Okta, Inc. (OKTA) Goldman Sachs Communacopia & Technology Conference (Transcript)

Okta, Inc. (NASDAQ:OKTA) Goldman Sachs Communacopia & Expertise Convention Name September 5, 2023 6:45 PM ET

Firm Contributors

Todd McKinnon – Co-Founder and Chief Govt Officer

Convention Name Contributors

Gabriela Borges – Goldman Sachs Group, Inc.

Gabriela Borges

Good afternoon. We’ll go forward and get began. Thanks for becoming a member of us on the Okta session this afternoon. I am Gabriela Borges. I cowl safety and rising software program right here at Goldman. Delighted to have Todd McKinnon on stage with me, CEO and Co-Founding father of Okta.

Todd McKinnon

Thanks for having me. It is nice to be right here, the Palace Resort.

Query-and-Reply Session

Q – Gabriela Borges

So Todd, I wish to begin on what seems to be somewhat little bit of a paradigm shift in safety, which is the concept id is the brand new perimeter. And in order we take into consideration the normal architectures and community safety dissolving, assist us perceive how and when id turns into a extra strategic cornerstone of the safety price range?

Todd McKinnon

I feel it is an necessary query, and it’s the perimeter. I discuss to folks typically – earlier than I get to that query, I discuss to folks loads about even past that, why it issues. And why does – to start with, what’s id. And it is actually like a system of file that shops – the folks and what they will do and what they cannot do and provides you details about that in a full sort of complete visibility sort of method or throughout prospects and workers and companions.

So out of that comes loads of issues. You get – even earlier than you get to cyber, you get easy issues like can your prospects log in and are your companions capable of get to the purposes and get the worth of the – all of the expertise you are deploying. Then you get to the cyber, which is are your buyer accounts getting taken over, do you may have fraud, are your workers getting hacked and phished and do you may have visibility into who’s doing what, going the place. So it is primarily, it is the – on the finish of the day, you are attempting to get all this expertise and all this info to folks. And if in case you have a system of file that claims who’s speculated to get what, when, the place and the way, that is the pure level to reply all these different questions, cyber being an enormous set of those questions. The previous method of doing it the place you may have the perimeter of the firewall or the perimeter of the workplace or it simply – it wasn’t going to face as much as the complexity and the gadgets and the proliferation of expertise that we’ve got at present.

Gabriela Borges

So there are a few ideas in there, which is Okta being an aggregator of identities and having the ability to authenticate. There is a stage above that, which is having the ability to use the id information that you’ve for simpler breach prevention. How do you concentrate on evolving the product combine or the product portfolio long term into extra menace detection, menace remediation, menace intelligence, et cetera?

Todd McKinnon

The – particularly on many breaches, you hear this stat loads, like some variety of breaches are all brought on by passwords or forgotten passwords. And that is positively true. And we will speak about passwords and why I feel, hopefully, we begin utilizing them much less and so forth. However the different breaches, I feel, are in all probability induced as a result of somebody had entry to one thing that nobody knew that they had entry to or there was overly permissive entry.

And that is a tough drawback as a result of you may have these corporations which have large quantity of complexity with the techniques and the customers and the teams and the roles and the permissions and there is – it is actually arduous to have complete visibility into any sort of mistaken configurations or overly permissive entry or accounts that are not shut down. That is sort of just like the boring drawback, but it surely’s a extremely significant issue.

I discuss to loads of prospects which might be – they only need that visibility and a few sort of proactive system to provide them complete view but in addition proactive alerting or warning on, hey, the place am I being overly permissive right here, how may I shut this down, how may I not simply depart an account open. And I feel that is a difficult drawback, however you possibly can’t resolve it except you may have – you bought to start out with a sort of a centralized system of file.

Again to the idea I began speaking about earlier than. It is such as you want a complete system of file of who can do what, who’re the folks, the place can they go to, what is the expertise, the place they’re allowed to, the place they’re not. After which you can begin to do a few of these proactive issues round notifications when you may have issues arrange too loosely. As issues change, you possibly can sort of be on prime of it or at the least have an opportunity to be on prime of it.

