Okta 2018 Investor Day
Oct 9, 2018 at 1:30 PM PDT
Catherine Buan, Vice President Customer Relations
- Next big secular growth story
Todd McKinnon Co-Founder & CEO
The CEO starts the conference off by breaking down the two main uses for Okta
Work Force Identity: Used for Secure Access in the work place
See slide page 23 of slide presentation for history of Workplace Identity: https://seekingalpha.com/article/4210941-okta-okta-investor-…
Okta has a lot more opportunity left by becoming a universal platform
Over 5000 customers on identity cloud and there’s lots of things that can be done by connecting customers across a identity platform. Collaboration with partners or vendors becomes easier.
(Note: The more customers that Okta gains for it’s Work Force Identity product, the more useful things that Okta can do by connecting different companies’ users by identity. This would be a strong network effect that would be growing with each user of the Okta platform)
Companies that use Work Force Identity: Cardinal Health, Newscorp, Nasdaq, Warner Media, Nordstrom, Lyft, Slack, Discovery, Levis
It’s turning into a Hybrid Cloud world
See slide page 27 of slide presentation for Workforce Identity Market Opportunity: https://seekingalpha.com/article/4210941-okta-okta-investor-…
Customer Identity: Used by companies so their customers can logon
Companies that use Customers Identity: JetBlue, MLB (Major League Baseball), Adobe, FICO, Albertsons, MGM Resorts, Dignity Health Con Edison, Experian
Second biggest trend after the cloud is every organization is trying to become a technology company themselves. This has been called the “Amazon effect” or “Digital Transformation”
Software is eating the world
See slide page 24 of slide presentation for history of Customers Identity: https://seekingalpha.com/article/4210941-okta-okta-investor-…
Yesterday: companies built custom built identity apps with limited tools
Today: all of the tools have changed for building identity for apps have changed.
The CEO Todd McKinnon mentioned something interesting about the concept of micro-services.
Micro-services provides single function services for application developers. A explanation of Micro-services: https://www.youtube.com/watch?v=CKL3fV5UR8w
Examples of Micro-services would be Stripe (built strictly as a payment function) or Twilio (built strictly as a communication function). If a App developer uses Stripe and Twilio then they do not need to build payment and communication functions into their app from scratch. They simply use Twilio and Stripe for those specific functions.
Okta would be a example of a Identity Micro-service.
To give people a idea of the size of the Okta opportunity, the CEO Todd McKinnon mentioned that not every app needs a payment function and not every app needs a communication function but every app will need a identification function.
(Note: That’s a nonchalant way of saying that Okta’a opportunity would be far larger than Twilio or Stripe)
Future: In the future Okta wants to be the identity platform standard
- See slide page 28 of slide presentation for Customer Identity Market Opportunity: https://seekingalpha.com/article/4210941-okta-okta-investor-…
Cloud has Changed Everything
8x Rate Growth in cloud vs non-cloud spending
$500B spent on hardware software and services by 2020
75% of organizations will have deployed a multicloud or hybrid cloud model for It by 2020
The Cloud is the biggest secular trend of Todd McKinnon’s career and will have a profound impact on Okta’s business
Risk comes from all the current secular changes, especially security risks which is where Okta comes in.
Over 80% of data breaches have come from companies opening up and providing more capabilities and more access to end users
See slide page 25 of slide presentation for history of Security
Yesterday’s Security was “Network is the Perimeter” defined by Firewall, VPN
Today’s Security is “People become the Perimeter” defined by Identity driven security
Tomorrow’s Security is “People are the only Perimeter” defined by zero trust and customer privacy
- Zero Trust means “Don’t trust the Network” but make decisions based upon the person, the device and what they are trying to access.
(Note: A brief history of Zero trust security https://www.okta.com/security-blog/2018/08/a-brief-history-o… )
- Okta Identity Cloud - See slide page 26 of slide presentation https://seekingalpha.com/article/4210941-okta-okta-investor-…
Vision of Okta
- Enable Any Organization to Use Any Technology - See slide page 29 of slide presentation https://seekingalpha.com/article/4210941-okta-okta-investor-…
End Of first segment of the investor day
People can listen to the whole presentation here: https://investor.okta.com/events/event-details/okta-investor…
I might do further notes later but it will depend on how much people want to read notes like this. There would be no written transcript on the internet that I can find where I can conveniently cut and paste excerpts of what gets said.
I am actually listening to the conference and noting what I think would be most important and that takes time…lots of time and interferes with the pleasure of watching lots of great football games. Wow, LSU beat Georgia!!! Penn State lost to Michigan State!!! Notre Dame just barely beat Pitt!!!
I am probably not going to pour more time into creating these notes unless people want to read more about Okta.
Also, these notes would be sort of out of order to the way the presentation was made. The CEO Todd McKinnon jumped back and forth between discussing the Workplace Identity Cloud and the Customer Identity Cloud and I decided to organize everything under those headers, instead of jumping back and forth in the order of the presentation.