It’s an opportunity that allows us to make the world a better place by making sure that our customers can be secure. So as I said, you will notice in the next three to five years, we will continue to transform Palo Alto Networks from where we are to where we would like to be. We will continue to focus on the demand function at the top. We believe the market is continuing to inflect, as I said, in the area of security operations. It’s highly likely that some of the other steady areas are going to see some inflection as well. We’re going to continue to relentlessly innovate and keep making our platforms more ubiquitous. We’re going to make sure that we can deliver the amplification from our go-to-market teams. And also, we’re going to make sure that we have the best team in the industry to deliver solutions to our customers.
I couldn’t be more excited about the prospects of Palo Alto Network. I couldn’t be more excited that we are seeing tremendous success in our software-driven capabilities. I think we are going to continue to be able to transform this company from where we started as a hardware vendor to a software-delivered security with real-time security outcomes. I believe we will continue to be the best cybersecurity partner of choice for our customers. With that, I’m going to hand over to Lee because he’s going to show you some really cool stuff, which is hopefully going to excite you about our ability to deliver the future we’ve talked about.
Lee Klarich: Thank you, Nikesh. Now in a second, we’re going to go into more detail on our three leading platforms. But first, I want to share some context. After all, we’re a cybersecurity company, what’s happening in the threat landscape. And I’ll just give you the really obvious answer, it’s bad. The threat landscape is intensifying. $8 trillion of cost due to cybercrime. Attackers are becoming very sophisticated with the tools they use, whether that’s automation, attacking the supply chain, et cetera. And just the sheer volume is off the charts, growing about 20x since 2011 to over 1 billion new malicious programs. This is incredible. So clearly, that is a challenge, but it’s even more challenging than that. It wasn’t that long ago when it took an attacker on average about 44 days from initial compromise to exfiltration.
Now 44 days is basically the time period that an organization would have to detect, disrupt and potentially prevent the breach from happening. So in 44 days goes down to hours, which is what we’re now starting to see. That is a huge problem. That requires a very different approach. But on average, the industry is able to respond and remediate attacks in about six days. That doesn’t work. And even more challenging now with the SEC new rules of being able to disclose within four days, none of the math adds up. Now before we get comfortable in just solving these problems, there’s one more challenge coming. Attackers have recognized the power of AI, just as much as everyone else has recognized the power of AI to do good things. Whether it’s fraud GPT or worm GPT or other use of AI, it is clear this is going to become the next major tool used by attackers to launch more attacks, more sophisticated attacks and faster attacks.
So we have to innovate. And we recognize that, Palo Alto Networks was built for innovation from day one. And today, we have over 4,400 product, engineering and other experts that are building and driving innovation. And you see just how fast we’ve ramped that over the last several years. In part, by being able to scale our organization across three main R&D centers in the world. In addition to this organic innovation engine we’ve built, we look at about 250 private companies every year to identify the absolute best teams, the absolute best technology that could become part of Palo Alto Networks in order to further drive our innovation engine. And we combine these two together, and we will continue to combine them together to have the best innovation capability.
And then we combine that with AI. We recognized really how important AI would be to our innovation. And over the last several years, we have been infusing AI into our products in very unique ways to solve very challenging problems that only AI can. And from this foundation, we’re only going to do more and better. We are going to accelerate our pace of innovation even further. We are going to leverage our proven playbook around M&A to be able to augment what we do organically. And we are going to take our capabilities in AI and turn that into an AI-first company. And why I’m so confident in our ability to leverage AI is we’ve built the right data foundation, we’ve combined that with the right architecture, and we’ve leveraged an amazing set of expertise across all of that.
We collect more data per customer than anyone else, security data, relevant data for AI. We combine that with an architecture that over the last several years, we’ve been migrating every product into a cloud-based architecture because we know that, that sets us up to use AI in everything we do. And today, I have a team of over 150 AI experts that I can leverage across all three of our platforms to identify and drive even more AI capabilities and innovation. That’s how we do innovation. How the industry does innovation is very different. The industry tends to look at this in the context of point products. Every time there’s a new need, there is a new point product. This leads to incredible complexity for end customers. Think about having to stitch all of this together.
Now it does create a large security market of about $210 billion, but it means that there is an incredible opportunity for disruption. And for a disruptive and innovative approach, which is why we’ve taken our platform-oriented approach because we recognize that the only way to achieve the real-time security outcomes that our customers need is by integrating natively all of those capabilities into a set of very focused platforms, around Zero Trust, code to cloud and security operations. In a moment, we’ll go into detail on that. But last and certainly not least point, not all platforms are created equally. I shared with you how we think about innovation because that is so fundamental to the outcomes of our platforms. In addition to that, our platforms are designed to be as comprehensive as possible.
It doesn’t mean we do everything, but it means that we do all of the core set of capabilities necessary such that we can then selectively integrate and enable third-party technology to complement the platforms. Everything we do is integrated. It’s designed to solve hard problems through integration that cannot otherwise be solved with point products. And that combination enables our platforms to be real time and enable real-time security outcomes for our customers. So with that, let’s start our first deep dive with our Zero Trust platform. It’s very clear in the network security market, what’s happening. The point product approach that we’ve been fighting for so long as a company is getting harder and harder to sustain. There’s more technologies, more capabilities needed.
