Action1’s specialization in patch management seems to be a perfect fit for CrowdStrike’s current initiative to enhance its update processes. By incorporating Action1’s technology into its platform, CrowdStrike has the potential to significantly improve the testing and deployment of updates, addressing the criticism it received following the Falcon incident earlier this year.
Implications for customers
Valued at $1 billion, the potential acquisition by CrowdStrike can be seen as a substantial investment, possibly attributed to the aftermath of the Falcon-related outage. The aftermath of the faulty update not only affected customers but also tarnished CrowdStrike’s reputation, resulting in potential revenue setbacks and increased pressure to prevent such incidents in the future.
Customers stand to gain both advantages and uncertainties from the acquisition. While they can anticipate improved security and reliability from CrowdStrike’s platform following the integration of Action1’s technology, there may be concerns about potential changes in pricing, service delivery, and overall business strategy. Nonetheless, the deal is undoubtedly a strategic victory for Action1, confirming the value of its technology and providing a competitive edge in the cybersecurity sector. In an internal memo, Vovk stated, “This validates Action1’s position in a rapidly growing market and explains our hypergrowth as we march towards a $100 million ARR milestone.”