The billionaire founder of Palo Alto Networks started a new cybersecurity company. Here's why many people are calling it 'crazy.' (www.businessinsider.com)

Nir Zuk, the billionaire founder of Palo Alto Networks, has launched a new cybersecurity startup called Cylake, aimed at serving highly regulated organizations that cannot use cloud-based services for sensitive data. Rejecting the prevalent cloud model, Cylake will employ an AI-powered, hardware-based security system, positioning itself to meet the needs of government entities and defense contractors. Zuk argues that a significant portion of the market—approximately one-third—has been overlooked in the rush to cloud solutions, leaving many critical customers with outdated technology. Cylake is backed by $45 million from Greylock Partners, the same venture capital firm that invested in Palo Alto Networks during its early days. Zuk, alongside seasoned co-founders from his previous venture, envisions a "hundred billion dollar plus opportunity" in providing robust security solutions for sectors unable to migrate to the cloud. His return to hardware-centric cybersecurity comes amid escalating cyber threats and a surge in funding for startups in this space, indicating a potential shift in market dynamics as organizations increasingly prioritize data security in the face of evolving challenges.