I am curious what stats there are to support the argument that Okta is being squeezed by startups. Are there certain areas in their platform where a startup is taking significant market share? The rippling story is interesting - it makes sense to me that the same system that originates the identities could also manage their access, but there is also an argument for decoupling these. Thanks for sharing!
I think that rather than startups squeezing Okta, startups + incumbents in some of these other markets (IGA, PAM) are making it hard for Okta to stake its ground and expand.
I know it’s not strictly part of the unbundling theory you’re covering here, but in the case of Okta, couldn’t we argue that the more vulnerable area is actually the core IAM segment? Here you’d only be competing directly with Okta - and given their slow pace of innovation and their lag in responding to market changes, this might be an easier point of entry. The approach could start by supplementing Okta’s offering, and then potentially expand into adjacent capabilities over time.
Another thought: while the classic network‑effects principle doesn’t really apply here (since this isn’t a marketplace), perhaps there’s another angle. With a platform approach, multiple personas within a particular organization interact with a platform like Okta. There could be benefits as more internal users adopt it - whether through better pricing tiers or improved user experience within that organization. Would you see it as a factor limiting potential unbounding vulnerability here? Thanks!
Okta has faced direct competition in the core IAM segment, from Rippling and Microsoft Entra ID - but not from startups as much. I think it's much harder to enter that market because it's such a core piece of functionality for buyers. Not impossible, just harder to do directly, without already coming in with something else to offer. "The approach could start by supplementing Okta’s offering" - that's how I expect many will compete.
I don't think the multiple personas matter as much, since it's still the same buyer. If they were different functionality for different buyers, maybe.
I am curious what stats there are to support the argument that Okta is being squeezed by startups. Are there certain areas in their platform where a startup is taking significant market share? The rippling story is interesting - it makes sense to me that the same system that originates the identities could also manage their access, but there is also an argument for decoupling these. Thanks for sharing!
I think that rather than startups squeezing Okta, startups + incumbents in some of these other markets (IGA, PAM) are making it hard for Okta to stake its ground and expand.
Thank you!
Yes, the next acquisition WILL start with S and I predict Strikeplate.
Hi Maya, Thanks for the great piece.
I know it’s not strictly part of the unbundling theory you’re covering here, but in the case of Okta, couldn’t we argue that the more vulnerable area is actually the core IAM segment? Here you’d only be competing directly with Okta - and given their slow pace of innovation and their lag in responding to market changes, this might be an easier point of entry. The approach could start by supplementing Okta’s offering, and then potentially expand into adjacent capabilities over time.
Another thought: while the classic network‑effects principle doesn’t really apply here (since this isn’t a marketplace), perhaps there’s another angle. With a platform approach, multiple personas within a particular organization interact with a platform like Okta. There could be benefits as more internal users adopt it - whether through better pricing tiers or improved user experience within that organization. Would you see it as a factor limiting potential unbounding vulnerability here? Thanks!
Okta has faced direct competition in the core IAM segment, from Rippling and Microsoft Entra ID - but not from startups as much. I think it's much harder to enter that market because it's such a core piece of functionality for buyers. Not impossible, just harder to do directly, without already coming in with something else to offer. "The approach could start by supplementing Okta’s offering" - that's how I expect many will compete.
I don't think the multiple personas matter as much, since it's still the same buyer. If they were different functionality for different buyers, maybe.