Analyst Dan Ives joins us from Wedbush to discuss what to expect this evening and what's been happening in the cybersecurity group.
Scott
Dan Ives
Cybersecurity is being swept up in negative software sentiment, with the view that AI tools could disintermediate the sector, but our checks show cybersecurity should see 300-500 basis points of acceleration this year.
How can you have checks on things we don't know what we're checking for yet? We don't know what these AI tools will do or how they'll disintermediate industries until we see it.
Scott
Dan Ives
Typically 5-8% of IT budgets are cybersecurity related, but now with comprehensive AI platforms, about 70% of IT budgets have an AI angle, and cybersecurity could capture 20-25% of potential budgets.
You've called Palo Alto a 'table pounder' - do you still believe that or is the jury still out? The stock has had earnings upsets and doesn't just go straight up.
Scott
Dan Ives
Three reasons why Palo Alto is a double table pounder: CyberArk deal changes Palo Alto, AI inflection point where 25% of deal flow will be positively influenced, and negative sentiment isn't factoring this in.
You seem to defend companies first and ask questions second - are you afraid you're missing something on any of this?
Scott
Dan Ives
The confidence comes from hundreds of reseller/partner checks and travel - if there's a quarter we miss or stock is down, I defend based on the work and 25 years of experience.