Proofpoint, Sumo Logic Start November with Big Acquisitions

Two acquisitions rocked the cybersecurity channel Monday, with Proofpoint ponying up $225 million for ObserveIT and Sumo Logic buying security operations startup Jask.

With its acquisition, Proofpoint will extend its data loss prevention (DLP) capabilities with endpoint joining email, cloud access security broker (CASB) and data-at-rest to form an enhanced enterprise DLP offering. The combination of ObserveIT’s endpoint agent technology and data risk analytics with Proofpoint’s information classification, threat detection and intelligence will give enterprises “unprecedented insights into user activity with their sensitive data, wherever it resides,” according to Proofpoint.

In addition, Proofpoint will invest in ObserveIT’s insider threat management solution, which allows security teams to detect, investigate and prevent potential insider threat incidents by delivering real-time alerts and insights into user activity in one solution.

Sumo Logic said its acquisition brings together its continuous intelligence platform, including its cloud security information and event management (SIEM) and security compliance solutions, with Jask‘s advanced security operations center (ASOC) offering to deliver a “leading cloud-native security intelligence solution built for today’s digital businesses that leverage modern applications, architectures and multicloud infrastructures.” Terms of the deal weren’t disclosed.

Ovum’s Mike Sapien

Mike Sapien, Ovum’s vice president and chief analyst of enterprise services, tells us these acquisitions are continuing the trend of security vendor consolidation.

“Customers are looking for fewer security vendors/tools and more integration with what they have,” he said. “Security tools are at a saturation point with customers now. So vendors have to integrate their offerings, including with third parties, and smaller vendors need to combine with larger vendors to survive. CISOs do not want another point solution security product that requires more testing, staff resources or task force to validate benefits. This is driving this vendor consolidation and large vendors to combine, integrate internal products and look for acquisitions to integrate.”

Also, Proofpoint’s move is about expanding services quickly to gain more share of wallet from their large base of customers, Sapien said.

Proofpoint’s Ryan Kalember

Ryan Kalember, Proofpoint’s executive vice president of cybersecurity strategy, tells us the ObserveIT acquisition will be a successful formula for his company’s global channel partners as it extends its leadership in the cybersecurity market and, with ObserveIT, enhances its information protection capabilities to detect and mitigate data risks and insider threats across email, cloud and the endpoint.

“Our channel partners trust us to provide an unparalleled level of protection and insight to safeguard their customers’ most attacked employee, and data from advanced cyberattacks and compliance risks,” he said. “By combining Proofpoint’s CASB solution with ObserveIT’s innovative, cloud-based insider threat management solution, it is far simpler for enterprises to precisely control employee and contractor access and data flow to on-premises, cloud and consumer applications and resources.”

ObserveIT’s Mike McKee

Mike McKee, ObserveIT’s CEO, tells us his company’s channel partners will benefit from this as Proofpoint “believes in our insider threat vision and the market opportunity.”

“Insider threat management is an emerging cybersecurity category with the potential to develop into a multibillion-dollar market segment,” he said. “We’ve been proactively shaping the category for years and have earned…

…a reputation as a visionary solution provider for insider threat solutions. We are confident our channel partners will continue to succeed as we continue to innovate our platform and leverage our new reach and support to accelerate growth as the insider threat management leader.”

ObserveIT will operate independently through close of the transaction and 2019, McKee said.

“ObserveIT will then become a focused and distinct product group within Proofpoint with tight coordination and joint initiatives across our channel, sales, marketing, product and engineering groups,” he said.

Sumo Logic’s Ramin Sayar

Ramin Sayar, Sumo Logic’s president and CEO, tells us that Jask provides a “unique and complementary” technology that extends his company’s reach, addressing new SOC analysts’ pains, and accelerates his company’s overall security intelligence strategy.

“The market around cloud SIEM is developing rapidly, and companies are looking for help in how they approach this new ‘cloud-native’ security world,” he said. “What worked for on-premises IT simply doesn’t for these modern  applications, infrastructures and architectures, and so new companies are coming in to fill that market gap. Sumo Logic is at the forefront of this and our partner ecosystem of MSPs, MDRs and VARs will also benefit by the acceleration of our joint offerings to market that address cloud and digital transformations.”

The addition of Jask further strengthens Sumo Logic’s direct and partner sales motion, Sayar said.

“We anticipate those partners that made a commitment to Jask [will] join the Sumo Logic channel,” he said. “This will open up more opportunities for them to offer more security and observability solutions to their customers.”

Jask’s Greg Martin

“The team at Jask set out to fundamentally disrupt traditional security solutions that are no longer meeting the needs of modern security teams,” said Greg Martin, Jask‘s CEO. “Over the past five years, we’ve worked with customers and experts on the front lines of this disruption to uncover what will truly have an impact on improving the performance of security analysts that have been mired with alert fatigue. We’re excited to bring together our collective security DNA, and joint customers and partners to create a powerful security intelligence solution that provides a cloud-native, best-in-class modern SOC and analytics solution.”