Gabriela Borges

So I wish to keep on the theme of the place Okta can go long term with adjacencies and safety. And one of many extra attention-grabbing observations round Microsoft’s new community merchandise is that they are intrinsically connecting their new community merchandise to their id land, to their id product household. And so do you suppose it is smart long term for Okta to incorporate extra adjacencies, both an finish level on community as you concentrate on your longer-term product highway map?

Todd McKinnon

We’re – at Okta, we’re culturally – I would like the corporate to really feel prefer it’s the workers’ firm. They’re working as a builder and proprietor to construct this nice firm collectively. And a part of that’s they’ve to grasp our technique very clearly as a result of should you’re an proprietor of one thing, you are a builder of one thing, you may have enter into the technique, the strategic imaginative and prescient and also you’re extra fired as much as execute on it. So we have finished a bunch of labor to actually make clear in the entire firm, what our technique is. And one of many issues everybody’s – perhaps not everybody at Okta, however we aspire to have everybody at Okta to be very clear on is that we’re an id firm. We’re – our technique is to leverage our lead in id by providing the perfect merchandise in all of the id markets, buyer workforce, privilege governance, id markets, keep targeted on id, and it is necessary strategically as a result of it sort of tells the corporate the place to focus, but it surely additionally permits us to raised combine with the ecosystem.

We strongly consider that, particularly in safety, ecosystem integration actually, actually issues as a result of it is an adversarial surroundings, which means which you could suppose you may have all of the holes plugged, however the adversary is looking for the subsequent gap. And should you’re attempting to get the whole lot in safety from one vendor, you are inherently not properly geared up to have the ecosystem plug that gap and provide you with that protection. So our sturdy perception is by specializing in id, we’ll have the – and constructing a strong technical basis for integration, we’ll have the strongest ecosystem of integrations and technical integrations and provides that each one to the purchasers. So we’re very clear, that is the place we’re targeted. Not about finish level safety. It is not about community safety. It is about id. Now there is perhaps some grey areas. Like what does id imply on the margins? And what’s – and sure, we’ll determine these out, however we’re very clear about the place our swim lane is long-term.

Gabriela Borges

So one of many issues…

Todd McKinnon

Microsoft is correct about that. Sorry, I imply I am actually enthusiastic about this. There may be one factor Microsoft is actually appropriate about, that id does must be built-in strongly to community, and it must be built-in strongly to the gadget, and it must be built-in strongly to each app in your ecosystem, not simply the Microsoft stuff. In order that they’re proper, but it surely’s incomplete as a result of they’re – on the finish of the day, they’re targeted on Microsoft, not on your entire ecosystem.

Gabriela Borges

Microsoft will oftentimes talk to its buyer base, but it surely does have ecosystem integrations exterior of the Microsoft ecosystem. So when you may have gross sales reps within the discipline, how do they counter a few of these claims? What are a number of the extra nuanced factors that buyers and prospects ought to be listening to when Microsoft makes that declare?

Todd McKinnon

It is a actually good query as a result of, particularly as we – at Okta, as we work actually arduous to allow our gross sales workforce and have actually compelling messaging and everybody is evident on the technique and the imaginative and prescient, however loads of occasions with the shopper, the imaginative and prescient of the corporate or the technique the corporate does not matter as a lot. They’re attempting to resolve the issue of the day and within the macroeconomic surroundings that has questions. They wish to ship enterprise worth, and it is not as a lot about your high-level imaginative and prescient is like resolve my drawback. So it is a actually necessary level.

