In a significant development for Israel's cybersecurity landscape, cloud security startup Wiz has secured a major government contract, sources familiar with the matter have informed CNN. This deal, one of the largest government cybersecurity tenders ever issued in Israel, comes on the heels of Wiz reportedly turning down a $23 billion acquisition offer from Alphabet, Google's parent company.
The Israeli Ministry of Finance has selected Wiz to provide cloud security services across all government ministries and organizations. The services will be distributed through Accel Solutions Group's subsidiary, Danet, marking a pivotal moment in Israel's approach to governmental cybersecurity.
Key points of the deal include:
1. Wiz and Danet outbid industry giants Palo Alto Networks and Check Point in the tender process.
2. The contract has an estimated annual value in the tens of millions of shekels.
3. Wiz will be the preferred supplier for all government cloud protection projects, including ministries, state-owned companies, and security forces.
The competitive nature of the bid was evident in the unprecedented discount rates offered. Danet proposed a 96.8% discount, significantly undercutting Binat's 88.5% offer. This aggressive pricing strategy highlights the intense competition in the cybersecurity market, particularly in the government sector.
Despite the substantial discount, the deal represents a major win for Wiz, a company that has been making waves in the tech industry. However, it also underscores the challenges facing cybersecurity firms in achieving profitability. Reports indicate that Wiz currently operates at a loss of approximately $30 million per quarter.
The Ministry of Finance, Danet, Accel, and Wiz have not yet responded to requests for comment on this development.
As cloud security becomes increasingly crucial for government operations, this contract positions Wiz at the forefront of Israel's cybersecurity efforts. The deal not only strengthens Wiz's market position but also signals the Israeli government's commitment to fortifying its digital infrastructure against evolving cyber threats.
* Globes contributed to this article.
