Palo Alto Networks chief executive officer talks ‘platformization’ packing method: ‘there’s no going back’

After Palo Alto Networks reported an incomes beat on Monday, CHIEF EXECUTIVE OFFICER Nikesh Arora informed CNBC’s Jim Cramer concerning his business’s “platformization” method, claiming it is very important for the cybersecurity attire’s lasting success.

“It doesn’t matter whose platform you buy, you can’t go back. You can’t go back to point solutions and start stitching them. It’s like, it’s like a one-way street — once you come this way, there’s no going back,” Arora claimed. “So, our incentive is, when we have the technological advantage, the platform, we’ve got to get ahead of this, we’ve got to move fast, we’ve got to get our customers onboarded with this, which allows us to win the long term game.”

“Platformization” is basically a packing of the business’s services and products, and Palo Alto had actually reduced its full-year advice back in February due to its pivot to this method. But hereafter quarter, Arora claimed he’s thrilled concerning the rate of “platformization,” which he wanted the business had actually made the transfer to the method previously.

The business claimed in its profits discussion that its organization in the previous quarter was drive by “early momentum in platformization.”

Arora likewise talked about Palo Alto’s expert system solutions, declaring that the business has actually succeeded in offering concrete AI solutions to clients.

“We’re very excited, we crossed $200 million in ARR in AI, real AI, selling products to our customers—this is not ideas, thoughts, things we’re trying,” he claimed.

Palo Alto reported profits after close, and the supply was up greater than 2.5% in after hours trading.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Palo Alto Networks.