Zscaler Expands Partnership with CrowdStrike and Red Canary for AI-Driven Security Operations

Zscaler (ZS) has expanded its partnership with CrowdStrike and Red Canary to enhance AI-driven security operations. The integrated platform aims to improve detection accuracy and streamline workflows by combining user context, endpoint visibility, and threat response. This collaboration offers organizations a unified, cloud-native defense layer that replaces legacy endpoint tools. Zscaler's Zero Trust Exchange platform, CrowdStrike's Falcon, and Red Canary's agentic-AI managed detection and response form the basis of this partnership.

Zscaler (ZS) has recently expanded its partnership with CrowdStrike and Red Canary to enhance AI-driven security operations. This strategic alignment combines key cybersecurity platforms and leverages AI-driven automation to improve detection accuracy and streamline workflows. The integrated platform aims to provide organizations with a unified, cloud-native defense layer that replaces legacy endpoint tools.

The partnership involves Zscaler's Zero Trust Exchange platform, CrowdStrike's Falcon, and Red Canary's agentic-AI managed detection and response. By integrating these technologies, the collaboration offers a comprehensive solution that combines user context, endpoint visibility, and threat response to provide a more robust security posture.

This move comes at a time when Zscaler has been experiencing strong momentum. The stock has climbed 50% year to date and is up 38% over the past 12 months, reflecting investor confidence in the company's growth strategy. Although there were recent sessions where the price dipped, such as a 1% drop, the broader trajectory reflects continued confidence among investors in Zscaler’s growth strategy and rising relevance amid enterprise digital transformation [1].

The growing demand for cloud-native security platforms is expected to drive Zscaler's growth. According to Simply Wall St, the demand for Zscaler's cloud-native security platform is expected to grow as remote and hybrid work environments become more common. This trend increases the need for zero trust architecture and secure access, which can directly expand Zscaler's addressable market and recurring revenue growth [1].

The Zero Trust Network Access (ZTNA) market is also expected to grow significantly. According to MarketsandMarkets, the global ZTNA market is expected to reach USD 4.18 billion by 2030 from USD 1.34 billion in 2025, at a Compound Annual Growth Rate (CAGR) of 25.5% during 2025–2030 [2]. This growth is driven by the increasing adoption of cloud-native environments and the need for secure, identity-based access that aligns with modern cloud security principles.

The partnership with CrowdStrike and Red Canary is likely to position Zscaler as a leader in the cloud-native security market. The integrated platform is designed to address the challenges posed by distributed applications, dynamic workloads, and remote access needs, which traditional perimeter-based models cannot effectively address. By offering continuous verification, least-privilege access, and application-specific connectivity, Zscaler's solution enables enterprises to secure cloud-native environments while maintaining operational efficiency and scalability.

However, there are also risks to consider. Increased competition from larger security vendors and ongoing macroeconomic uncertainty could challenge Zscaler’s growth expectations and put pressure on future margins. Additionally, the Asia Pacific region, which is expected to grow at the highest CAGR during the forecast period, faces significant cybersecurity challenges that could impact the adoption of ZTNA solutions [2].

In conclusion, Zscaler's expanded partnership with CrowdStrike and Red Canary is a significant step in the company's strategy to enhance AI-driven security operations. The integrated platform offers a robust solution that addresses the evolving security needs of enterprises. While there are risks to consider, the strong momentum of Zscaler's stock and the growing demand for cloud-native security suggest that the partnership could be a positive development for the company and its investors.

References:
[1] https://simplywall.st/stocks/us/software/nasdaq-zs/zscaler/news/zscaler-zs-how-the-crowdstrike-partnership-impacts-its-valua
[2] https://www.prnewswire.com/news-releases/zero-trust-network-access-ztna-market-worth-4-18-billion-by-2030--marketsandmarkets-302541816.html