe, trusted clouds for any scale and workload. It operates a multi-layered security system that can ward off outages and cope with today’s demand for readily available information 24/7.
5. McAfee (acquired by Intel (NASDAQ:INTC))
Market cap: US$214.87 billion; current share price: US$46.60
McAfee was acquired by Intel back in 2010, but in 2017 became a standalone cybersecurity company. Intel holds a 49-percent equity interest in the independent McAfee.
McAfee creates business and consumer solutions, ensuring businesses orchestrate cyber environments “that are truly integrated.” It also works on simultaneous protection, detection and correction of threats.
6. Proofpoint (NASDAQ:PFPT)
Market cap: US$5.43 billion; current share price: US$105.91
Next on this cloud security companies list is a US-based cybersecurity company that has branched out into securing social media sites and assessing individual threat exposure from a person’s devices. The company seeks to protect against cybercrimes that attack people by exposing points of entry for hackers and making potential threats visible.
More specifically, its security-as-a-service platform includes an integrated suite of on-demand data protection solutions, such as threat protection, incident response, regulatory compliance, archiving, governance, eDiscovery and secure communication.
7. Salesforce (NYSE:CRM)
Market cap: US$118.10 billion; current share price: US$156.07
Salesforce dominates the market in cloud computing and operates across many industrial verticals. One example of this is Salesforce chasing Amazon in the digital commerce market. Its software Commerce Cloud 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, while its cloud services includes Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, Community Cloud, Analytics Cloud, 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.
8. Sophos (LSE:SOPH)
Market cap: GB 2.81 billion; current share price: GB 468.40
Next on this list is Sophos. It is another player in the cybersecurity market and is headquartered in the UK. It launched Security Heartbeat, which synchronizes security alerts from firewalls to endpoints; it is a simple but vital messaging system that enables fast detection in the event of a breach.
One of the firm’s primary products, Sophos Mobile Control 6, includes Sophos Secure Email, an information management container solution for personal email, calendar and contacts. Sophos Server Protection Advanced integrates server applications to deliver single-click server lockdowns.
9. Trend Micro (TSE:4704)
Market cap: JPY 983.45 billion; current share price: JPY 7,010.00
Trend Micro is involved in the development and sale of security-based software for computers and for the internet, with a focus on server security, cloud security and small business content security.
The company provides its software to consumers, businesses and governments in Japan, North America, Europe, Asia Pacific and Latin America.
10. Verizon (NYSE:VZ)
Market cap: US$225.62 billion; current share price: US$54.60
Closing out this top cloud security companies list is Verizon. Verizon is a telecommunications company that has taken advantage of its technological resources to apply its cloud programs to those who need them most. A pioneer in the medical care sector, Verizon uploaded abnormal test results to a Verizon cloud program and created a cloud-based solution for diagnosis and examination by experts. This is particularly pertinent tech for rural areas that are largely inaccessible to doctors.
The company suffered multiple security breaches in 2017, with up to 14 million US customer accounts exposed in September, and up to 6 million users leaked in July of that year. Needless to say this was detrimental to the stock, but it has since recovered.
Which of these cloud security companies do you think is the most auspicious, and why? Let us know in the comments below.
This is an updated version of an article originally published by the Investing News Network in 2017.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.