Award Context and Insight

05/16/2021 6:57 PM

Catalyst Watch: Zscaler, McAfee, Google May Soon Pass DOD Cloud Security Milestone

Background: Zscaler, McAfee, and Google in May 2020 were each issued contracts to test cloud security solutions with a small Pentagon agency called the Defense Innovation Unit (DIU). Now, the prototype program is concluding and the agency is reportedly close to announcing results.

Outlook: While only one of the companies will be awarded a contract to continue providing its cloud security solution to DIU, all three could receive "success memos" that would allow them to market their solutions to larger components of the DOD.

  • The key outcome for all the contenders is the "success memo."
  • Companies receiving this form of validation will be able to sell their solutions into other parts of the DOD without further competition, which is likely to speed adoption by larger Defense Department entities.
  • The new contract with DIU is likely to be small because the agency has only a few hundred employees.
  • There's no precise guidance on the timing of an announcement from DIU. We think it could come anytime from now through June.

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