Alphabet, the parent company of Google, is once again in advanced talks to acquire Wiz, a cloud cybersecurity startup, according to a person familiar with the deal. The two companies were close to securing a deal last summer, but the transaction failed to materialize. This time, the price being discussed is reportedly around $30 billion, a significant premium over Wiz's previous valuation.

The acquisition would be a strategic move for Google Cloud, which sees Wiz's cloud security products as a good fit for its customer base. Wiz's annual recurring revenue (ARR) is also attractive, standing at $500 million last July with plans to hit $1 billion in ARR in 2025. Thomas Kurian, head of Google's cloud division, is leading the effort to acquire Wiz.

Wiz, founded in 2020 by four former Israeli military officers, has gained significant traction in the cloud cybersecurity space. The company's valuation has jumped from $12 billion in May last year to $16 billion in an employee tender offer late last year. Despite its growth, Wiz has no plans to take itself public in 2025, but the hiring of Fazal Merchant, a former executive at Dreamworks and Tanium, as chief financial officer may indicate otherwise.

The previous talks between Alphabet and Wiz broke down due to disagreements over whether Wiz would remain a separate division or be integrated into Google Cloud. High regulatory scrutiny for large transactions during the Biden administration also contributed to the deal's breakdown last summer. However, with the hope that FTC Chair Andrew Ferguson will be less restrictive on large transactions than former Chair Lina Khan, investors are seeing an increase in M&A activity.

Wiz's backers, including Andreessen Horowitz, Cyberstarts, Index Ventures, Insight Partners, and Sequoia, will likely benefit from the acquisition. A spokesperson for Wiz declined to comment on the deal conversations. If the acquisition goes through, it would be one of the largest in the cloud cybersecurity space, further solidifying Alphabet's position in the market.

The acquisition would also have broader implications for the cloud computing industry. As more companies move to the cloud, cybersecurity becomes a major concern. Wiz's products would provide Google Cloud customers with enhanced security features, making it a more attractive option for businesses. The deal would also put pressure on other cloud providers to strengthen their security offerings.

In conclusion, the potential acquisition of Wiz by Alphabet would be a significant development in the cloud cybersecurity space. With Wiz's products and expertise, Google Cloud would be well-positioned to take on the growing demand for cloud security. As the deal progresses, it will be interesting to see how it shapes the cloud computing landscape.