So I feel this level about id being necessary after which the mixing of id to the whole lot, there’s actually two layers you possibly can sort of show the purpose to a buyer. One is just like the very particular – such as you talked about a selected examples of how Okta works higher, whether or not it is integrating with a various set of HR techniques to have your joiner-mover-leaver course of actually comprehensively automated throughout your entire – there’s simply particular examples the place our integration is stronger. And you are able to do the identical factor for various consumer working techniques or cell phones and – or if you wish to get phishing-resistant entry, you possibly can’t do it throughout quite a lot of platforms with anybody else however Okta. It is simply unequivocally, technically true.

However Microsoft can spend some huge cash and so they can make investments and so they can do issues that different distributors are doing. So you then get to sort of the high-level philosophy of the – of simply – and this does not at all times resonate. It resonates with some corporations, but it surely’s only a philosophy of on the finish of the day. When you’re a product supervisor at Microsoft and also you come to your boss with an important innovation that basically logs folks and rapidly and securely to Amazon Net Companies, higher than Azure, you are simply not going to get promoted. Simply – it is a cultural factor.

They’re – Microsoft is doing an important job promoting Azure, promoting collaboration apps, and so they’re even making loads of efforts in safety. However on the finish of the day, it is about these three issues. It is not about id per se. We’re completely different. We’re about id. We’re connecting the whole lot. We will be inside greatest for the purchasers at a philosophical and like alignment stage. However once more, you have to show it within the particulars. You bought to show it by having extra integrations, which we do. You bought to show it by having deeper integrations. You bought to show it with a greater ecosystem that works higher out of the field. And that is what we’re targeted on doing.

Gabriela Borges

So I wish to join the dots between the longer-term imaginative and prescient that you simply’re articulating and a few of what you are seeing within the close to time period. Earnings name final week, speaking about seeing the demand surroundings stabilize based mostly on traits in length, common deal dimension, new enterprise, loads of the metrics steady to enhancing. Would like to get your qualitative overlay on what you are listening to on the bottom out of your prospects? How is the demand surroundings?

Todd McKinnon

Sure. I feel you talked about the quantitative features anecdotally or qualitatively, I feel there simply appear to be fewer like random adjustments within the deal simply being gone or slipping out. We noticed that occur in Q1. I did not actually see that occur in Q2. It was sort of like stability of forecasting and sort of like much less random issues occurring within the cycle, which I feel is an indication of this macro stability, notably – after which within that, I feel the SMB a part of our enterprise, folks are usually fairly – the price range’s fairly conservative and initiatives fairly – not as flowing by means of the system. Bigger enterprise, it looks like they set their budgets at the start of the yr and so they’re sort of executing on. I feel you noticed that in our outcomes with our 25 greatest offers have been $100 million of TCV, which is an excellent consequence for us.

After which the cohort of $1 million ACV offers was the most important actually wholesome, massive progress numbers there. And I feel that is only a results of id is necessary, notably for giant corporations, which have loads of complexity, loads of customers, loads of expertise, loads of essential initiatives on the shopper id aspect, issues they wish to do on the workforce aspect, round cyber and higher person expertise. And I feel you simply see these sort of seeing these budgets roll by means of.

Gabriela Borges

So there are a few completely different items to that, the shopper id piece and the workforce piece. One of many traits that we’re attempting to raised perceive and workforce is how far alongside the product cycle are we? As a result of SaaS-based single sign-on has been round since Okta pioneered innovation within the house.

Todd McKinnon

Virtually 15 years.

Gabriela Borges

Sure. And so when you may have massive prospects which might be nonetheless investing in workforce, what are they investing in?

Todd McKinnon

Sure. This can be a – I feel it is a false impression folks have. Quite a lot of – particularly in bigger enterprises, they’ve loads of – sort of a mix of loads of issues. They have not actually standardized on one platform for id, not even for workforce id, not to mention workforce and buyer. They’re going to have – widespread factor you may see is you may see components of the enterprise can have perhaps some Lively Listing software program, one thing referred to as Lively Listing Federation Companies. They’re going to have legacy software program environments and different pockets that basically grew up round sure purposes or sure use circumstances, perhaps for companions.

