Okta Business At Work Report 2019

I find these types of reports really interesting. Okta collects anonymized data from thousands of companies to produce these reports each year. I’ll share a few of my key takeaways, but it’s a quick and very interesting read.

https://www.okta.com/businesses-at-work/2019/

Takeaways:

  1. This report emphasizes the fact that most SaaS/IT marketplaces especially now that we are in a subscription world are not winner take all.

“We studied our Office 365 customers to see what other apps they are using. We found that 76% have one or more apps that duplicative of apps offered by Microsoft…”

Me again: This is a sign that we shouldn’t worry about the big players smashing our smaller, niche companies, but also that we shouldn’t rely on one company taking over all (or most) of industry spend.

  1. Security apps are just getting started

“We noticed impressive growth in company investments in security tools. Why? Increased attack sophistication and insider threats mean that not everything or everyone inside a network can be trusted. With the new Zero Trust framework, organizations are shifting the focus of modern security away from traditional network strategies to perimeter-less approaches, focusing on users, data, and locations. People (and their identities) are at the center of this framework – and organizations are looking for tools to help protect those valuable credentials.”

  1. Atlassian (TEAM) really has my interest – might open a starter position soon.

“Taking sticky notes and whiteboards digital, Trello has hit a sweet spot in the project management space. PURCHASED BY ATLASSIAN in 2017 for $425 million, Trello has grown 119% over the past two years and is the most widely used project management app overall. The second most used project management app is Asana, whose growth over the past two years has only been 18%. In third place, Basecamp is heating up with a strong 43% growth over the past two years.”

Jira, Atlassian’s Agile Project Management tool is one of the most popular apps by number of customers and Atlassian is ranked as one of the fastest growing apps.

  1. Teladoc & Telemedicine, in general, are growing FAST. Teladocs growth in the last two years should mean the company is going to have a big year as those customers begin using the platform more and more.

– I already have a 5%ish TDOC position so I probably won’t add to it.

“Teladoc enables its members to speak to a licensed doctor via video chat or phone within minutes, 24 hours a day, 365 days a year. Sound convenient? Users think so. Teladoc rose from the bottom of the list, shooting up 280% in the past two years to blow past apps from household-name providers such as Aetna, Cigna, and UnitedHealthcare. It’s the first time telemedicine has taken the top spot.”

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What an informative report.

Didn’t realize how dominant TEAM was in that space. Time to take a closer look there I think. In that space I was also encouraged by Smartsheet’s upward bending curb. Looks like SMAR is gaining market share. Not from TEAM but from the #2&3 who are bending down.

Teladoc and DOCU are going back in the consideration basket too. TDOC needs to be reconsidered as something that can be utterly disruptive.

This survey makes up and coming IPOs Slack, Uber, and AirBNB look super interesting.

Uber was recently the most expensed vendor for U.S. business travelers based on the number of transactions, accounting for 11% of all transactions.(Second-place Starbucks only claimed 4% of the total.)

Uber almost 3x the number two in expense claims. I doubt I would jump in on that IPO, but that’s pretty dominant.

Thanks again. Going to take a few passes to digest that thing.

Darth

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Hey Darth,

No problem! Really enjoyed reading your takeaways from this. I’m just more and more convinced that it’s one of the best times ever to be an individual investor. There are so many resources (like this report) that allow us to learn about specific industries and companies and make informed decisions.

Then when you add the advantages we have from not having to follow the same rules as professional money managers/investors and an intense focus on a concentrated group of companies (as Saul points out in the KB), index investing or letting professionals manage our money sounds absurd.

What a time to be an investor. Love being on this journey with you all.

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What a time to be an investor. Love being on this journey with you all.

You can say that again(wait, I just did). And . . .the blessing to have the studious types on this forum that put their money where their mouth is and post their portfolios. Has this ever happened in the history of the market? Did Rothschild send out pigeons or smoke signals showing what his portfolio was doing?

John

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Oh yea, I remember the good old day when I anxiously waited for the value line paper subscription to arrive, made call to the company for the prospectus, went to the library for copies of the Wall Street Journal and so on.

This board is the gold mine. Thank you all.

Lily

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Zscaler is mentioned once in teh report, under Most Popular Apps by Number of Monthly Active Unique Users

not one of the major apps, and the line has not started the hockey stick, so if we’re right, lots of room to grow.

Tom