Analysts at JPMorgan said in a research note Monday that they think Security Software vendors that compete with Microsoft (NASDAQ:MSFT) in their core markets will benefit from the recent breach.
The comments come after Microsoft disclosed a breach of its corporate systems Friday afternoon after market close.
"Some may interpret the exploit as relatively benign, but we think the breach could drive greater levels of caution with regard to relying too heavily on Microsoft for security," the analysts said.
The analysts mentioned that their firm believes security Software vendors that will benefit from the breach include CrowdStrike Holdings Inc. (NASDAQ:CRWD), SentinelOne , Inc. (NYSE:S), Palo Alto Networks (NASDAQ:PANW), and Okta, Inc. (NASDAQ:OKTA). In addition, they also see a benefit for CyberArk Software (NASDAQ:CYBR) as the "breach may serve as another event that drives greater awareness of the need for Privileged Access Management."
"Competition from Microsoft often comes up in conversations as the company has established a substantial security franchise, accounting for over $20bn of revenue and over $4bn of R&D annually, accounting for a meaningful share of Endpoint and Identity markets in particular," the analysts added.
"However, customers still need to balance cost with risk and we could see this latest breach generate concerns from customers and partners regarding risk associated with Microsoft's own security posture, the effectiveness of its own security technology, and the scale of attacks the company needs to manage as a highly targeted platform."