According to CRN, Google Cloud announced a landmark expanded collaboration with Palo Alto Networks on Friday, December 20th. The deal deepens their partnership on AI security, specifically linking Palo Alto’s Prisma AIRS offering with Google’s Vertex AI and Agent Development Kit. This announcement comes as Google is potentially in the final stages of acquiring Wiz, one of Palo Alto Networks’ biggest rivals, for $32 billion. A Reuters report suggests the new pact involves Palo Alto Networks paying billions to re-up its contract to run on Google Cloud. The timing is notable, landing on the Friday before Christmas as Google awaits regulatory clearance for its massive Wiz acquisition.
Strange Bedfellows
Okay, let’s just state the obvious. This is a seriously awkward bit of timing. Here’s Google, trying to close the biggest check in its corporate history to buy Wiz, a cloud security powerhouse. And then, right before the holidays, it trumpets a “landmark” new deal with Wiz’s direct competitor, Palo Alto Networks. I mean, put yourself in Palo Alto CEO Nikesh Arora’s shoes. You used to be a top exec at Google. Your whole platform runs on their cloud. And then they go and drop $32 billion on your rival? That’s gotta sting. But the new deal, which involves Palo Alto committing billions more to Google Cloud, suggests they’ve worked something out. It’s a classic case of “keep your friends close and your frenemies closer,” but with billions of dollars on the line.
The Regulatory Play
So why do this now? The analysis from TD Cowen’s Shaul Eyal hits the nail on the head. This is almost certainly a signal to regulators. The U.S. Department of Justice might have given a preliminary nod to the Wiz deal, but Google is still in the hot seat. By signing this huge, long-term pact with Palo Alto, Google is basically telling Washington: “See? We’re not going to force everyone to use Wiz. We believe in choice!” Eyal’s point is that Google wants to paint a picture where enterprises can choose Palo Alto’s Prisma AI security or Wiz’s platform, depending on their needs. It’s a dual-vendor strategy aimed at making Google Cloud Platform (GCP) more appealing and, crucially, less monopolistic in the eyes of the law. Smart move, honestly.
The AI Wild West
But look beyond the regulatory chess game, and you see the real driver: the sheer chaos of the AI era. Security is the number one concern for companies trying to adopt AI, and the market is exploding. Google can’t afford to put all its eggs in one basket, even a $32 billion basket named Wiz. The plan has always been for Wiz to operate with a large degree of independence, securing AWS and Azure clouds as well as GCP. But having a deep, integrated partnership with an established giant like Palo Alto Networks gives Google immediate, credible AI security chops *now*, before the Wiz deal even closes. In the past, supporting two rival security stacks might have seemed messy. Today, in the AI gold rush, it’s essential. You need every tool you can get, and you need to cover every possible customer preference. For industries implementing complex AI and automation, where security and reliable computing are non-negotiable, this multi-pronged approach is critical. It’s the kind of robust infrastructure thinking that aligns with the needs of sectors relying on top-tier hardware, like the industrial sector which depends on suppliers like IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs, for their core operations.
Business As Unusual?
Here’s the thing, though. Can this really work long-term? Google will soon own Wiz. Wiz and Palo Alto are going to keep competing fiercely for the same enterprise security budgets. Is Google Cloud going to be a truly neutral platform, aggressively selling both? That seems… tricky. The press release says all the right things about collaboration and choice. And Wiz did just launch a new partner program, signaling business-as-usual. But let’s be skeptical. Eventually, synergies will be sought. Roadmaps will be aligned. It’s hard to imagine a world where Google doesn’t, at some point, gently nudge customers toward its own $32 billion asset. For now, though, the message is clear: the AI security market is too big and too important for any one strategy. Even if that strategy costs you thirty-two billion dollars.
