11:39 AM EDT, 07/15/2024 (MT Newswires) -- Alphabet's (GOOG, GOOGL) Google ( GOOG ) would become the "top vendor" in the cloud and application security space, and "a top 10 security vendor overall" if it proceeds with the potential acquisition of cloud security startup Wiz, Oppenheimer said in a note Monday.

The $23 billion potential deal is expected to have little impact on Microsoft (MSFT) and Amazon.com's (AMZN) Amazon Web Services, but the two companies are "less likely to partner with Google ( GOOG )" as they did with Wiz, according to the note.

The potential deal is also expected to draw talent away from Google ( GOOG ), potentially benefiting other cloud security vendors like Palo Alto Networks (PANW), CrowdStrike (CRWD), and Fortinet (FTNT), and making Google ( GOOG ) a competitor instead of partner of these companies, the note added.

"We believe these vendors will have to revisit their partnership strategy with Google ( GOOG ). Additionally, we note that Wiz is very price aggressive, and it remains to be seen if Google ( GOOG ) changes this pricing strategy," Oppenheimer said.

Oppenheimer added that it also sees a potential acceleration of consolidation in the cloud security market if the acquisition pushes through, as smaller startups and larger firms would look to boost their market share.

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