Why Google’s $33B Wiz deal is a bold strike in the cloud security war

March 2025 will go down as a major milestone in Google’s history. The digital tech giant is set to acquire cloud security startup Wiz for a staggering $33 billion—not only the largest-ever deal in Google’s history but also the biggest exit the cybersecurity industry has ever seen.

In an interaction with Fortune India, Jason Saltzman, Head of Insights at CB Insights, notes that the deal represents more than just a bold M&A move. “This is the highest exit valuation ever—M&A or IPO—for a cybersecurity company, topping Splunk’s $28B acquisition by Cisco,” he explains. The acquisition represents a 50–65x revenue multiple based on Wiz’s ARR at the time—one of the highest multiples in major software acquisitions.

To put that number in perspective, Google’s second-largest acquisition was Motorola Mobility, purchased for $12.5 billion in 2012. That deal was meant to mark Google’s leap into the mobile hardware space—but within two years, it offloaded Motorola at a steep loss. The Wiz acquisition is 2.4x larger, and this time, it’s not about hardware—it’s about cementing Google’s place in cloud security.

Wiz, a fast-growing player in cloud infrastructure protection, is Google’s biggest bet yet in the fight for cloud dominance. With Microsoft and AWS already deeply entrenched in the enterprise cloud space, Google’s move signals an aggressive strategy to differentiate through security.

As Saltzman points out, “This instantly transforms Google into a major player in cloud security, particularly in Cloud Security Posture Management (CSPM) and Cloud Native Application Protection Platforms (CNAPP). It challenges Microsoft’s momentum in security—especially given the success of its Defender product line—and it may prompt AWS and others to respond with deals of their own.”

This isn’t just about market optics—it’s a real shift in position. “Google gains immediate market share and credibility in a critical segment. The move will also intensify pressure on specialised security startups, potentially triggering further consolidation in the space,” Saltzman adds.

Looking back, Google’s M&A activity has closely tracked the evolution of the tech landscape. In the mid-2000s, it was all about adtech, with landmark acquisitions such as YouTube ($1.7 billion in 2006) and DoubleClick ($3.1 billion in 2007). The early 2010s saw a pivot to mobile and hardware—most notably Motorola and Nest ($3.2 billion in 2014). Then came a steady march toward cloud and enterprise software, with Looker ($2.6 billion) and Mandiant ($5.4 billion) setting the stage for Google’s next act.

“Wiz’s cloud-native platform addresses urgent needs for enterprises operating in multi-cloud environments,” Saltzman explains. It also helps shore up Google Cloud’s position as the No. 3 player in the market, trailing AWS and Microsoft. “More importantly, Wiz had already built strong strategic partnerships—including Check Point, Expel, and Cribl—that strengthened its overall value proposition,” he adds.

For late-stage cybersecurity startups, the implications are clear. According to CB Insights data, cybersecurity startups that have raised over $100M have a 19% average probability of M&A within the next two years. “Currently, 54 companies have an M&A probability over 25%,” Saltzman says. “The Wiz acquisition could be the spark that accelerates exit activity in the space.”

So, is this the end of Google’s big-ticket shopping spree? Not quite. Saltzman says, “Google will likely continue pursuing strategic acquisitions across AI, cloud infrastructure, and enterprise software, though perhaps not immediately at the scale of the Wiz deal.”

In total, Google has made over 270 acquisitions in its lifetime. But nearly half of the $65 billion spent on its top 10 deals went into this one transaction. That’s a clear signal of where it’s headed—and how seriously it’s taking the battle for cloud supremacy.

With Wiz now in its corner, Google isn’t just expanding its cloud portfolio. It’s making one thing very clear: security will be at the heart of everything it builds moving forward.