Okta’s $6.5 billion purchase of Auth0 is based on the idea that there will be only a handful of clouds within companies in the years ahead. Identity will be one of those clouds joining functions like collaboration, CRM, infrastructure, HR and communication.
That vision hasn’t played out just yet, but if it does the all-stock transaction that makes Auth0 a unit of Okta will look like a value. Okta estimates that its core workforce identity market is worth $30 billion and Auth0’s customer identity market is $25 billion. With more integration, signals and data, Okta with Auth0 can create new use cases.