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Daily Security Review

Zscaler Acquires Red Canary: What It Means for AI-Powered Security Operations

28 May 2025

Description

The cybersecurity market is booming, projected to triple in size from $215 billion in 2025 to $697 billion by 2035. This explosive growth is being fueled by rising cyber threats, the digital transformation of global businesses, and an urgent need for advanced security operations. One of the clearest signals of this momentum? Zscaler’s acquisition of Red Canary—a leading Managed Detection and Response (MDR) provider.In this episode, we unpack Zscaler’s strategic decision to acquire Red Canary and what it reveals about the evolving cybersecurity landscape. We explore how this move reflects a broader M&A trend in the sector, where large players are aggressively acquiring innovative startups to enhance their detection capabilities and talent pool. With access to 500 billion daily data transactions via Zscaler’s Zero Trust Exchange, Red Canary is poised to supercharge its threat detection accuracy and speed.We’ll break down how MDR differs from traditional MSSPs and EDR, why it's now considered a critical service for enterprises, and how AI-driven security operations are becoming the new normal. Plus, we dive into how Zscaler’s zero trust architecture is simplifying post-acquisition integration, allowing for faster value realization with less risk.Tune in for a deep-dive look at one of the most significant cybersecurity deals of 2025—and what it means for the future of AI, MDR, and the multi-billion-dollar battle to secure the digital world.

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