A day after posting an FQ2 beat, Palo Alto Networks (PANW -0.2%) has announced it's forming a new reseller deal with VMware (VMW, EMC), and that the companies have begun offering a solutions that meshes the former's virtualized next-gen firewall (runs on servers making use of virtualization software such as VMware's) with the latter's NSX network virtualization/SDN platform (announced last year)
Palo Alto and VMware assert the solution, which also features management software and security services, allows for a single point of management for security services, policies, and threats. Earlier this month, Palo Alto expanded its partnership with Citrix to cover its virtualized firewalls.
Palo Alto shares have largely shrugged off a valuation-driven downgrade to Hold from Gabelli today. The firm is upping its FY14 (ends in July) revenue estimate by $12M to $574M in response to the FQ2 report, but considers Palo Alto's fair value to be $70/share (7x FY15E EV/sales).