Lacework
Cloud security analytics platform now sold as FortiCNAPP inside Fortinet.
On the record
Checkpoint: Fortinet's next earnings calls, watch for FortiCNAPP growth disclosure or silence
The call
Lacework now exists as a Fortinet product line fighting for roadmap priority against a rival nearly five times its size.
Lacework helps companies scan their cloud environments for security problems. It lost the race to a faster-growing rival called Wiz because cloud-security scanning is becoming easier to build (any security company can now add it) and AI chatbots are getting better at sorting through false alarms, which was Lacework's main selling point. The real question is whether Fortinet, the company that bought it, will actually invest in growing Lacework or just let it sit quietly as part of their product bundle while they chase other deals.
Why
01
AI pressure: Wiz and generic LLM-based alert triage tools. LLM triage now does the noise-reduction Lacework built its pitch on, so the core trick stops being special. Could AI do the core job? Only partly.
02
Bigger players: Wiz, backed by Google Cloud distribution, plus Palo Alto Prisma Cloud and CrowdStrike Falcon. Wiz runs 4 to 5 times Lacework's ARR and keeps pulling cloud security deals Lacework used to win. Could a giant copy it? Yes, easily.
03
What protects it. Fortinet's existing firewall and network customer base gives FortiCNAPP a bundled sales channel Wiz doesn't have.
What would change this call
Fortinet's next 2-3 earnings calls mention or omit FortiCNAPP growth metrics. Silence would suggest FortiCNAPP is now just a bundle add-on, not a growth priority.
Whether Fortinet ships new FortiCNAPP modules beyond the January 2026 DSPM launch. Continued feature releases would show active investment rather than maintenance mode.
Departures or retention news among former Lacework engineering leadership. Further exits would indicate the acquired team and expertise are dissolving inside Fortinet.
Whether Fortinet ships new FortiCNAPP modules beyond the January 2026 DSPM launch. Continued feature releases would show active investment rather than maintenance mode.
Departures or retention news among former Lacework engineering leadership. Further exits would indicate the acquired team and expertise are dissolving inside Fortinet.
Key numbers
- Sold for ~$150-200M after $8.3B peak valuation
- ARR ~$70-90M vs Wiz's $350M+
- Headcount down ~35% from 2022 peak
Named risks
- FortiDevSec tool overlap may lead to Lacework SAST/SCA components being deprecated.
- Uncertain internal roadmap priority as a Fortinet business unit vs core growth pillar.
- Customer migration and rebranding to FortiCNAPP flagged as disruption risk (2026-02).
- Wiz's 4 to 5 times larger ARR continues to pressure FortiCNAPP market share.
- Key leadership turnover, including CEO departure to Microsoft in October 2024.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Wiz | losing to | Wiz $350M+ ARR vs Lacework $70-90M ARR at time of 2024-06 Fortinet acquisition deal |
| CrowdStrike | gaining on | Shipping AI-native Falcon platform extending into CDR and cloud, per 2025 Threat Hunting Report |
| Palo Alto Networks (Prisma Cloud) | contesting | Incumbent giant in CNAPP space contesting same enterprise cloud security accounts |
| Orca Security | contesting | Agentless CNAPP peer valued at approximately $1.8 billion competing for same market |
Questions people ask
- Is Lacework still an independent company?
- No. Fortinet completed its acquisition of Lacework on August 1, 2024, and rebranded the product FortiCNAPP. The lacework.com domain now redirects to Fortinet's site, and Lacework operates only as a Fortinet business unit within the Fortinet Security Fabric.
- Who owns Lacework now?
- Fortinet, Inc. (NASDAQ: FTNT) owns Lacework, having completed the acquisition on August 1, 2024. The product line was rebranded FortiCNAPP and folded into Fortinet's broader Security Fabric alongside FortiGate, FortiWeb, and FortiSOAR.
- Is Lacework's biggest competitor Wiz?
- Yes. At the time of Fortinet's June 2024 acquisition announcement, Wiz had reportedly reached $350M+ ARR versus Lacework's estimated $70 to 90M ARR, a roughly 4 to 5 times gap that helped push Lacework toward a distressed sale, per CRN reporting.
- How much did Lacework's valuation fall before being sold?
- Lacework peaked at an $8.3B valuation in its November 18, 2021 Series D round, then sold to Fortinet on August 1, 2024 for an estimated $152.3M (Sacra estimate), a roughly 98% collapse in under three years.
- Could AI replace Lacework's core product?
- Lacework's own pitch, 100:1 alert reduction via behavioral ML, is itself an AI workflow now facing commoditization risk: generic LLM-based security alert triage from frontier labs threatens to erode the differentiation that once justified its valuation, per the evidence brief's competitive analysis.
Timeline
- 2026-01FortiCNAPP adds DSPM module for AI-based sensitive-data discovery and classification
- 2025FortiCNAPP named Leader in KuppingerCole 2025 CNAPP Leadership Compass
- 2025Fortinet acquires Everest, continuing security platform consolidation
- 2024-10-31CEO Jay Parikh departs Fortinet/Lacework for Microsoft senior leadership role
- 2024-08-02Fortinet completes acquisition of Lacework, rebrands it FortiCNAPP
- 2024-08Fortinet acquires Next DLP amid platform consolidation
- 2024-06-10Fortinet announces definitive agreement to acquire Lacework
- 2024-04-02Lacework launches Explorer, new dashboards, expanded Composite Threat Detection
- 2022-10Co-CEO David Hatfield departs Lacework
- 2022-05-27Lacework lays off approximately 20% of staff, about 200 employees
Revision history
21 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Fortinet Completes Acquisition of Lacework (2024-08-02)
- Lacework Raises $1.3 Billion at $8.3 Billion Valuation (2021-11-18)
- Lacework revenue, valuation & funding
- Fortinet Completes Acquisition Of Former Cloud Security Unicorn Lacework
- Why Lacework Is Examining a Sale to Wiz (2026-07-05)
- Microsoft names Jay Parikh as a member of the senior leadership team (2024-10-31)
- Lacework Lays Off 20 Percent Of Staff Six Months After Raising $1.3B
- Lacework cuts 20% of workforce after raising $1.3b (2022-05-27)
- Fortinet Acquires Lacework (2024-06-12)
- Cloud Security by Fortinet (2026-02-13)
- wikipedia.org (Fortinet entry) (2026-07-20)
- CrowdStrike 2025 Threat Hunting Report (2025-01-01)