Action1’s expertise in patch management fits well with CrowdStrike’s current need to improve its update mechanisms. By integrating Action1’s technology into its platform, CrowdStrike can greatly improve the testing and delivery of updates, something that has faced widespread criticism in the months following the Falcon attack.
Implications for customers
The $1 billion valuation is CrowdStrike’s largest investment and may be considered part of the broader costs associated with the Falcon-induced outage. The disruption caused by the flawed update not only affected customers but also damaged CrowdStrike’s reputation, leading to potential financial losses and additional pressure to ensure that such an incident does not happen again.
For customers, a potential acquisition can bring both benefits and uncertainty. On the other hand, they can expect improved security and reliability from the CrowdStrike platform, thanks to the integration of Action1 technology. On the other hand, there may be concerns about how acquisitions will affect pricing, service delivery, and overall business strategy. Either way, the deal is a definite strategic win for Action1, as it validates the value of its technology, giving it an advantage in the competitive cybersecurity landscape. “This proves that Action1 is in a fast-growing market and explains why Action1 is experiencing hypergrowth and is on track to soon reach 100 million ARR,” Vovk said in an internal memo.
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