Cloud Data Security and Resiliency, Cloud Security, Events
Morgan Stanley's Hamza Foderwala discusses trends and opportunities in the cybersecurity market
Michael Novinson (michael novinson) •
May 15, 2024
Hyperscalers such as Microsoft, Amazon Web Services and Google are making their cloud environments more secure and building a robust partner ecosystem, said Hamza Foderwala, executive director of U.S. software equity research at Morgan Stanley. To this end, the company said it is stepping up acquisitions and investments in cybersecurity.
Related item: From CNAPP to CDR: The path to future cybersecurity
Mr. Foderwala said cybersecurity investment activity in North America is expanding against the backdrop of increasing threats and stricter regulations, but uncertainty such as concerns over the direction of interest rates and the spending environment has led investors to He said he was proceeding with caution.
“Given that this period of uncertainty continues for a little longer, we will see more capitulation from sellers,” he said. “Small and medium-sized enterprises, whether they are private companies or some small public companies, are thinking that perhaps they would be better off partnering with larger companies or responding to private equity bids because the environment is still somewhat tough. ”
In a video interview with Information Security Media Group at RSA Conference 2024, Foderwala also spoke about:
- Why defense sectors such as cybersecurity are more attractive to investors in times of uncertainty.
- Why a constrained customer spending environment fosters more strategic acquisitions.
- Competition between startups and established players for security solutions in the generative AI market.
Foderwala is an executive director at Morgan Stanley, where he leads cybersecurity stock market research. He joined the company in 2016 as his Vice President of Equity Research. Foderwala has more than 10 years of experience as an equity analyst, including stints at Stern Value Management and Susquehanna International Group LLP.
