The massive CrowdStrike-caused outage in July continues to represent a ‘competitive tailwind’ for SentinelOne in its growth initiatives, a TD Cowen analyst tells investors.

SentinelOne’s surging growth in cloud security and the CrowdStrike-caused outage in July are positioning the cybersecurity vendor to continue to see further gains in market share, a TD Cowen analyst told investors Friday.

The massive Microsoft Windows outage caused by rival CrowdStrike, in particular, continues to represent a “competitive tailwind” for SentinelOne’s growth initiatives, wrote Shaul Eyal, a managing director and senior analyst at TD Cowen, in a note to investors Friday.

[Related: SentinelOne CEO On CrowdStrike Outage: ‘Not Just An Honest Mistake’]

Eyal provided his comments after SentinelOne wrapped up its OneCon 2024 event in Las Vegas, where the company disclosed it has crossed $100 million in annual recurring revenue (ARR) for its cloud security business.

It’s now clear that cloud security is a “significant business” for SentinelOne, which has moved aggressively into the space over the past year, including through its acquisition of application protection specialist PingSafe in January.

The vendor’s data business, meanwhile, is also surging with ARR now reaching $70 million, the company revealed this week. The business includes SIEM (security information and event management) and SentinelOne has been growing in the segment through a “combination of legacy displacements” along with “greenfield opportunities,” Eyal wrote.

Meanwhile, the massive global Windows outage that began July 19—caused by a faulty CrowdStrike update—remains a component of SentinelOne’s pitch to partners and customers, according to Eyal.

SentinelOne’s leadership “sees CRWD’s outage as continuing to drive conversations with potential customers and partners alike,” Eyal wrote. “In our view it represents a current competitive tailwind assisting [SentinelOne’s execution] against some of its key initiatives to drive growth and share gains in the mid-term.”

As one partner of both security vendors told CRN this week, there are undoubtedly still “some hurt feelings” that persist among customers over the July outage, despite CrowdStrike executives’ efforts to put the incident behind them.

Some customers have expressed interest in exploring alternatives to CrowdStrike after the outage, and in all likelihood there will continue to be “real competition” from other vendors including SentinelOne over the issue, said Nicholas Scarsella, CEO of Tampa, Fla.-based Imperium Data.

Lenovo Partnership

Notable growth initiatives for SentinelOne include a recently unveiled partnership with Lenovo, which has pledged to embed SentinelOne’s Singularity Platform in new PC shipments as part of a “multiyear collaboration.” Eyal wrote that he expects the deal to “expand Singularity’s market presence via direct installations over the next four years.”

“Being embedded in Lenovo’s ThinkShield B2B offering the partnership could significantly elevate [SentinelOne’s] brand and drive share gains in endpoint security on the expense of legacy providers such as Trend Micro, BRCM, Trellix, MSFT, others,” Eyal wrote.

All in all, the developments “support our view that [SentinelOne] remains well-positioned for sustained [long-term] profitable growth,” he wrote.