If one silver lining came out of a year filled with endless cyberattacks and work-from-home fatigue, it would likely be linked to cloud software and cybersecurity. The new Fenwick - Bloomberg Law SV 150 List shows widespread growth among both cloud software businesses and cybersecurity vendors based in Silicon Valley. Coincidence? Probably not.
Communication Is (Still) Clutch
While software-as-a-service (SaaS) stalwarts Salesforce (SV 150 #15) and Adobe (SV 150 #19) held their ground in this year’s SV 150 List, one of the most notable categories of growth occurred among unified-communications-as-a-service (UCaaS) providers. Not surprisingly, Zoom (SV 150 #50) continued its upward trajectory, spurred last year by Covid-19 restrictions that required employers to rely heavily on remote video conferencing. Of the 150 companies on the list, Zoom’s 41-spot jump in the rankings was the largest this year.
With offices gradually reopening, will Zoom’s remarkable growth begin to stall? We may soon find out.
A Rising Cloud Lifts All Boats
Bloomberg Intelligence (BI) research points to the pandemic-driven increase in remote work as the cause of businesses’ accelerating migration to cloud software, thereby creating an increased adoption of cloud-based security solutions that, BI posits, is still in its infancy. This rising demand for network and endpoint security is reflected in revenue boosts among cybersecurity companies. CrowdStrike (SV 150 #93), which recently garnered attention for its strategic partnership with Google (SV 150 #2), experienced the most noteworthy gains within this group.
The Best Is Yet to Come
Cybersecurity vendors throughout the nation stand to gain even more from an executive order signed May 12 by President Biden following a string of devastating intrusions, including the notorious cyberattacks involving SolarWinds and Colonial Pipeline. The order requires implementation of new software security standards for government contractors, which could lead to a further increase in the already rising demand for cybersecurity expertise.
Bloomberg Law subscribers can find guidance on drafting clauses related to data breaches, security audits, and compliance matters in the new Data Management module on our Practical Guidance: Information Technology resource.
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