“Scarcity encourages you to be resourceful. It allows you to do a lot more with a lot less,” said Nikesh Arora, the CEO of Palo Alto Networks Inc., a US-based multinational cybersecurity company. Arora, in a candid conversation with Karishma Mehta of Humans of Bombay, opened up about his journey – from formative years to becoming the CEO of Palo Alto.
The tech leader spoke about his humble beginnings in India and his views on the new wave of AI that has gripped the world. Arora, born in Ghaziabad, revealed that he grew up in a disciplined household which was a reflection of his father’s role in the Indian Air Force. “Growing up, we kind of moved around every few years. That brings a degree of adaptability to your life,” he said. His early years were marked by constant change and values passed down from his father: fairness and integrity.
Talking about his earlier years, the CEO revealed that his academic journey led him to Banaras Hindu University (BHU), where he pursued engineering. However, a chance detour altered his future. “I was going to watch a movie the day of the CAT exam for IIM,” he told the host. Further into the conversation, Arora revealed that instead of India, he aimed for US business schools with a meagre $100, opting for institutions that waived application fees. He added Northeastern University in Massachusetts, US, but it also offered him a scholarship. “They offered to let me teach computer science. So I had to learn it that summer.”
Reflecting on his financial journey, the CEO revealed that it was not any easier. He recalled the days when he was borrowing from his father’s pension fund. “I was scraping around, teaching nights, doing all kinds of fun stuff just to survive.” Arora shared that after graduating, he witnessed one of the toughest phases in his life. “I sent 400-plus applications and got rejected 400-plus times. I saved all the rejection letters. They’re my motivation,” he said.
The IIT BHU alumni shared that his breakthrough happened in 1992 when he began his career at Fidelity Investments. Here, he held varied positions, eventually becoming the vice president of Fidelity Technologies. During the conversation, Arora revealed that despite receiving negative feedback about his suitability for high finance, he persevered. He went on to earn a master’s degree and CFA certification, eventually teaching a CFA course that subsequently led to his next opportunity.
Google and SoftBank
Arora’s ascent from there has been meteoric. In 2004, he joined Google when the company was barely post-IPO. He described his beginning at Google as “amazing, like being in a rocket ship”. In the next decade, he was instrumental in Google’s revenue growth from $2 billion to over $60 billion.
When asked why tech companies were failing, Arora said that they were failing because they stopped paying attention to product. “If you don’t build a great product, your company will eventually die.”
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After 10 years at Google, Arora said that he felt the urge to move on. “I wanted to do something different,” he told Mehta. This led him to SoftBank and its charismatic founder, Masayoshi Son. Talking about Son, Arora said, “Masa is someone whose risk appetite increases with age—that’s rare.” The CEO said that Son taught him something simple yet profound – don’t waste your time trying to fix bad investments. Focus on where you’re already winning.
However, not all his decisions aligned; the CEO revealed that he was sceptical of investing in WeWork. “I saw it as a tech-enabled real estate company. There’s infinite real estate in the world. I didn’t think the market would give it a premium.” On ARM, too, he initially missed the bet.
Talking about his exit from SoftBank, Arora revealed that it was mutual. “Masa had a 10-year life plan and was supposed to step back at 60. But when the time came, he wasn’t ready. I wasn’t in a place to wait another 10 years,” adding that he continues to maintain an amicable relationship with Son.
Later, after a sabbatical, Arora joined Palo Alto Networks. “I tried learning golf. I got worse at it. I realised I needed to sink my teeth into something.” When Arora took over, the company was valued at around $18 billion; as of today, it’s over $100 billion. When asked what he attributes his growth to, Arora credits his growth to timing and clarity of vision.
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“Cybersecurity is a growing market. The more we rely on technology, the more our attack surface expands.” Arora took the company toward cloud and AI early on, emphasising constant innovation. “If we can’t build it, we’ll partner or buy.”
One of the most noteworthy qualities of Arora is that despite his stellar journey, he remains grounded. “Nobody likes rejection… But part of growing up in India is believing in destiny. It helps you rationalise failure. “Everything happens for a reason.”
On the rise of AI
During the conversation, he also revealed his experience with ChatGPT, which left a lasting impression on him. When asked about his views on AI and India, Arora reflected on both the opportunity and complexity. “There’s a mad rush in the US to build massive compute clusters, even exploring nuclear energy to power $500 billion infrastructures. Meanwhile, models are commoditising and going open-source. The question is, “Where will the true value of AI lie?”
For India, Arora believes that the opportunity lies in localising AI. “You’ll be able to rent powerful models eventually, but differentiation will come from localised data and domain knowledge – our languages, our traffic, our culture. For instance, self-driving cars trained in the US would be stuck in India. That’s where Indian companies can shine—adapting global AI to the Indian context.”
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“You don’t have to be first; you have to be smart. And I think there are enough smart people in India who will figure out how to make AI work locally,” he said.
