Growing Influence of Hyperscalers in Cybersecurity Markets
Cloud Data Security & Resilience
,
Cloud Security
,
Events
Morgan Stanley’s Hamza Fodderwala on Cybersecurity Market Trends and Opportunities
Hyperscalers such as Microsoft, Amazon Web Services and Google are enhancing cybersecurity acquisitions and investments to better secure their cloud environments and to build robust partner ecosystems, said Hamza Fodderwala, executive director, U.S. Software Equity Research, Morgan Stanley.
See Also: From CNAPP to CDR: The Cybersecurity Road Ahead
Cybersecurity investment activity in North America has grown against the backdrop of rising threats and stringent regulations, said Fodderwala, but investors are moving ahead with caution because of uncertainties such as the direction of interest rates and concerns around the spending environment.
“Given that we’re going to be in this period of uncertainty for a bit longer, you’re seeing more seller capitulation,” he said. “Smaller companies, whether it be private companies or even some smaller public companies, believe it’s probably better to join forces with a larger company or accept private equity bids because the environment is still somewhat tough.”
In this video interview with Information Security Media Group at RSA Conference 2024, Fodderwala also discussed:
- Why defense sectors such as cybersecurity appeal more to investors in times of uncertainty;
- Why a restricted customer spending environment is driving more strategic acquisitions;
- The competition in the generative AI market between startups and established players for security solutions.
Fodderwala serves as Morgan Stanley’s executive director and leads research on the cybersecurity equity market. He joined the firm in 2016 as vice president of equity research. Fodderwala has over a decade of experience as an equity analyst, including stints at Stern Value Management and Susquehanna International Group LLP.
