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Palo Alto Networks Shares Surge 5.16% on IoT Security Expansion into China

AInvestWednesday, Nov 6, 2024 5:38 pm ET
1min read

On November 6th, Palo Alto Networks saw its shares rise by 5.16%, marking a two-day gain of 6.66%. This increase pushed its intraday prices to the highest levels since September 2022. In recent developments, the company announced the introduction of its Internet of Things (IoT) and Operational Technology (OT) security services to the Chinese market. The initiative will be operated locally by Digital China Cloud Computing Co., Ltd. (Shenzhou Digital Cloud Computing), aiming to address the unique cybersecurity needs of Chinese enterprises with a tailored and efficient solution.

The proliferation of IoT and OT technologies has become ubiquitous across various industries due to the ongoing wave of digital transformation. According to a report by Palo Alto Networks, these devices now account for over 30% of enterprise network equipment. This shift poses significant cybersecurity challenges as devices with weak built-in security and vulnerabilities become prime targets for cyber attackers. As many industrial devices rely on proprietary protocols and connect to broader systems, safeguarding these complex networks against exposure has become increasingly difficult.

Victor Chou, President of Palo Alto Networks Greater China, highlighted the multifaceted security risks facing global and Chinese companies concerning IoT/OT, including malware attacks, device hijacking, DDoS attacks, data breaches, and supply chain attacks. Palo Alto Networks' security solutions offer comprehensive visibility and control, facilitating zero-trust security architectures that employ machine learning and AI for threat detection and response while enforcing security through flexible policies and improved supply chain security management.

The collaboration with Digital China Cloud Computing leverages robust technology and an array of solutions to ensure compliance with Chinese regulations and local data storage. The services will integrate with Palo Alto Networks' next-generation firewalls (NGFWs) and Secure Access Service Edge (SASE) platforms to effectively mitigate threats and control the risks associated with IoT, IoMT, OT, and Bluetooth devices. Real-time identification and management of these devices are powered by machine learning, coupled with crowdsourced data to detect anomalies and continuously assess risks.

This IoT/OT security service is set to benefit enterprises by enhancing security postures through visibility, risk assessment prioritization, and automated workflows across various equipment. By emphasizing innovation and research alongside cloud technology advancements, this partnership promises to elevate business efficiency and maintain a competitive edge. As Palo Alto Networks continues to push forward in the cybersecurity realm, its initiatives are crucial for supporting the secure advancement of digital business operations.

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