Then you definately’ll get clusters of id round apps. Such as you’ll see the Oracle stuff across the Oracle apps, IBM stuff across the IBM apps. You continue to see a bunch of laptop associates stuff on the market. After which there are corporations which might be – have solved it for the Microsoft apps with Azure AD. However they nonetheless have issues in that these techniques do not work collectively. After which notably once they’re speaking on the cyber aspect about visibility, should you’re a CSO, should you – congratulations, you are employed as a Chief Safety Officer of a giant firm. One of many first issues you have to attempt to do is get visibility throughout all of it. I meet with CSOs on a regular basis. They’re like simply present me the whole lot.

And so one of many issues they do is that they sort of get a roll up of all these techniques. In order that they put Okta in place and so they sort of get visibility in all these techniques, after which they will take a few of them out over time. They will perhaps do new use circumstances as a result of they began with simply single sign-on, and so they go to a phishing-resistant multifactor authentication. Now with id governance, we may give them extra reporting and extra workflow functionality. So it is a fairly complicated surroundings. And this concept that you simply both have id or you do not, it is actually not the way it works. It is like you may have items of it in every single place, and it is – we’re attempting to maneuver the business to love one unified platform particularly for id.

Gabriela Borges

Are you able to give us a way for inside your massive enterprise prospects on workforce, what share penetration do you may have?

Todd McKinnon

So should you simply say inside workforce, I feel an excellent proof level is the upsell charges from – what we’re seeing within the worth of upsells for governance as a result of if these of you which have been following Okta, the workforce product portfolio is basically, there are another merchandise, however the primary ones are single sign-on, multifactor authentication and life cycle administration. Merely – like merely, it is principally like authentication, sturdy authentication after which automating the creation of profiles and the deletion of profiles and the synchronization of profiles. That is life cycle administration.

So with governance, we’re seeing a median – and governance is actually – it is like – it is a piece on prime of life cycle administration. It sort of rounds out the answer. So with governance, we’re seeing 30% extra – 30% plus enhance within the ACV of our workforce prospects by including governance. And we’ve got over 12,000-plus workforce prospects and a ton of room to run in that buyer base with governance. That is not even together with privilege. And so it is – there’s loads of room to run. And that is not even together with buyer, too.

So we speak about doing properly with upsells, new enterprise being somewhat slower just lately, I feel loads of that’s as a result of we’ve got much more merchandise to promote. And because the financial system will get more durable, I feel the rational factor to do is promote to your buyer relationships. And when you may have a product portfolio that is actually expanded over the past couple of years. I feel that is why you are seeing a few of that upsell – these upsell charges occur.

Gabriela Borges

The concept of standardized or unified id platform and enterprise makes a ton of sense, exterior of CSO turnover, what are a number of the catalysts that Okta may help impact to go from, hey, buyer ABC has seven completely different id distributors throughout completely different items of their group to we’re all in on Okta on workforce after which we’ll improve to OIG, et cetera?

Todd McKinnon

There’s a pair – it is – so loads of the breaking by means of that inertia and getting – there needs to be a catalyst, as you talked about. When you’re a big enterprise and you’ve got loads of complexity in your expertise and loads of complexity in our id stacks, plural, there needs to be a breakthrough to catalyze that or there needs to be a forcing operate to catalyze that. And it is – typically it is a champion who will get employed, a progressive chief, CSO or CIO that wishes to do extra with much less, have higher cyber posture and make issues simpler to make use of. That definitely occurs. One other huge one is M&A, so like firm will herald a brand new firm and so they’ll should consolidate the techniques to get the M&A to reap a number of the synergies that they need within the deal case.

Final couple of weeks in the past or final week, we launched one thing referred to as Okta for the World 2000. It is actually a complicated functionality to assist corporations determine – so when corporations have a enterprise technique, they – principally loads of enterprise methods deciding, which markets to be in, win. And so you bought to determine which divisions of your organization you are going to go after which markets, which issues you are going to attempt to do centrally from a G&A and value enchancment perspective, which corporations you are going to purchase, which corporations you are going to divest and so forth. And so now there’s a lot expertise concerned in that each one these selections are expertise selections. And since they’re expertise selections, all these selections are id selections.

