Dynatrace to Acquire Runecast to Enhance Cloud-Native Security and Compliance
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Insights
With the acquisition of Runecast, a significant player in the cybersecurity landscape, Dynatrace enhances its capabilities in the realm of automated security posture management and compliance monitoring. This strategic move addresses the growing need for integrated security solutions in complex hybrid and multicloud environments. The addition of AI-driven, real-time vulnerability assessments is a key differentiator, enabling organizations to proactively tackle misconfigurations and compliance violations, thus reducing potential attack vectors.
Furthermore, this acquisition is indicative of a broader industry trend where observability platforms are converging with security solutions to offer a more holistic approach to cloud-native application protection. This trend is a direct response to the increased sophistication of cyber threats and the recognition that security cannot be siloed from other IT operations. The integration of Runecast's technology into Dynatrace's platform promises to provide customers with a more comprehensive CNAPP, addressing the critical aspects of security and compliance within their digital infrastructure.
The financial implications of Dynatrace's acquisition of Runecast are noteworthy, despite the statement that it will not have a material impact on Dynatrace's financial results. Investors should consider the long-term benefits of enhanced product offerings and potential market share growth in the cybersecurity sector. By bolstering its security posture management and compliance capabilities, Dynatrace may increase its appeal to enterprises seeking to secure their cloud-native applications, potentially leading to revenue growth.
It is also important to evaluate the acquisition within the context of Dynatrace's overall growth strategy and its ability to compete with other major players in the market. The move may signal Dynatrace's commitment to innovation and leadership in the observability and application security space, which could be a positive indicator for future financial performance and stock valuation.
The demand for cloud-native application protection platforms is on the rise, driven by the increasing adoption of cloud services and the complexity of securing modern IT infrastructure. Dynatrace's acquisition of Runecast positions the company to capitalize on this demand by expanding its product portfolio to include advanced security analytics and automation. This move may influence market dynamics by setting a new standard for integrated observability and security platforms.
Competitive analysis should be conducted to assess how Dynatrace's enhanced offerings will stand against rivals and whether this acquisition will disrupt the current market landscape. The ability to offer end-to-end protection, detection and response with a unified platform is becoming a competitive necessity and Dynatrace's expansion in this direction could potentially alter customer expectations and demand patterns within the cybersecurity market.
Expansion of the unified Dynatrace observability and security platform will deliver automated security posture management and compliance monitoring for hybrid and multicloud environments
Cloud-native technologies have revolutionized business, but they have also made security more complex. Organizations face challenges integrating existing security analytics tools and eliminating security gaps in applications. They need a unified, context-rich approach for observability, security, and compliance to safeguard workloads and applications throughout the software delivery lifecycle. By adding Runecast, Dynatrace will expand its platform’s cloud-native application security protection capabilities and help customers achieve these goals.
“Security posture management is a well-known and vital market, because every organization needs it and has prioritized it in their technology investments for improved security,” said Bernd Greifeneder, CTO at Dynatrace. “We believe Dynatrace is differentiated in this market as the only platform leveraging contextual observability and security analytics for cloud-native applications to provide end-to-end protection, detection, and response. Dynatrace enables users to not only identify and analyze vulnerabilities and threats automatically but also to measure and improve risk exposure and compliance status and perform advanced security analytics and automation. Runecast’s technology will enhance this advantage, elevating our runtime vulnerability analytics and protection and helping our customers to keep their clouds audit ready all the time. We look forward to welcoming Runecast to the platform and the team to Dynatrace.”
“At Runecast, we aim to provide organizations with real-time, automated, and actionable insights for security compliance, vulnerability assessment, and configuration management of their hybrid and multicloud environments,” said Stanimir Markov, CEO at Runecast. “We are excited to join Dynatrace, the leader in observability and application security, to deliver a comprehensive Cloud-Native Application Protection Platform (CNAPP) that addresses two critical questions for our customers: ‘How secure are we?’ and ‘How compliant are we?’”
Dynatrace plans to provide a seamless experience for customers by embedding Runecast into its unified observability and security platform.
Closing of the proposed transaction is subject to customary closing conditions and is expected to occur later in Dynatrace’s fourth quarter, which ends on March 31, 2024. The proposed transaction will not have a material impact on Dynatrace’s financial results.
About Dynatrace
Dynatrace (NYSE: DT) exists to make the world’s software work perfectly. Our unified platform combines broad and deep observability and continuous runtime application security with the most advanced AI to provide answers and intelligent automation from data at an enormous scale. This enables innovators to modernize and automate cloud operations, deliver software faster and more securely, and ensure flawless digital experiences. That’s why the world’s largest organizations trust the Dynatrace® platform to accelerate digital transformation.
Curious to see how you can simplify your cloud and maximize the impact of your digital teams? Let us show you. Sign up for a 15-day Dynatrace trial.
Cautionary Language Concerning Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated benefits of the Runecast acquisition, the expected time for closing of the proposed acquisition, the impact of the proposed acquisition on Dynatrace’s fiscal year 2024 financials, and the source of funding of the transaction. These forward-looking statements include all statements that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies, and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies, and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including the risks set forth under the caption “Risk Factors” in our Quarterly Report on Form 10-Q filed on November 2, 2023, and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events, or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240129774606/en/
Investor Contact:
Noelle Faris
VP, Investor Relations
Noelle.Faris@dynatrace.com
Media Relations:
Jerome Stewart
VP, Communications
Jerome.Stewart@dynatrace.com
Source: Dynatrace
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