Palo Alto Networks and NTT DATA Target $1 Billion AI Security Alliance

Palo Alto Networks and NTT DATA announced a multiyear global alliance on Thursday, aiming to generate $1 billion in joint business by the end of 2029. This partnership combines Palo Alto Networks' security platforms with NTT DATA's consulting and managed services to address the growing cybersecurity risks associated with artificial intelligence deployments within enterprise environments. The alliance will assist clients in assessing cyber risk, securely deploying AI, and managing the subsequent controls.

The initiative is designed to tackle the complex security challenges posed by AI agents, which, unlike human employees, operate autonomously, query databases, move files, and interact with other software. These agents require credentials, and enterprises often struggle to maintain a comprehensive inventory of these machine accounts. Palo Alto Networks previously reported that enterprises typically have over 80 machine accounts for every human account, many of which security teams cannot fully identify or manage, leading to potential vulnerabilities in sensitive systems. The joint offering from Palo Alto Networks and NTT DATA seeks to provide a solution for this critical gap.

The $1 billion target represents the total value of customer contracts and orders the two companies intend to sell collaboratively over the five-year period, from 2025 to 2029. This figure encompasses both product and subscription revenue, as well as services, integration, and managed services. NTT DATA clarified that this is a combined sales target across both organizations' existing business rather than entirely new revenue streams for either company. Palo Alto Networks confirmed this definition and declined to provide further financial specifics due to an upcoming quiet period before its fiscal fourth-quarter results, which are expected around September 1. Neither company disclosed the current value of their joint business, indicating that the $1 billion figure reflects their future aspirations rather than current achievements.

While the specifics of "joint investments" backing the alliance were not detailed, the partnership builds upon existing collaboration. NTT DATA was already a participant in Palo Alto Networks' Frontier AI Alliance, launched in April, which included five initial launch partners. This new, broader alliance signifies a deepening strategic commitment to addressing the evolving cybersecurity landscape driven by AI technologies. The companies aim to provide comprehensive solutions that enable organizations to leverage AI safely and effectively, mitigating the inherent risks associated with autonomous digital entities and their access to critical data and systems.