Palo Alto Networks (PANW - Free Report) recently announced new enhancements to the comprehensive secure access service edge (SASE) platform, namely Prisma Access.
These include cloud-delivered software-defined wide area network (SD-WAN) and data loss prevention (DLP) capabilities.
These upgrades will extend the company’s comprehensive cloud security strategy, Prisma, and enhance its capabilities to provide end-to-end protection for modern applications. This, in turn, will safeguard clients’ journey to the cloud in a much better fashion.
Prisma: Key Growth Factor
The Prisma platform brings all Palo Alto’s cloud security solutions under one umbrella, in a bid to address the need for comprehensive and end-to-end security solutions. This will allow enterprises to better focus on business growth without worrying about security gaps in the system.
Prisma Access, which delivers end-to-end networking and security services from a globally distributed cloud platform, has been supplementing growth of several client companies with consistent delivery of comprehensive networking and security services. These services include IPsec VPN, SSL VPN, cloud-delivered malware analysis, DNS Security and URL filtering capabilities.
Palo Alto has been taking strong steps to fortify this growth-driving platform. Moreover, its recent acquisitions of PureSec and Twistlock — both of which are being integrated into Prisma cloud — are expected to bolster the platform.
Bright Prospects of SASE Model
With the announcement of new SD-WAN features and the DLP service, Palo Alto Networks is also extending its powerful SASE capabilities.
SASE has recently been named by Gartner as one of the most promising emerging technology in enterprise networking. The relatively new technology is still in a nascent stage, with less than 1% adoption. This means that it has the opportunity to grow significantly.
Moreover, Gartner predicts that the SASE technology will see strong adoption over the next 10 years. This adoption is likely to be driven by an ongoing architectural transformation of traditional data center-centric networking and security to better cater to current mobile workforce, as well as achieve high adoption of cloud technology.
Notably, this architectural transformation is a threat to traditional network and security models. The emerging SASE model converges networking and security in the cloud, which is beyond the capacity of traditional models.
Gartner says, "Enterprise demand for cloud-based SASE capabilities, and market competition and consolidation, will redefine enterprise network and network security architectures and reshape the competitive landscape."
Palo Alto’s aggressive growth tactics are noteworthy. With back-to-back acquisitions and product launches, the company is leaving no stone unturned to maintain its leading position in the security market.
Moreover, Palo Alto’s belief that its addressable market will be worth $24 billion by 2020 compared with $19 billion in 2017 is encouraging it to move forward in the cybersecurity market. Its efforts are leading to consistent expansion of customer base and revenue growth. In the last reported quarter, revenues of $805.8 million increased 22% year over year.
Zacks Rank and Key Picks
Palo Alto currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Alteryx, Inc. (AYX - Free Report) , Perficient, Inc. (PRFT - Free Report) and Fortinet, Inc. (FTNT - Free Report) . All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Alteryx, Perficient and Fortinet is currently pegged at 39.9%, 11.6% and 14%, respectively.
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