The SolarWinds hack that hit multiple U.S. companies and government agencies “could be a gamechanger for the cyber security industry,” Wedbush analyst Daniel Ives wrote in a commentary Friday.
“We believe this cyber-attack will likely rank as one of the worst (very possibly the worst ever) in the last decade given the targeted and cyber espionage nature of this attack,” he said. Microsoft (MSFT) - Get Report was one of the companies hit.
“The pervasiveness of this attack could change the industry for years to come as the US government and enterprise CIOs grapple with the ramifications,” Ives said.
“The attack highlights a massive TAM [total addressable market] for cyber security. Cyber security names such as Zscaler (ZS) - Get Report, Crowdstrike (CRWD) - Get Report, CyberArk (CYBR) - Get Report, Qualys (QLYS) - Get Report, Varonis (VRNS) - Get Report, SailPoint (SAIL) - Get Report, Telos (TLS) - Get Report, and Tenable (TENB) - Get Report become front and center on this phase of cloud deployments among both governments and enterprises.”
Zscaler recently traded up 5%, Crowdstrike up 11%, CyberArk up 13%, Qualys up 13%, Varonis up 11%, SailPoint up 6%, Telos up 6% and Tenable up 15%.
“With more sensitive data and critical information needing to be protected in these cloud deployments with work-from-home accelerating these trends, we believe security vendors stand to benefit during 2021, as more spending shifts towards broader cloud deployments,” Ives said.
“We believe there is a $200 billion dollar growth opportunity in cloud security up for grabs over the next five years for those vendors that have the solution sets to protect critical cloud deployments and seamlessly work with on premise and public/hybrid workloads.”