Shares of Zscaler Inc. set a new 52-week high price after the company reported that it was selected by the U.S. DoD's Defense Innovation Unit for a secure cloud management project.
Cloud-based security company Zscaler Inc. (ZS:NASDAQ) today announced that "the Defense Innovation Unit (DIU), a U.S. Department of Defense (DoD) organization, selected Zscaler to deliver a secure cloud management solution."
The company stated that it will provide zero trust access in order to protect DIU users and cloud services from cyberthreats regardless of where they are working or what devices they are operating. The company indicated that if they are successful in creating and implementing a DIU prototype, the Zscaler solution will have the opportunity to provide services and scale to other DoD organizations through a production Other Transaction agreement.
The firm pointed out that "the DIU secure cloud management solution, powered by the Zscaler platform, will allow DIU users to securely access SaaS applications across Amazon Web Services, Google Cloud and Microsoft Azure."
Zscaler advised that it is a zero trust leader with proven benefits and leadership including the ability to offer security at scale for up to 500,000 DIU concurrent users and 1 million endpoints. The firm noted that its platform produces approximately 120,000 security updates daily to protect customers and processes more than 100 billion transactions per day while blocking approximately 100 million threats per day.
Zscaler's VP of Federal Drew Schnabel commented, "Zscaler has been a zero trust leader since our inception, and we are proud to work with DIU to help protect the Department of Defense from adversaries threatening national security...Zscaler will minimize the attack surface by directly connecting people to the internet and their applications. Our innovative approach also delivers a great experience for personnel no matter their location, device, or network, through our globally distributed cloud."
The firm explained that "the DIU accelerates the adoption of commercial technology throughout the military and growing the national security innovation base and partners with organizations across the DoD to rapidly prototype, field and scale advanced commercial solutions that address national security challenges."
In a separate news release, the company announced yesterday that "it has acquired Edgewise Networks, a pioneer in securing application-to-application communications for public clouds and data centers." The specific terms of the transaction were not disclosed in the release. The firm reported that Edgewise significantly improves east-west communication security by verifying the identity of application software and services which measurably reduces the risk of application intrusions and data breaches.
The company's Chairman and CEO Jay Chaudhry remarked, "Zscaler was founded to innovate security in a cloud-first world. We are disrupting legacy network security, reducing business risk, improving the user experience, and consolidating security point products for our customers...Edgewise is highly innovative technology that enables application segmentation without having to do traditional network segmentation which is often done with virtual firewalls. We are excited to welcome the Edgewise team to the Zscaler family."
Peter Smith, CEO of Edgewise added, "We are proud to have made zero trust security achievable in complex, multi-cloud environments. Our core innovation is the use of software identity verification to simultaneously strengthen security and simplify operations...Edgewise automates the identity-based policies making it easy to reduce the attack surface across public cloud, multi-cloud, data center and even container environments. We are thrilled to join the Zscaler family and share our innovation with the global Zscaler customer base."
Zscaler is a 100% cloud-based security company headquartered in San Jose, Calif. The firm's multi-tenant distributed cloud security platform is used in greater than 185 countries to protect thousands of customers from cyberattacks and data loss. The company listed that "its flagship services Zscaler Internet Access™ and Zscaler Private Access™ create fast, secure connections between users and applications, regardless of device, location or network."
Zscaler Inc. began the day with a market capitalization of around $9.8 billion with approximately 129.4 million shares outstanding and a short interest of about 8.0. ZS shares opened almost 15% higher today at $87.00 (+$11.20, +14.78%) over yesterday's $75.80 closing price and reached a new 52-week high price this morning of $96.69. The stock has traded today between $85.50 and $96.69 per share and is currently trading at $98.30 (+$22.50, +29.68%).
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