Auth0, the Customer Identity startup, was recently acquired by Okta, a workforce identity provider, in an all-stock deal valued at approximately $6.5 billion.
According to Okta, it will use Auth0’s user identification platform to drive growth in the $55 billion identity market divided into $25 billion for customer identity and $30 billion for workforce identity.
LoginRadius‘ Chief Executive Officer and co-founder Rakesh Soni sees this acquisition as a reminder that the global CIAM market is gaining tremendous momentum.
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Current CIAM players represent the tip of the iceberg of a $25B revenue opportunity in the Consumer IAM space”— Rakesh Soni – CEO LoginRadius
In Rakesh Soni’s opinion, “Current CIAM players represent the tip of the iceberg of a $25B revenue opportunity in the Consumer IAM space. Less My estimate is that less than 1.5% of this revenue opportunity is tapped so far. This is an exciting phase of the IAM space, particularly for the new Customer IAM category—and I am thrilled for all players.”
A decade ago, there were no pure-play CIAM vendors. Major players like IBM, Oracle, and Microsoft attempted to expand their Employee IAM service to some of the customer identity use cases. Newer players such as Auth0, Gigya, ForgeRock, and LoginRadius have only recently accelerated the adoption of the Customer IAM space.
“Building a complex technology like CIAM in-house does not make sense anymore,” said Deepak Gupta, CTO & Co-founder of LoginRadius. “Specialized CIAM vendors are better equipped to keep up with technology, customers, industry, and regulatory changes. Therefore, the decision centering around buying an out-of-the-box cloud solution requires some serious consideration.”
LoginRadius founders even go on to reveal the emerging trends in the coming years:
Organizations will stop building and maintaining customer identity systems in-house. They will instead prefer purchasing a cloud-based CIAM to save on massive spending and get faster time-to-value.In the post-COVID world, the consumer-facing digital transformation will drive enormous demand for CIAM.
Developers are gonna be forefront catalyst in adoption of the CIAM technology.
Today, businesses are building seamless omnichannel experiences that not only engage and entertain consumers but also fulfill their privacy demands and adhere to various data regulations.
The LoginRadius’ developer-friendly CIAM platform is designed to meet growing needs of forward-thinking organization. In the recent Forrester Wave on the CIAM, LoginRadius’ technology is ranked #1 above Auth0 and Okta. Other analyst firms like Gartner and KuppingerCole, too, have time and again reported LoginRadius as a key vendor in the CIAM category.
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