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What Palo Alto’s $25B CyberArk Deal Tells Us About the Future of Cyber Security

A landmark acquisition that signals a major shift, from defending perimeters to securing identities in the age of AI.

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Overview:


In July, Palo Alto Networks announced its intent to acquire CyberArk one of the world’s leading identity security providers, in a US $25 billion deal. For those across the IT and cybersecurity community, this news is no longer new. But during Cyber Security Awareness Month, it’s a moment worth revisiting because an acquisition of this size signals something much larger about where the next frontier of cyber risk lies.

+156%

Increase in identity attacks in the last 24 months

*Source eSentire 2025 Identity Threat Research Report

2025 Identity Threat Research Report | eSentire TRU Team

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From Perimeter Defence to Identity Control:

For decades, cybersecurity strategy has focused on protecting the perimeter: securing networks, endpoints and firewalls against intrusion. But the modern enterprise no longer has a single perimeter. With hybrid work, cloud adoption and the growth of AI-driven automation, identity has become the new control plane. 


Most modern breaches now begin not with a sophisticated exploit, but with a compromised identity. Attackers no longer need to “break in” when they can log in leveraging stolen credentials, over-privileged accounts, or unmonitored machine identities to move laterally and access critical systems.


This is precisely why identity has become such a critical focus for global security vendors and why Palo Alto’s acquisition of CyberArk is such a powerful signal. The deal reflects a broader recognition that identity is now foundational to cyber resilience, not a feature that can be added later.



Identity in the Age of AI:


As AI adoption accelerates, so too does the complexity of access. Machine learning models, bots, and AI “agents” are now making decisions, interacting with data and initiating actions on behalf of humans. Each one represents a potential identity that must be authenticated, authorised and audited.


The convergence of AI and identity security will define the next wave of cyber defence. Organisations that fail to understand and govern how human and non-human identities interact across systems will face growing risk not just of data loss, but of operational disruption and reputational damage.



What This Means for Business Leaders:

For CIOs, CISOs, and business leaders, the takeaway is clear: identity can no longer sit on the sidelines of your security strategy. It must be embedded across every control layer from access management and endpoint protection to cloud governance and threat detection.


This doesn’t mean every business needs to follow the path of global platform consolidation. But it does mean leaders must invest in visibility, least-privilege access, conditional policies and continuous authentication to keep pace with the evolving threat landscape.


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AVTech’s Perspective




At AVTech, we see identity as the thread that connects every layer of modern cybersecurity. Our team helps organisations strengthen identity foundations, reduce risk and build scalable, compliant environments that support business growth.


Because as technology evolves, so too must the way we protect it and identity is where that evolution begins.


As businesses adopt cloud platforms, hybrid work, and AI, traditional network perimeters are dissolving. Attackers increasingly target user credentials instead of infrastructure, making identity protection central to modern defence.

The US $25 billion acquisition highlights a global shift toward consolidating identity-centric capabilities within major security platforms. It signals that identity governance and access control are now seen as critical to resilience, not optional add-ons.

Start with visibility and control: implement least-privilege access, enforce MFA, regularly review permissions, and adopt continuous authentication. Partnering with a trusted MSP can help embed identity governance into existing infrastructure.

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