Skyhigh Networks is based in Campbell, California, and was founded in 2011. The company has raised $106.5 million in funding to date, most recently in a Series D round in September 2016 led by Thomvest Ventures, according to Crunchbase.
Per the deal, Skyhigh Networks CEO Rajiv Gupta will run McAfee’s new cloud business unit.
Just last month McAfee announced a new product that provides better visibility into hybrid cloud environments. The Skyhigh acquisition further strengthens McAfee’s cloud security offerings, said Trevor Daughney, VP of product and solution marketing at McAfee.
“We’ve been getting a lot of interest from our customers to continue to develop our cloud story and how we’re helping them protect the cloud,” Daughney said. “Security has been one of the things that has held people back with moving to the cloud. This will help bolster our story and help the market make that transition more quickly.”
“We’ve been telling our employees, our customers, and our stakeholders we’re really serious about extending our leadership as a standalone cybersecurity company,” Daughney said. “This acquisition is a really important proof point for that. We’re acquiring the leader in the CASB space.”
CASBs give security professionals a single point of control over multiple cloud services, for any user or device. Gartner predicts that 85 percent of enterprises will use a CASB by 2020.
In a letter to stakeholders, McAfee CEO Chris Young said Skyhigh’s cloud security business complements McAfee’s endpoint security strength.
“Skyhigh had this prescience five years ago, when it distinguished itself as the first cybersecurity provider to launch what is now a burgeoning CASB category,” Young wrote. “They purpose-built a cloud platform for both frictionless experiences and coordinated control. They envision a world where the cloud is not only secure — but the most secure environment for business.”
Skyhigh customers include Western Union, DirecTV, Adventist Health System, and Equinix.
Skyhigh’s Gupta also posted a message to company stakeholders about the acquisition.
“As part of McAfee, we will have access to even greater resources to accelerate delivery of Skyhigh’s product roadmap, further advancing our vision of making cloud the most secure environment for business,” he wrote. “And combined with McAfee’s endpoint security capabilities and operations center solutions with actionable threat intelligence, analytics, and orchestration, we will be able to deliver a set of end-to-end security capabilities unique in the industry.”
The move follows McAfee’s recent efforts to add partners to its Security Innovation Alliance ecosystem — including IBM Security and Juniper Networks — and integrate its security technology with Cisco’s.
The company is also broadening its security portfolio. In addition to launching a new cloud security product last month, McAfee announced a second product that allows security analysts to assess and respond to threats in less time using machine learning and artificial intelligence.
“Build, buy, and partner — that’s definitely the lens we’re looking at,” Daughney said. “Our strategy is really clear: using the endpoints and the cloud as the control points, and then providing the tools for security operations to be able to analyze their threat environment. We are making progress through a balance of organic and inorganic growth.”