Okta announced this week that it has completed its $6.5 billion acquisition of Auth0. The deal will combine two major players in the identity and access management (IAM) sector.
Okta specializes in software and APIs that enable businesses to manage how their users access online systems. Auth0, is a developer-focused identify platform for what they call “application teams”. Combined, the two companies can claim Siemens, T-Mobile, Pfizer, and AMD among their customers.
Auth0 will operate as an independent business unit within Okta and Auth0 CEO and Co-Founder Eugenio Pace will lead it. Pace will report directly to Todd McKinnon, CEO and Co-Founder of Okta.
Both Okta’s and Auth0’s platforms will be supported, invested in, and integrated over time, they say. This will accelerate innovation and make the Okta Identity Cloud more attractive to the full spectrum of customers and users.
Digital transformation and Cloud transition create a greater need for ID and Access Management
Companies are increasing their cloud IT spend as part of ongoing digital transformation efforts. This in turn generates an even greater need to invest in security. For enterprises, managing the online identities of their workforce is a key part of this shift.
Okta was a first mover in cloud-based identity, while Auth0 was built by developers for developers. Application builders around the world are loyal to Auth0 for its developer-friendly experience. The two are combining their expertise across developer communities and the enterprise. This will help Okta and Auth0 to provide enhanced depth and breadth of identity solutions to the marke, they say. The combo will also make them better suited to integrate quickly into the modern tech stack of today’s developers.
“Identity is one of the most strategic investments an organization will make today,” said McKinnon. “A single, unified identity platform has the power to transform an organization by providing seamless and secure access for both customers and employees.”
“Okta and Auth0 have always shared a vision for the identity market,” he continued. “Together, we will shape the future of identity on the internet, empowering developers to build with identity at the foundation.”