RedLock

Palo Alto Networks bought RedLock because it covered all three major clouds. Palo Alto first bought Evident.io, which worked only on Amazon, and then bought RedLock, which worked on all three clouds. Nikesh Arora suspects the Evident.io purchase came too early.

Arora arrived after the Evident.io deal. He now weighs price, stage and conviction before buying in an emerging space: whether he is convinced the space will be big, whether to build or buy, how long the target has been around and how expensive it will get.

David Senra▶ 31:25

Funding conditions can make an equally early company several times pricier. Arora notes that a company that cost a third or a quarter of today's price three years ago may be just as early but far more expensive now.

His summary: "It becomes a question of price, stage, and conviction."

David Senra▶ 31:25