So Okta for World 2000 actually explains to folks which you could – id may help drive your enterprise technique. It provides you the pliability to determine what you wish to centralize, what you wish to purchase, what you wish to promote, the way you wish to assault these markets. And these sort of issues catalyze a few of these enterprise-wide standardizations of Okta. And it is an instance of how we’re elevating the visibility of a few of these selections as a result of too many corporations nonetheless take into consideration id as one thing tactical that is finished as a division in a fragmented method, and there is tons of advantages they may accrue by standardizing this functionality throughout the board. In order that’s a catalyst for a few of these migrations.

And I feel one other huge one now’s simply cyber. The businesses are – Boards of Administrators and CEOs are sick of listening to about phishing assaults and ransomware, and inevitably, this stuff come all the way down to some password or some phishing and that is how they obtained in and so they simply need it to cease and by standardizing a few of this throughout the board with a phishing-resistant product like Okta they will try this.

Gabriela Borges

I might prefer to tie a few of this collectively into the heavy lifting that you simply all have been doing in your go-to-market and to some extent in your R&D as properly over the past two years. What are a number of the incremental efforts that you simply’re targeted on from a company or a course of standpoint along with your inside gross sales and advertising group? After which similar query for R&D.

Todd McKinnon

Now we have the strategic – our plan for this yr – our working plan for this yr is – it is – we’re executing it properly. Now we have progress is – we’re doing properly on progress. We’re doing properly on effectivity. And regardless of the enhancements in effectivity, we’re truly investing a good sum of money in effectivity for future intervals. So one of many issues that is missed when folks have a look at our outcomes is we’re truly spending a good sum of money making issues higher when it comes to effectivity for the longer term. Like an excellent instance of that is we do not proper now have an automatic approach to seamlessly invoice prospects for overages on the service. We – like loads of issues, we by means of our bodies at that previously. We mentioned, hey, automating that’s going to be arduous, and they’ll take some cash. Let’s simply rent extra folks, and so they can – we will manually go after this.

However like a few years in the past truly and actually ramped up at the start of this yr, we’re automating all that. In order that’s costing cash. I imply that is like making us much less environment friendly this yr, however 5, 10 years in the past – 5, 10 years from now, as Okta grows to be $2 billion, $4 billion, $10 billion and past, it will be automated, and people sort of – that income goes to be rather more environment friendly. In order that’s one instance. So we’re doing loads of that.

There’s additionally simply loads of – as our imaginative and prescient comes along with one firm promoting buyer and workforce and the acquisition of Auth0 actually being absolutely built-in. There’s simply loads of issues that get extra environment friendly and efficient, whether or not it is gross sales reps studying promote each clouds, buyer and workforce, whether or not that is enablement that occurs to coach folks, the worth props that resonate in an financial system that is tender, how they promote in that surroundings, how we prosecute. There’s simply – simply – I’d simply say it is like loads of steady enchancment.

We’re attempting to get higher on a regular basis. We’re not – the journey will not be finished. We do not suppose that we’ve got a good couple of quarters that we will simply chill out. We have to maintain working tougher and push tougher, and we predict that we’ve got an enormous alternative and we will develop. And we may be environment friendly and we will actually fulfill the potential we’ve got.

Gabriela Borges

Is there a method to consider what inning Okta is in realizing the complete potential of the Auth0 acquisition?

Todd McKinnon

I feel it is like one out within the third inning.

Gabriela Borges

Okay. Certain.

Todd McKinnon

We had a tough first inning. Quit a number of hits, however we’re within the third and loads of room to run.

Gabriela Borges

The place did you may land on the perfect…

Todd McKinnon

That was your analogy, not me.

Gabriela Borges

No, I admire that. The place did you land on the perfect go-to-market method between product-led progress, successful the hearts and minds of builders versus extra of a top-down movement for buyer id particularly?

