Check Point Software Technologies Ltd. CHKP has been on track with its efforts to tap into the serverless security market.
The company recently announced that it has expanded the capabilities of its CloudGuard cloud security platform to support Kubernetes computing services, including Amazon AMZN Elastic Kubernetes Service (Amazon EKS) and Amazon Elastic Container Service (Amazon ECS).
Reportedly, CloudGuard will help customers’ Kubernates configurations comply with container security baselines.
Moreover, in line with its focus on serverless security, Check Point acquired serverless security vendor Protego earlier this month, making it the first security company to have an integrated security solution for cloud workload protection (CWPP) and security posture management (CSPM) while delivering strong serverless security.
Check Point Software Technologies Ltd. Price and Consensus
Check Point Software Technologies Ltd. price-consensus-chart | Check Point Software Technologies Ltd. Quote
Rationale Behind the Moves
Serverless computing technologies, such as AWS Lambda, are witnessing rapid adoption. Management of Check Point noted in a recent survey that 87% of respondents have adopted container technologies this year, up from 55% in 2017.
Moreover, per MarketWatch, the global serverless architecture market is expected to reach $23.79 billion by 2025, at a CAGR of 28.30% from 2018.
Furthermore, Check Point notes that serverless extended cloud service has grown 50% since 2018.
However, the migration to cloud-native applications is leading to vulnerabilities, which increase misconfigurations and security gaps, exposing organizations to potential data breaches and cyber-attacks. This requires a strong security solution to protect functions and code.
CloudGuard’s new capabilities, including a Serverless Code Scanning feature, identify and rectify security and compliance risks in a Serverless environment. It also provides security to AWS Serverless computing solutions, including AWS Lambda, AWS Fargate, Amazon API Gateway, Amazon DynamoDB and Amazon Kinesis.
The prospects of serverless security are attracting big and small security players. However, the most notable competitor to Check Point in this area is Palo Alto Networks PANW, which acquired serverless security firm PureSec in June.
The addition of PureSec’s capabilities to its profile has pushed Palo Alto Networks into the niche market by strengthening its strategy to develop a complete and comprehensive cloud security suite.
However, the acquisition of Protego and the expansion of CloudGuard to accommodate serverless security capabilities position Check Point well to compete with its peers in this niche domain.
Zacks Rank & A Key Pick
Check Point currently has a Zacks Rank #3 (Hold). A better-ranked stock in the broader technology sector is Fortinet, Inc. FTNT, flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Fortinet is currently pegged at 14%.
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