Action1’s expertise in patch management aligns well with CrowdStrike’s current need to enhance its update mechanisms. By integrating Action1’s technology into its platform, CrowdStrike could significantly improve the testing and deployment of updates, something it faced widespread criticism for in the months following the Falcon goof-up.

Implications for customers

The $1 billion valuation is a substantial investment for CrowdStrike and could be viewed as part of the broader costs associated with the Falcon-induced outage. The disruption caused by the faulty update not only impacted customers but also damaged CrowdStrike’s reputation, leading to potential revenue losses and increased pressure to ensure such an incident doesn’t happen again.

For customers, the potential acquisition could bring both benefits and uncertainties. On one hand, they can expect enhanced security and reliability from CrowdStrike’s platform, thanks to the integration of Action1’s technology. On the other hand, there may be concerns about how the acquisition will impact pricing, service delivery, and overall business strategy. In any case, the deal is a definite strategic win for Action1, as it validates the value of its technology, providing an advantage in the competitive cybersecurity landscape. “This proves that Action1 is in a rapidly growing market and explains why Action1 is experiencing hypergrowth and is on track to soon reach $100 million ARR,” Vovk said in the internal memo.