Todd McKinnon

I feel the go-to-market on buyer id is actually necessary. It is not an both/or. I feel one of many realizations earlier than we did the Auth0 acquisition and all through it, it has been confirmed, which is builders in buyer id are a extremely necessary constituency however no developer indicators a PO for $1 million. It is finished by a CTO or an structure individual or a product officer or a market digital officer. So you actually should have each.

And what we realized at Okta is that the product and the platform we had constructed was actually good for CSOs and CIOs and actually sort of whenever you needed to place a system in prime down, and it was sort of like preordained the way it configured the whole lot. Okta is actually good at that, pre-integrated, sort of set the usual from the highest. However Auth0 was actually good at, because the product was constructed, because the engineers first thought of ought to they purchase this or construct this, I want an id stack that does precisely what I want it to do and never an excessive amount of very versatile, very sort of component-oriented, does precisely – which may be very completely different than saying, hey, here is your id resolution from the CIO or the CSO. It is a typical method we entry apps. That is the way it works.

And so what we noticed is that the – in lots of occasions, the advertising individual or the Expertise Officer, the VP of Engineering, they really – not solely was the platform a improper match for them, they really did not need the factor that the CIO picked. It was like – I’ve labored with corporations that I used to be attempting to get them to purchase Okta for buyer id earlier than the acquisition and the VP of Engineer was like we’re not utilizing that. That is what the CIO picked.

However now after – with Auth0 and buyer id cloud, they’re like my builders love this. I like working with one firm. It is simpler to do enterprise with you. It is simpler. You have got one help workforce, one providers workforce, sort of one throat to choke, so to talk, on buyer success, and my builders love this. It is a pure extension. I will pay you extra for that.

So it is sort of that steadiness of tops-down relationship affect with the builders loving it and the bottoms up, which we predict is a successful mixture and why it is so thrilling to be simply within the third inning. One other factor to find out about that is that it informs our – so our technique is we wish to double down our lead in id by having a product in each class after which use that neutrality to have this ecosystem benefit. It is smart then to have one gross sales rep that’s promoting all merchandise within the account as a result of what that gross sales rep is meant to have the ability to do is promote greater.

So I do not need a gross sales rep that may solely discuss to CIOs or solely discuss to CSOs. I want reps that may discuss to the engineering individual and the advertising individual and the expertise individual. It is tougher to do. It takes a talented rep, somebody that basically needs to focus and learn to do it. However you are in a way more strategic place as soon as you possibly can land it.

Now that being mentioned, they nonetheless have to have the ability to execute transactions. They cannot sit there and attempt to name on the CEO and the Board all day and never truly shut the deal. However that is how the go-to-market technique aligned with our firm technique.

Gabriela Borges

You have made a lot progress on the alignment of go-to-market. What’s the limiting issue at present to hiring a brand new gross sales chief?

Todd McKinnon

Discovering the best individual. It is actually necessary. And I can – I will develop on that. So the search began in February. And I talked to a bunch of those that had – I needed to seek out somebody that had finished it earlier than, taking a SaaS firm from $2 billion to $4 billion to $8 billion and past. And there aren’t that many. There is a handful. And people people are both – like their jobs or they’re retired. So then we’re – then we shifted the search to extra, name it, somebody that hasn’t truly finished it earlier than, however has – I would not name them an up and comer as a result of these individuals are amazingly completed. However simply have not been the individual within the driver’s seat and all go-to-market on the scale we’re attending to.

And on the similar time, the – I feel it is a vital rent for the subsequent three to 5 years. And we simply wish to get it proper, and we’re doing our homework and checking references and networking loads, and we’ll discover somebody nice.

Gabriela Borges

Great things. Okay. I’ll pause. Questions from the viewers.

