Cybersecurity Industry Adapting to Software Bug Challenges

The industry needs a balance between quick updates and avoiding vulnerabilities, emphasizing the importance of both endpoint and perimeter security.

### Cybersecurity Industry Responds to Recent Software Bug and Market Developments
* 🔒  CrowdStrike recently experienced a software bug, highlighting the delicate balance between **quick updates** and **cyber risks** in the industry.
* 🏢  Check Point Software Technologies, a major player in the cybersecurity sector, emphasized the importance of **maintaining this balance** and **learning from such incidents**.
* 🔄  The industry is considering potential architectural shifts to **prevent similar single points of failure** in the future.
* 🛡️  Check Point's CEO stressed the ongoing need for both **endpoint security** and **network security technologies** to address **evolving cyber threats**.
* 💰  Check Point exceeded earnings expectations and is positioned for **revenue growth**, with potential for **increased M&A activity** under new leadership.
* 🤝  The CEO expressed interest in pursuing **more and larger M&A deals**, potentially following the example of recent industry developments such as the proposed acquisition of **Wiz by Google**.
* 🌐  The cybersecurity landscape continues to evolve rapidly, with companies adapting to **new challenges and opportunities** in the market.

What's the last seven days or so been like for you and your company, incoming and outgoing, and your response to what happened with CrowdStrike? So like everybody else, we've been watching it and supporting customers and helping in what we can be help. It's not a cybersecurity bug. It is a software bug that shouldn't have happened, but it shows us how dependent us in software that can take the world up and down. And it's also a very strong we need the very tight balance between these quick automatic updates and a and the cyber risks that are involved, because these quick, quick updates are supposed to help solve vulnerabilities. And unfortunately, every week there's dozens of vulnerability that are discovered in companies. And we really need these quick updates to to stop these attackers. So, Gil, have you changed anything? Has the industry changed anything? Architecturally speaking, that would mean that this cannot happen and become the single point of failure again.

I think we are learning.
I mean, the entire industry, and again, I don't want to exclude us.
We need to learn how to create this balance between quick updates on one
hand and avoiding vulnerabilities in the app, which is also very, very important.
And I think that's a lesson that the entire world needs to learn.
Joe, I appreciate it. It's early in this process.
There were questions about the future of firewalls.
And I wanted to ask you about whether there's going to be this sort of
architectural shift in cybersecurity in the landscape.
Our analysts at Bloomberg Intelligence talk about a move to agentless delivery
and security from agents like in the case of endpoint security provided by
CrowdStrike. Big picture.
How do you see that playing out? In the last four years.
Again, I'm in this business for 31 years, and I think we've kind of
invested the network cybersecurity part of things with the Internet.
There's always again, dozens of

technologies, even hundreds of
technologies. The two biggest one are the network
security and the endpoint technology. And I think we need both.
I mean, it would be easy for me to say everybody will shift to the network.
Many times people will say the other way round, but at the end of the day, we
need both the endpoint security and the perimeter security, and each one of them
complements each other. And still with all of that, we're still
facing a lot of cyber risks. They're just growing, unfortunately.
There is so much to talk about with your company and your industry, Kelly,
because you, of course, have managed to beat expectations in your earnings.
You're seeing the revenue growth as it had been anticipated.
You got a new CEO coming in, but also we've got M&A not happening, potentially
happening. Google and Wizz, for example.
Some of the interpretation is with your new CEO coming in, not of SAPHIRA, that
maybe you'll do more M&A that maybe you

could be beefing up pursuing deals to agree. At first. I hope so. I definitely hope it will do more M&A we've been doing to a year in the last few years. But we can do more and we can do bigger ones. And I do think that what's happening between wise and Google is actually very interesting. This is an amazing company, built very fast leadership in the cloud security space. And I think the fact that they want to remain standalone and build a large company is something that we can all admire because it will take the many, many years to get to the same financial numbers that we got with this. I mean, rumors about the deal.

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The Impact of the CrowdStrike Software Bug

The recent CrowdStrike software bug has highlighted the critical dependence on software and the balance needed between quick updates and cyber risks.

The incident has prompted the industry to reevaluate the architectural shift in cybersecurity to prevent such single points of failure.

There is a growing discussion about a potential move to agentless delivery and security in the cybersecurity landscape.

The Importance of Network Security and Endpoint Technology

Both network security and endpoint technology are crucial in addressing cyber risks, complementing each other rather than competing.

Despite the advancements in these technologies, the cyber risks continue to grow.

The company has exceeded earnings expectations, with anticipated revenue growth and potential upcoming M&A activity, especially with a new CEO coming in.

Potential M&A Deals and the Success of Wise in the Cloud Security Space

There is a hope and intention to pursue more and bigger M&A deals in the future.

Wise has rapidly become a leader in the cloud security industry and is determined to remain independent to build a strong and successful company.

Rumors about a potential deal between Wise and Google are generating interest and admiration in the business community.