Fortinet (FTNT - Free Report) recently announced that its cloud security solutions have been adopted by Nubank to create a strong cybersecurity IT environment to boost growth.
Nubank — a Latin American fintech company — selected Fortinet’s Security Fabric solutions, including FortiGate, FortiSwitch, FortiAP and FortiGate-VM to address its network protection requirements.
Moreover, Fortinet’s solutions will provide integrated security with Amazon’s (AMZN - Free Report) AWS cloud environment.
Growing Adoption of Cloud Security Solutions
Fortinet’s Security Fabric is gaining strong traction among enterprises. Recently, it announced that its multi-cloud security offerings have been adopted by Aspire Global, MediaKind, and MLP Finanzberatung SE to improve their cloud environments with secure connectivity and consistent visibility and control.
Further, the company announced three more key customers in its Fabric-Ready Partner program, which already includes AWS and Nozomi Networks — RAD, Indegy and SecurityMatters. This will enhance the security solutions available to operational technology customers through the Fortinet Security Fabric.
As enterprises are transitioning their workloads to the cloud, they are becoming increasingly aware of the security gaps that may arise in a multi-cloud environment and their implications on business.
Transition of workloads to the cloud has several concerns — the most important being security issues. In such an environment, complexities of using different security solutions are best avoided.
Per Gartner, 50% of enterprises will unknowingly directly expose some of their IaaS storage services, network segments, applications or APIs to public by 2021, up from 25% in 2018. This projection reflects the dire need of strong multi-cloud security offerings, which will cover all security gaps.
This is leading more and more companies to adopt trusted solutions to secure their infrastructure.
Competition a Concern
Fortinet faces competition from numerous players in the security application market. In the multi-cloud security space, Fortinet’s most notable rivals are Palo Alto (PANW - Free Report) and Cisco (CSCO - Free Report) .
Palo Alto recently revealed its intent to acquire container security company Twistlock, and serverless security firm PureSec, to better protect customers’ journey to the cloud. The company also introduced its comprehensive cloud security suite, Prisma. These proposed buyouts are expected to further boost its cloud security suite.
Cisco’s cloud security solutions are also gaining significant momentum due to various efforts to boost business. Notably, in October last year, Cisco acquired Duo Security to enhance its cloud security portfolio.
However, we believe that Fortinet’s robust steps to maintain stronghold in the cybersecurity market position it comfortably amid intense competition.
Fortinet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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