Google’s cybersecurity capabilities, especially after Microsoft’s Azure outage

Source: The post Google’s cybersecurity capabilities, especially after Microsoft’s Azure outage has been created, based on the article “Cybersecurity: Microsoft’s woes versus Google’s moves” published in “Live Mints” on 22nd July 2024

UPSC Syllabus Topic: GS Paper3-security-cyber security

Context: The article discusses a major outage in Microsoft’s Azure due to a cybersecurity issue, highlighting the importance of cybersecurity. Google plans to acquire Wiz, a cybersecurity startup, for $26 billion to enhance its cloud services. This move faces antitrust scrutiny due to Google’s market dominance.

For detailed information on Microsoft Update Flaw Causes Global Disruption read this article hear

Why is Cybersecurity Important?

1. Impact of Failures: Microsoft’s Azure outage, due to a cybersecurity issue, halted operations for airlines, media houses, and banks globally, including in India.
2. Global Dependency: Many sectors rely heavily on secure and stable technology infrastructure.
3. Frequent Breaches: Almost 85% of the world’s largest organizations report at least one major breach annually, with over 50% reporting more than two.

What is Google Planning?

1. Acquisition of Wiz: Google plans to acquire Wiz, a cybersecurity startup, for about $26 billion to strengthen its cloud services.
2. Enhancing Cybersecurity: This move aims to improve Google’s cybersecurity capabilities, especially after Microsoft’s Azure outage highlighted the importance of robust cyber defense.
3. Competitive Edge: Google Cloud, led by Thomas Kurian, lags behind Amazon and Microsoft. Acquiring Wiz could help it compete more effectively.
4. Antitrust Scrutiny: The acquisition faces regulatory scrutiny from bodies like the US Federal Trade Commission and the European Commission, due to Google’s dominant market position.

What Strategies Does Google Use?

1. Strategic Planning: Google combines strategic planning with regulatory compliance, ensuring its acquisitions align with its long-term goals.
2. Early Engagement: Google engages proactively with regulators before deals are publicly announced, addressing potential concerns early on.
3. Public Vision: Google shares its vision for acquisitions, emphasizing benefits to innovation and user experience. This approach helps generate trust and mitigate backlash.
4. Concessions: Google agrees to concessions to gain approval, like not using Fitbit’s health data for advertising during its 2021 acquisition.
5. Data and AI Integration: Google enhances its products by integrating data and AI from acquired companies, demonstrated by the DeepMind acquisition in 2015.
6. Complementary Targets: Google targets companies that complement its operations, such as YouTube and Android, which have become market leaders and spurred innovation.
7. Regulatory Filings: Google meticulously prepares regulatory filings for its acquisitions to ensure compliance with antitrust laws.

What Are the Antitrust Concerns?

1. Regulatory Scrutiny: Google’s acquisition of Wiz faces scrutiny from the US Federal Trade Commission, Department of Justice, and the European Commission. The regulatory environment varies by region. The EU has strict antitrust rules, while the US is becoming more stringent.
2. Market Dominance: Google’s dominance in search, online advertising, and mobile operating systems raises concerns about stifling competition.
3. Past Issues: Google has faced fines from the EU for anti-competitive practices in Android and search operations.
4. Data Privacy: Acquisitions involving valuable data, like Fitbit, raise concerns about data privacy and market dominance.
5. Consumer Impact: Regulators worry mergers might harm consumers by reducing competition, raising prices, or limiting innovation, as seen in the DoubleClick buy-out.

Question for practice:

Examine how Google’s planned acquisition of Wiz might address the cybersecurity challenges highlighted by Microsoft’s Azure outage.