Zscaler Extends Zero Trust SASE Leadership and Eliminates the Need for Firewall-Based Segmentation
- The acquisition of Airgap Networks will strengthen Zscaler's position in cloud security.
- Combining Zscaler's Zero Trust SD-WAN with Airgap Networks' technology will improve security for enterprises' internal networks and critical OT infrastructure.
- Airgap Networks' innovative approach using DHCP proxy architecture will enhance device isolation and access control based on identity and context.
- Customers will benefit from reduced business risk, improved security posture, and operational simplicity with cost savings.
- Zscaler aims to disrupt traditional security solutions for east-west and OT networks with significant innovation in Zero Trust Networking.
- None.
Insights
The acquisition of Airgap Networks by Zscaler represents a strategic move in the cybersecurity industry, aiming to enhance the protection of intra-organizational traffic, commonly referred to as east-west traffic. This is particularly significant given the increasing sophistication of cyber threats that are capable of moving laterally within a network to exploit vulnerabilities in business-critical networks.
From a business perspective, the integration of Zero Trust SD-WAN with agentless segmentation technology is a forward-thinking approach that addresses the limitations of traditional network security measures. The traditional Network Access Control (NAC) and firewall methods have shown to be less effective against modern, advanced threats, which often bypass static Access Control Lists (ACLs). The dynamic nature of Airgap Networks' solution, with its capability to isolate devices and control access based on identity and context, is poised to offer a more adaptive and responsive security framework that aligns with the Zero Trust model of 'never trust, always verify.'
For enterprises, particularly those with critical Operational Technology (OT) infrastructure, the potential cost savings and operational simplification could be substantial. By eliminating the need for traditional east-west firewalls and outdated security technologies, businesses could see a reduction in both capital and operational expenses, while simultaneously improving their security posture.
From a financial standpoint, Zscaler's strategic acquisition of Airgap Networks could be viewed as an investment in expanding its product offerings and addressing a broader market need. The focus on securing IoT/OT devices and critical infrastructure is a response to a growing segment within cybersecurity, driven by the proliferation of connected devices and the increasing frequency and severity of ransomware attacks.
While the terms of the deal were not disclosed, the market will likely scrutinize the acquisition's impact on Zscaler's financial health. Key considerations will include the cost of the acquisition, the integration process and the potential for new revenue streams. The market will also assess the potential for Zscaler to leverage Airgap Networks' technology to gain a competitive edge in the Secure Access Service Edge (SASE) market, which is rapidly evolving with a clear demand for integrated, cloud-native security solutions.
The announcement could influence investor sentiment and Zscaler's stock performance, as it signals the company's commitment to innovation and growth within the cybersecurity sector. However, the true financial impact will depend on the execution of the integration and the market's reception of the enhanced product offerings.
In the realm of IT infrastructure, the acquisition's focus on securing east-west traffic is a critical development. East-west traffic, which refers to the communication between devices within the same network, has become increasingly important as enterprises adopt decentralized architectures and cloud services. The traditional perimeter-based security model is becoming obsolete in such environments, making the Zero Trust approach more relevant.
The operational benefits of Airgap Networks' agentless segmentation technology could be transformative. Agentless solutions are particularly advantageous in environments with IoT and OT devices that may not support traditional security agents. By providing real-time device discovery and inline enforcement, Airgap's technology could significantly streamline security management for IT departments.
Moreover, the concept of a 'ransomware kill switch' that Airgap Networks brings to the table could be a game-changer for businesses facing the threat of ransomware. The ability to instantly disable non-essential device communications to prevent lateral threat movement, without disrupting operations, is a compelling value proposition for any organization looking to bolster its cybersecurity defenses.
Acquisition of Airgap Networks will extend Zscaler’s Zero Trust Exchange to protect east-west traffic in branches, campuses, and critical OT infrastructure
SAN JOSE, April 11, 2024 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today announced they have signed an agreement to acquire Airgap Networks, the leader in cybersecurity solutions for business-critical networks. Combining Zscaler’s Zero Trust SD-WAN and Airgap Networks’ agentless segmentation technology will transform how enterprises implement Zero Trust Segmentation to IoT/OT devices, and critical infrastructure across branches, campuses, factories, and data centers, including east-west connectivity.
Traditional NAC and network-based firewalls that use static Access Control Lists (ACLs) to control east-west traffic were not designed to prevent sophisticated threats from moving laterally within a Local Area Network (LAN). Airgap Networks’ novel approach, using an intelligent Dynamic Host Configuration Protocol (DHCP) proxy architecture, isolates every device and dynamically controls access based on identity and context, reducing business risk for enterprises with critical infrastructure.
Customers will benefit in the following ways:
- Extending Zero Trust to Devices on Internal Networks - Airgap Networks’ technology enforces Zero Trust principles across east-west (LAN) device traffic, shrinking the internal attack surface to help eliminate lateral threat movement on campus and OT networks.
- Securing Critical OT Infrastructure - Airgap Networks’ technology delivers real-time device discovery and inline enforcement. It acts as a ransomware kill switch, disabling non-essential device communications to halt lateral threat movement without interrupting business operations. Airgap Networks’ solution neutralizes advanced threats, such as ransomware on IoT devices, OT systems, and agent-incapable devices.
- Delivering Operational Simplicity and Cost Savings - Airgap Networks’ solution eliminates the need for risk-prone east-west firewalls and antiquated security technologies, such as Network Access Control (NAC), with the ability to identify and control all traffic from managed and unmanaged devices on any branch, campus or factory network without requiring changes to the existing switching and routing infrastructure. This dramatically improves enterprises’ security posture as traditional approaches using NAC fundamentally contradict the foundational principle of Zero Trust – “never trust, always verify.”
“Together, Zscaler and Airgap Networks have the opportunity to reimagine every aspect of how traditional solutions have approached security in campus and data center environments, particularly east-west,” said Naresh Kumar, Vice President and General Manager of Product Management, Zscaler. “Zscaler is doubling down on SASE with significant innovation around Zero Trust Networking, disrupting SD-WAN, NAC, and firewall-based security for east-west and OT networks.”
For more information, see “Zscaler Acquires Airgap Networks.”
The terms of the deal were not disclosed.
Forward-Looking Statements
This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. These forward-looking statements include the expected benefits of the acquisition to Zscaler’s product offerings and to our customers. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to our ability to successfully integrate Airgap Networks technology and operations, and our ability to retain key employees of Airgap Networks after the acquisition. Additional risks and uncertainties are set forth in our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on March 6, 2024, which is available on our website at ir.zscaler.com and on the SEC's website at www.sec.gov. Any forward-looking statements in this release are based on the limited information currently available to Zscaler as of the date hereof, which is subject to change, and Zscaler will not necessarily update the information, even if new information becomes available in the future.
About Zscaler
Zscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 150 data centers globally, the SASE-based Zero Trust Exchange is the world’s largest in-line cloud security platform.
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Media Contact
Natalia Wodecki
press@zscaler.com
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