Akamai Technologies Inc. today said that it has inked a $600 million deal to acquire Guardicore Ltd., a Tel Aviv-based startup with a microsegmentation platform for securing corporate networks. 

Microsegmentation is a popular approach to limiting the impact of cyberattacks. Often, data breaches begin with a single compromised application. Hackers use the compromised application to spread malware to other workloads on the corporate network in a process known as lateral movement. Microsegmentation blocks lateral movement by isolating workloads from one another, which prevents hackers from using a breached system to target other information technology assets on the same network. 

In practice, workloads are usually isolated from one another only to a limited degree. That’s because many business applications can’t operate without the ability to share information with other systems on the network. A sales forecasting tool, for example, might require the ability to access revenue figures from the accounting database.

Enterprises implement microsegmentation by permitting applications to interact with another only if they strictly require the ability to exchange information. The way, the sales forecasting tool is allowed to access the accounting database but can’t pull records from other systems. Determining which applications should be allowed to exchange data and which shouldn’t is key to effectively implementing microsegmentation.

The challenge Guardicore’s platform eases is that implementing microsegmentation rules can be highly complicated in large companies. An enterprise may have hundreds of applications that interact in thousands of different ways. Administrators must isolate applications where possible, but still enable workloads to exchange data when necessary. 

Guardicore’s platform automates much of the process. It analyzes data traffic between a company’s applications to identify which workloads require the ability to exchange information with one another and which don’t. According to Guardicore, the insights generated by its platform allow administrators to quickly find applications that can be isolated from one another without disrupting business operations.

To reduce manual work, the startup uses AI to automatically generate suggestions on how to best implement microsegmentation rules. Another selling point is that the platform doubles as a threat detection mechanism. While Guardicore analyzes the data traffic in a company’s network to identify microsegmentation opportunities, it also looks for malicious connection attempts.

The acquisition of Guardicore will enable Akamai to expand its portfolio of zero-trust security products. Zero-trust security is a set of best practices for protecting enterprise applications that places an emphasis on, among others, limiting lateral movement risks. Guardicore’s technology, which prevents lateral movement by blocking hackers’ ability to jump between systems in a corporate network, is a valuable addition to Akamai’s feature set.

Another notable aspect of the acquisition is that it could allow Akamai to more directly compete with traditional firewall providers. Firewalls are often used to implement microsegmentation policies. Guardicore positions its platform as a simpler alternative to firewalls, which means that the deal will enable Akamai to give enterprise customers more ways of implementing micro-segmentation in their networks.

“Given the recent surge in ransomware attacks and increasingly stringent compliance regulations, investing in technologies to reduce the spread of malware has become mission-critical,” said Akamai co-founder and Chief Executive Officer Tom Leighton. “By adding Guardicore’s leading microsegmentation products to Akamai’s comprehensive portfolio of zero trust solutions, we believe Akamai will be able to provide the most effective way to combat ransomware on the market today.”

The Guardicore leadership team will join Akamai as part of the deal. Guardicore’s microsegmentation software will continue to be available to customers, along with support services, and the startup has committed to doubling down on research and development.

Akamai expects to complete the transaction by year’s end. The company estimates that Guardicore will add revenue of between $30 million and $35 million to its top line in 2022. Akamai also disclosed that it expects its adjusted operating margin to range from 29% to 30% next year.

Prior to the acquisition, Guardicore raised about $106 million in funding from investors. 

Image: Akamai