Deloitte Joins Cloud Cybersecurity Craze with CloudQuest Purchase

Organizations require cloud cybersecurity just as much as they do network and application defenses. Without a doubt, the need for cloud safeguards has soared amid all the COVID-19-fueled deployments. And now, after a year of frantic implementations, end users are assessing the strength of their cloud security.

So are the providers and channel partners responsible for protecting those environments. As research firm Omdia – which shares its parent company, Informa, with Channel Futures – noted in a report last June, “if you want to be relevant in cloud security, it’s a good time to buy into it.”

Vendors have heeded that advice over the past 12 months, particularly when it comes to cloud security posture management (CSPM). As just a few examples, Palo Alto Networks has purchased Bridgecrew, Evident.io and RedLock; Rapid7 snapped up Alcide and DivvyCloud; VMware bought CloudCoreo and CloudHealth; FireEye got Cloudvisory; and Trend Micro owns Cloud Conformity.

Now, Deloitte, the multibillion-dollar tax consultancy/VAR, is getting in on the CSPM action, too.

CloudQuest & CSPM

The behemoth channel partner on Monday said it has acquired CloudQuest. CloudQuest specializes in CSPM — or technology that identifies and remediates risks across IaaS, SaaS and PaaS. Deloitte did not say how much it paid for CloudQuest.

The deal bolsters Deloitte’s cloud cybersecurity portfolio. In fact, CloudQuest marks its second cloud security purchase of 2021. The first was Root9B, a threat intelligence provider, in January. More to the point, buying CloudQuest takes direct aim at helping end users stay safe as attackers set their sights on the cloud, Deloitte said.

“As organizations work to build or advance their security postures for cloud or hybrid cloud environments, we’re expanding and diversifying our services and solutions portfolio to help our clients continuously monitor, prevent and remediate security threats,” said Vikram Kunchala, risk and financial advisory cyber cloud leader and principal at Deloitte.

Founded in 2017, CloudQuest built its platform on Google Cloud Platform. Those cloud-native capabilities let users manage security workflows while reducing risk and improving data security. For instance, CloudQuest integrates with various ticketing and security analytics platforms.

A Wise, Strategic Move

The CloudQuest and Root9B purchases set the stage for Deloitte’s success in cloud cybersecurity. As Adam Etherington, principal analyst of digital enterprise services at OMDIA, wrote in a report last month, “Innovation and strong road maps of solutions are key as enterprises look for long-term partnerships in security versus transactional. They want to have confidence that their partners are investing so that their future requirements will be met.”

Deloitte says it aims to achieve just that.

Deloitte’s Deborah Golden

“We see incredible opportunity in novel approaches that help organizations securely transform and operate while also realizing competitive advantage,” said Deborah Golden, risk and financial advisory cyber and strategic risk leader and principal, at Deloitte. “Our acquisition of CloudQuest represents our profound commitment to transforming alongside our clients, competing vigorously in the market, and aggressively building out tech-enabled approaches that position Deloitte … as an unquestionable business enabler.”

And Deloitte says the addition of CloudQuest to its Cyber Cloud portfolio likely won’t be its last such deal. The VAR says it will keep expanding its focus on cloud security orchestration, automation and response (SOAR) services and solutions. That’s because demand remains high.

“While the global pandemic slowed some things, it didn’t slow cloud migration or cloud reliance for the vast majority of organizations,” Kunchala said.

To be sure, as MarketsandMarkets notes, the cloud security market will grow from $34.5 billion last year to $68.5 billion by 2025. That represents a compound annual growth rate of 14.7%. The research firm notes the factors driving that increase include the rising number of sophisticated cyberattacks on cloud computing systems, as well as the need for compliance with various upcoming regulations.