I want to make it this quarter of Palo Alto Networks. After the close, stock's been all the way up, then come all the way down, kind of just going around. Let's go right to the source. He's the Chairman and CEO of Palo Alto Networks. Learn more about the quarter and what comes next. Mr. Arora, welcome back to Mad Money.
Jim, nice to see you again.
Okay, so in the last 90 days, how do people figure out what you knew was true from the beginning?
I don't know, Jim. I think we just finished our conference call, and I think we declared the dead for cybersecurity officially.
Well, it's very clear that it's been a boon for you, particularly because you've got a couple of things going. Everybody needs to be privileged now because there's millions. We got machines all over the place, and they've got to be stopped. And I don't know who else has a solution like you.
Well, look, I think what we've seen, a lot of people have discussed Mythos in different public environments. And I think what is very important to understand, AI has the capability to understand bad code. AI has the capability to take vulnerabilities, stitch them together, and figure out a way to attack cyber infrastructure. Now we have to find antidotes to that. There is no easy way around it. The antidote in the short term is a lot of testing, a lot of blocking and tackling, which I think a lot of people are trying to do. As we speak, lots of consulting companies that are involved, cybersecurity vendors are involved. But remember, these models have a 30% false positive. So when you think it found something, it may not have found something, it may not have found something it should have found. So there still needs a lot of cybersecurity capability and expertise had to be brought to bear to figure out where the problems are solved. And that's the short term problem. But this does prove is there is only one long term solution is to consolidate platforms, bring all your cyber data in one place, and fight AI with AI. And that's become apparent to not just the market and to everyone in the last, I think, 90 days or so that, you know, we are a net enabler of better cybersecurity. We're not a victim of amazing AI that's going to happen in the future.
I mean, there are some daunting things. When I read your stuff, sometimes I just I'm not like David Faber. I'm not scared out of my wits about it, so to speak, although he's okay. But machine identities, 109 to 1. That's how many machine identities there already are.
There they are. Look, there are service accounts, there's agents. There's all kinds of non-human identities that are out there which are doing stuff in the back. They're talking to each other. Now, as you look at your cybersecurity, if you look at it, enterprise, you have humans, you have machines, you have agents, you have got to manage all of them because any of them that's unmanaged becomes a potential attack vector. So that was our thesis for buying CyberArk, because CyberArk is the only true identity security company that actually stops things from happening, not just keeps track of them or catalogs them. We figured that was in pole position to build this capability to help us manage the entire enterprise. From identity perspective, we relaunched it and built more products under the brand Idera three months ago. And as you saw from our results, we seem to be making good progress in the first quarter. Having CyberArk as Palo Alto, we have amazing plans for them going forward, but it's going to be crawl, walk, run, get them amazing, build more capability, get out and make sure every customer has that capability.
Now it's got to be that these particular gremlins, if as smart as they are, if you don't have a platform, won't they find the crack and get in? Won't that be something that they are programmed to do?
Well, Jim, you know, if one thing the last two years has taught us is more data gives you better AI, that's obvious, right? If you look at all these models, you're saying, let's train them more and more parameters, more and more bits, because the more bits you put into training, the better the outcomes are. Every enterprise is chasing, let me get more data. You have, you know, companies that do training data, they're flying into the stratosphere because they're helping train models to get better and better and smarter. Guess what? Cybersecurity needs the same thing, which means you have to bring all the data together in one place, train your models so they can fight the aggressors of AI. And there are very few companies out there which are providing platforms that allow you to integrate data and allow you to have a whole bunch of capabilities under one roof. And that's Palo Alto Networks.
