The Thesis

In a Zero Trust world, firewalls don't matter; Identity matters. You are either who you say you are, or you are a threat.

Okta is the leading independent provider of Identity Access Management (IAM). The thesis relies on the "Switzerland Strategy": Enterprises want a neutral identity provider that works with AWS, Google, and Microsoft, rather than being locked into Microsoft's ecosystem.

Product Deep Dive: Workforce vs. Customer

Okta has two distinct businesses.

1. Workforce Identity (The Core)

• The Product: Single Sign-On (SSO) and Multi-Factor Authentication (MFA) for employees.
• Use Case: Log in once to Okta, get access to Zoom, Slack, Salesforce, and Workday without typing passwords again.
• The Value: Security (no reused passwords) + Productivity (IT helpdesk saves time on password resets).

2. Customer Identity (CIAM)

• The Product: Auth0 (acquired).
• Use Case: Embedding login functionality into your app. If you build a consumer app, you use Okta/Auth0 to handle "Log in with Google" or password recovery.
• The Value: Developers don't want to build authentication security; they want to build features.

The Business Model

• Seat-Based: Workforce is priced per employee.
• MAU-Based: Customer Identity is priced per Monthly Active User.
• Competition: The biggest threat is Microsoft (Entra ID), which bundles identity for free with Office 365. Okta must win by being better and neutral.

Risks

1. The Microsoft Bundle: "Good enough" and "Free" is a brutal competitor. CIOs under budget pressure may revert to Microsoft.
2. Security Breaches: Okta was breached (Lapsus$, Support System hack). As a security company, trust is the product. Repeated breaches could kill the brand.
3. Commoditization: Is SSO a feature or a platform?

Conclusion

Okta remains the best independent option for Identity. As long as the world is multi-cloud (AWS + Google + Azure), there is a need for a neutral identity broker.