Palo alto networks and ntt data launch $1 billion AI security initiative

An AI agent operating within a bank or hospital system continuously interacts with databases, transfers files, and invokes other software without human intervention. It requires credentials, similar to those used by employees. In February, Palo Alto Networks reported that enterprises typically have over 80 machine accounts for every human account, yet most security teams lack visibility into these accounts, making it difficult to track access to critical systems. To address this, Palo Alto Networks and NTT DATA have announced a multiyear global alliance aimed at achieving $1 billion in combined business by the end of 2029. The partnership combines Palo Alto’s security platforms with NTT DATA’s consulting and managed services to help clients evaluate cyber risks, implement AI securely, and manage ongoing controls. NTT DATA stated that the $1 billion figure represents the total value of customer contracts and orders the two companies will jointly sell over the period, including product, subscription, integration, and managed services revenue. Neither company provided further financial details. Palo Alto Networks confirmed the definition but declined to share additional financial specifics due to a quiet period ahead of its fiscal fourth-quarter results, scheduled for September 1. The $1 billion target reflects combined sales across both companies’ books rather than new revenue for either. Neither firm disclosed the current value of the joint business. The alliance is described as backed by "joint investments," though the exact amount remains undisclosed. Palo Alto Networks projected approximately $11.4 billion in revenue for its 2026 fiscal year. Split over three years and two balance sheets, the $1 billion target indicates the companies’ strategic focus, rather than current earnings. The two firms were already collaborating, with NTT DATA among five launch partners in Palo Alto’s Frontier AI Alliance in April, alongside Accenture, Deloitte, IBM, and PwC. The group has since expanded to include over a dozen firms, such as Infosys, Wipro, TCS, and McKinsey. Palo Alto Networks noted that the earlier alliance was focused on securing AI deployments and frontier models, while the new agreement spans its full portfolio globally. Chairman and CEO Nikesh Arora stated that the expanded alliance enables the company to "operationalize platformization at true global scale," a term referring to moving customers from a fragmented set of security tools to a single vendor’s integrated solution. NTT DATA described the new agreement as a further step, emphasizing that the Frontier AI Alliance created the ecosystem, while this partnership establishes a dedicated go-to-market and delivery model between the two companies. Being one of thirteen partners is distinct from having a joint engineering roadmap, early access to unreleased platform features, and a shared revenue target.