ID management service Okta held a business briefing session for Japan on March 30th. Frederic Kerrest, co-founder and chief operating officer, said that in addition to corporate internal use such as ID integration and collaboration when using business systems, adoption in consumer services will be the company’s business growth in the future. He showed the view that it affects.
Okta Chief Executive Officer Frederic Kerrest The company’s 2021 fiscal year, which ends in January, has sales of $ 835 million and is expected to exceed $ 1 billion in the 2022 fiscal year. The ID management cloud service provided by subscription accounts for 96%. Kerrest says the company has successfully acquired large corporate customers, which the company defines as over $ 100,000 in annual contracts, and has reached more than 2,000. In a large-scale case study, NTT DATA cited 130,000 IDs and explained that the company adopted it for global ID integration including group companies.
The number of large corporate customers is increasing steadily. In addition, there are about 7,000 types of technology integration such as third-party system integration, and even in Japan, lawyer dot com cloud sign, Cybozu, SmartHR, etc. are services with Okta ID. It is said that it is already connected. Mr. Kerrest said that the company’s independence and neutrality will continue to be a tailwind for the ID management business, such as corporate cloud migration, cloud utilization for digital transformation (DX) promotion, and cloud utilization in various work styles due to corona damage. He states that providing solutions with partners has led to the acquisition of users. In addition, as a demand expected to grow in the future, he mentioned the provision of ID management functions in consumer services (the company describes it as “customer ID”). According to Kerrest, the identity management market is about $ 30 billion for corporate internal use and about $ 25 billion for customer ID use, for a total of about $ 55 billion. The company announced plans to acquire Auth0, which is in the same industry, for about $ 6.5 billion on March 4, US time. Kerrest explained that the purpose was to expand the business into the customer ID area. About 25% of Okta’s sales are for customer IDs, and the company will expand its business by acquiring Auth0, which has strengths in developer services in this area. Kerrest explained that Auth0 will be maintained as an independent team even after the acquisition is completed. “This acquisition will bring about a big change in becoming a game changer in the market. It shares a vision with Auth0, but the business will complement each other. About 40% of Auth0 is sold overseas, and Okta’s overseas sales It will also contribute to deployment. Integration with Auth0 will take time slowly. ” On the other hand, services for corporate internal use are growing rapidly, with Microsoft expanding the functions of Azure Active Directory (AzureAD), and are strengthening their presence as a competitor of Okta. In this situation, Kerrest said, “I understand that Microsoft is expanding its market share by integrating basic functions of identity management with Microsoft 365 services and so on, but we manage identity for large enterprises. There is no change in the need for neutrality and independence in future cloud usage by cultivating the service market. ” The enhancement of technology integration will also contribute to the acquisition of customers.
Mr. Takashi Watanabe, President and CEO of Okta Japan In the Japanese market, the company established the Japanese subsidiary “Okta Japan” in September 2020. Takashi Watanabe, President and CEO, explained that business development in the Japanese market is proceeding smoothly through efforts such as user support after the introduction and expansion of marketing content in Japanese. The number of Japanese partners in technology integration is also increasing, and new solutions are expected to increase. A Japanese support site will be opened in April. Regarding the Japanese ID management market, Mr. Watanabe says that there is not much change from the conventional corporate IT product introduction pattern, in which even large companies carefully conduct trial introduction and verification and then carefully develop it. While continuing to expand services specialized in the Japanese market, the company has announced a policy of expanding its business in the customer ID area as well as globally.
More than 7,000 menus with technology integration partners
Status of domestic partners