Todd, we spend a good period of time with channel. And channel advised us we’d like to have an id platform that is simple to implement, that is complete. We predict there is a hole available in the market. Okta nonetheless has progress to be made earlier than we decide to them wholeheartedly. What do you continue to must do to get the channel absolutely in your aspect and leverage a few of that momentum or potential momentum?

Todd McKinnon

I feel similar to we speak about balanced enablement of our discipline with buyer id, I feel we’ve got to ensure we educate and allow the channel on buyer id. I feel the channel is – there’s loads of corporations within the channel. It is a fairly large group. However to generalize, I’d say they’re extra workforce centric. It is like cyber and conventional outsourced IT kind of orientation. So I feel we’ve got to allow them on buyer.

And I feel only a few – particularly the midsized channel gamers, only a few of them have devoted – they give thought to id as a broad platform in the identical method that we do. So we’ve got some work to do there. I feel on the bigger – the large SIs and the most important corporations and gamers within the channel suppose we simply should make it possible for we, as a product portfolio expands and as we’ve got a set of capabilities that can give them loads of work to do round this as a result of I am unsure the large Sis – the large SIs can add loads of worth to prospects at scale. It is not a lot concerning the resolution being simple. It is about how a lot worth can they add round it.

So I feel we’ve got work to do in educating them and partnering with the large SIs to not solely within the governance alternative, however – as a result of governance is complicated and there is to totally automate governance finish to finish in an enormous firm, they’ll take a companion that is going to take an SI. After which on the shopper id aspect, it ought to be actually according to what these huge SIs wish to do as a result of they wish to actually be the digital transformation companions. And so I feel we’ve got – we made loads of progress within the huge SIs, however we will do extra there.

So I feel our channel program, [indiscernible] massive has – over the past yr, has – I’d say, we’re targeted on fewer companions, and we wish to make it very clear, those we’re targeted on and the place we direct prospects after which we additionally commensurately need the companions to, like all these prime companions do, actually add a ton of worth. And so it is like a spotlight and it is a actually sturdy partnership as a result of we do not prefer to see the damaging channel checks. It bums me out. So we’re focusing out – we’re specializing in fewer companions nonetheless loads of companions, however fewer than we have been earlier than with sort of like white glove, sturdy partnership with those we’re specializing in.

Gabriela Borges

Need to finish again on product, which is should you mirror upon a few of your extra attention-grabbing buyer conversations so far, your most refined prospects, what are one or two issues that they are doing which might be notably attention-grabbing with how they method id? And what’s the subsequent huge technical problem that these prospects are asking you to resolve?

Todd McKinnon

Sure. I feel probably the most probably the most refined prospects I discuss to have been capable of steadiness this – there’s like two extremes. Like one excessive is the Wild Wild West. It is like all of the teams within the completely different utility house owners and the completely different corporations and an enormous firm all do their very own factor. That is just like the situation I used to be describing the place you may have the Oracle id across the Oracle apps. You have got CA doing a little stuff round mainframes. You have got Microsoft round Microsoft and you’ve got a bunch of small gamers utilizing level options. That is the Wild Wild West.

The opposite excessive is you may have an organization that simply principally centralizes the whole lot and says you do it my method, locked down. It is not loads of flexibility. It is sort of – they’ve sturdy visibility, sturdy safety, but it surely’s sort of inflexible. So I feel probably the most refined corporations have found out do each. They found out like centralize what they wish to centralize and have the requirements they want at a world stage whereas nonetheless enabling folks to run and be quick on the native stage.

And I feel that is – because the CEO of Okta, that is loads of the problem of operating the enterprise. It is like as you begin to scale and also you begin to develop, how can we steadiness the effectivity and the size of doing issues centrally, however we do not have the stifling lack of flexibility, innovation that retains folks from operating? And after I see prospects, they can try this of their enterprise technique and their expertise technique and their id technique, it is fairly spectacular.

Gabriela Borges

Great things. Thanks to your time. We’ll depart it there.

Todd McKinnon

Thanks. It is good to be right here.

Gabriela Borges

Thanks all for being right here.