April 29, 2022

OKTA, CHKP, CSCO, CYBR, FORG, FTNT, GOOGL, MSFT, NOW, OneLogin Inc., PING, SailPoint Technologies Inc.

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Sources and Background

15 Okta distributors, resellers, system integrators and managed service providers in North America (11) and Europe (4), representing more than $67 million in Okta partner-related revenue

REPEAT SOURCES 9 (6 in North America and 3 in Europe) from OTR Global’s February report

INTERVIEWS April 11–22

Competition Weighs on Pipeline

Intensified competition from Microsoft has hurt Okta’s FY1Q23 win rates and pipelines for the next three months, and reputational damage from the Lapsus$ breach has dampened partners’ CY2022 growth expectations.

  • OKTA’s FY1Q23 sales at least in line with expectations for 13 of 15 channel partners (vs. 12 of 17 in FY4Q22); ambitious February pipeline expectations failed to materialize into closed deals
  • Pipelines for next 3 months better than expectations for just 2 of 15 partners (deterioration vs. 8 of 17 in February); 5 of 15 lowered CY2022 outlook vs. February estimates
  • OKTA’s FY1Q23 win rates deteriorating qq for 6 of 15 partners (vs. 4 of 17 in FY4Q22); frequency of competitive deals increasing vs. 6 months ago for 6 of 15; MSFT threat continues to intensify
  • Area to Watch: Auth0 capturing customer interest, but ambiguity around Auth0 integration with OKTA’s CIAM remains concern
Cody Erbacher