Identity has become the new cybersecurity perimeter. As federal agencies rapidly adopt cloud services, AI-powered tools and hybrid work models, identity security is now central to mission assurance.

However, for many federal leaders, identity management remains a complex puzzle. The abundance of tools — from password managers to identity governance systems — often leads to fragmented environments and operational gaps. Even when agencies understand its importance, aligning identity investments with mission objectives remains a significant hurdle.

Adding to this complexity is a rapidly evolving environment in which cyber threats are becoming more sophisticated. AI-driven attacks mimic human behavior, bypassing traditional defenses with alarming speed. Static controls and perimeter-centric thinking can’t keep up. Identity governance, behavioral analytics and adaptive access controls must work in tandem to stay ahead of AI-enabled threats.

Federal agencies need integrated, adaptive identity architectures that continuously verify users and devices in real time. Implementing these layered protections not only improves security but also enhances user experience by adapting to risk in real time. In addition, agencies that adopt these capabilities are better equipped to defend against emerging threats without sacrificing efficiency.

A trusted partner for identity security

That’s where Optiv + ClearShark makes a difference. We bring a cybersecurity-first approach to identity, helping federal agencies reduce risk, meet compliance and streamline operations. Unlike one-size-fits-all providers, we help agencies optimize their existing investments — whether they use SailPoint, BeyondTrust, Ping or Okta. Our team understands how to integrate these technologies into a framework that fits the federal context. In other words, we tailor solutions to the mission, not the other way around.

In fact, our edge lies in our people. Many of our consultants and engineers are former federal employees with clearances and firsthand experience navigating agency environments. Their insights help bridge the gap between vendor capabilities and federal mission needs.

In the past 18 months, we’ve delivered managed identity services across the defense and intelligence communities. These solutions include secure monitoring and identity operations in highly classified cloud environments, supported through partnerships with AWS, Splunk and others.

By offloading infrastructure and operations to our cleared teams, agencies gained enhanced identity assurance and significant cost savings while maintaining full compliance with federal security standards.

Accelerating modernization with confidence

Modernization doesn’t need to come at the expense of security or compliance. A pilot-driven approach allows agencies to validate identity solutions in their own environments before scaling. This reduces risk, accelerates return on investment and ensures audit readiness.

For example, one civilian agency we supported had invested heavily in identity tools but continued to fail penetration tests and struggled with governance gaps between identity and security teams. By deploying SailPoint and BeyondTrust in a phased, integrated rollout and aligning the solution to compliance and security objectives, we helped the agency pass red team exercises, reduce manual identity processes and establish a scalable identity framework for future growth.

The mission starts with identity

Identity is the most targeted attack surface in federal IT today. Protecting it is not just an IT imperative; it’s a mission-critical requirement. But success requires more than tools. It requires deep expertise, integration and continuous improvement.

With the right strategy and trusted support, agencies can secure their identity infrastructure, meet audit requirements, and modernize with purpose. The stakes have never been higher, and identity has never mattered more in federal cybersecurity.

Learn more about how Optiv + ClearShark takes a cybersecurity-centric approach to identity management for government.

This article was sponsored by Optiv + ClearShark.

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Palo Alto Networks has agreed to acquire identity security firm CyberArk for approximately $25 billion, marking the cybersecurity giant’s largest acquisition and its formal entry into the identity security market as the industry continues consolidating amid rising cyber threats.

The transaction ranks among the largest technology acquisitions this year and underscores the market’s focus on identity security in an era of increasing artificial intelligence adoption.

CyberArk, founded over two decades ago, specializes in privileged access management technology that helps organizations control and monitor access to critical systems and accounts. The company’s customers include major corporations such as Carnival Corp., Panasonic, and Aflac. Its technology addresses what security experts consider one of the most vulnerable aspects of enterprise security: managing privileged credentials for both human users and machine identities.

The acquisition comes as cybersecurity companies face pressure to offer comprehensive solutions rather than point products, with customers seeking to streamline their vendor relationships following high-profile breaches. Recent cyberattacks, including Microsoft’s SharePoint vulnerabilities that affected over 100 organizations including U.S. government agencies, have heightened focus on identity protection and privileged access management.

For Palo Alto Networks, the acquisition represents a strategic expansion beyond its traditional network security roots. The company has evolved from a next-generation firewall provider into a multi-platform cybersecurity leader, and identity security represents what CEO Nikesh Arora describes as an inflection point in the market.

“The rise of AI and the explosion of machine identities have made it clear that the future of security must be built on the vision that every identity requires the right level of privilege controls,” Arora stated in a release.

The timing reflects broader industry dynamics driven by artificial intelligence adoption. As organizations deploy autonomous AI agents and systems, these technologies require sophisticated privileged access controls similar to human users, but at machine scale. The combined companies position themselves to address what they term “agentic AI” security, applying just-in-time access and least privilege principles to AI systems.

Industry analysts view the acquisition as addressing a gap in Palo Alto Networks’ portfolio while potentially accelerating growth in areas where the company has seen some deceleration. 

“Over the past several years, Palo Alto Networks has been on a mission to become a huge platform player in the security market,” said Allie Mellen, a principal analyst with Forrester. “Given its product portfolio as it stands today, identity security capabilities are a missing piece of that puzzle. This acquisition rounds out its approach, given its existing cloud, network, and endpoint security products.” 

The transaction follows other major cybersecurity consolidations, including Google’s $32 billion acquisition of Israeli startup Wiz earlier this year. This consolidation trend reflects customer preferences for integrated security platforms over managing multiple specialized vendors, particularly as cyber threats have grown more sophisticated and frequent.

Both companies’ boards have unanimously approved the transaction, which remains subject to regulatory clearances and CyberArk shareholder approval. The deal is expected to close during the second half of Palo Alto Networks’ fiscal 2026.

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