While having not yet pulled the trigger on OKTA, and currently considering it, I found this article helpful. Drank the cool aid on SHOP 18 months ago and took a full position. To those on the board with the conviction to have already purchased OKTA, what are your perspectives on this article? To say there’s a need for security in the cloud is an understatement.
Could OKTA be the holy grail to cloud security that SHOP is to e-commerce platforms?
“Examining the similarities
Shopify and Okta compete in different business lines, but the two young cloud-based companies have a surprising numbers of things in common.
Industry-leading positions in enterprise cloud software, allowing them to benefit from huge, long-term, macro-level trends.
Subscription-based business models, which are easily scalable and will become more profitable as they get bigger.
High revenue growth, despite bottom-line losses.
A significant portion of expenses devoted to sales and marketing, evidence that the companies see significant growth ahead and are sacrificing profits now to gain market share and build scale to give themselves a competitive advantage.
A current competitive advantage through switching costs. Once customers start using each platform and integrating them with their businesses, it costs significant resources to move away from it, making current subscribers more likely to stick with the service.
Growth opportunities exist in adding new customers and expanding relationships with current customers, i.e. signing them up for higher-value products.
Of these shared characteristics, the most important seems to be their leading positions in their respective corners of the cloud market.”