Zscaler, Inc. (ZS) Competitors: 2 Rivals In The Cybersecurity Sector

Zscaler (NASDAQ: ZS) is known as the gold standard for cloud-based companies and those with large numbers of remote workers. Zscaler also has tools that help clients defend against ransomware attacks. It offers the finest secure access service edge (SASE) in cybersecurity. Zscaler's customer base has increased over 50% between 2018 and 1Q21, to over 5,000 customers worldwide. Its revenue increased 44% between 2018 and 2020, with revenue in 2021 expected to increase by some 70%, to over $600 million. Zscaler's future is bright, with tenfold projected growth because of the number of companies switching to cloud-based computing and an increase in the number of remote workers.

PALO ALTO NETWORKS (NASDAQ: PANW)

Palo Alto Networks and Zscaler operate on a similar business model. The difference is in each company's target market. Zscaler is working with cloud-based companies while Palo Alto is targeting businesses that are not exclusively cloud-based. Like Zscaler, Palo Alto has built a suite of products around its primary platform, known as the "next-generation firewall."

One of Palo Alto's strengths is in melding acquisitions into its core company. Palo Alto has acquired 16 companies since 2014 and each has become an integral piece of the overall company. Palo Alto's fiscal first quarter ended on October 31, 2020. It had a revenue increase of 23%, to $946 million. Palo Alto is projecting revenue of $4 billion for all fiscal 2021, which would be an increase of 20%.

CROWDSTRIKE HOLDINGS INC (NASDAQ: CRWD)

Crowdstrike is considered the top company in cybersecurity. The reason is Crowdstrike's wide range of products and services. It has a platform that will protect both cloud and on-premises computers and servers. Crowdstrike uses data and artificial intelligence to defeat hackers and ransomware attacks. It has been involved in the discovery and identification of threat actors in cases ranging from the Sony Pictures hack by North Korea to the Chinese hackers who attacked American technology and pharmaceutical companies. Crowdstrike has identified China as being responsible for over 25% of attacks coming from state-sponsored actors.

Crowdstrike's 1Q21 revenue increased 70% over that of 1Q20. Its market cap is now at $60 billion and is expected to reach $100 billion within the next three years.