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I am sure many already know this, but I wanted to hammer home a thesis argument for OKTA following my reading of their Q4 Earnings Call Transcript. From the CEO, Todd McKinnon, on the call:

"Lastly, I’d like to address one final strategic priority for the year, security. The architecture for security shifting from network-centric to identity-centric as the firewall can no longer protect the nucleus of the enterprise. The Okta identity cloud lays the foundation for a zero trust security framework which includes advanced capabilities like contextual access management and continuous authentication."

In layman's terms, when you are at work, and on the company network, that would be an example of a network-centric firewall. You are using their computer, their cables, their router, etc, etc. However, say you take a trip to a foreign country, and still have to access confidential company information. Now, you are reliant upon the security of your personal phone/laptop, whatever hotel or cafe's wireless network you might be on, and even the servers in your geographical location that are trying to access your company's servers back home. This creates many more potential "leak points" for hackers to gain access from. A network-centric system has no ability to monitor and secure the data from all these leak points that you are transmitting data from. A user identity-centric system however, focuses on monitoring and securing the user, regardless of what device or network they may be on, or what location they find themselves at. Now, tell me a single company that doesn't want that style of security?

One last line from McKinnon:

"When we started the company, our bet on the cloud was far from a sure thing and while it’s still relatively early, today the movement to the cloud is inevitable and it has now created huge opportunities in security that we are also well positioned to capture."

I'm way long OKTA.

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