On Monday October 4, 2021, IAM vendor One Identification introduced plans to amass IDaaS vendor OneLogin for an undisclosed quantity. Based in 2009, OneLogin is a longtime pure-play IDaaS vendor that primarily serves midmarket enterprises, with a unified platform for workers, companions, and prospects and has raised over $170 million in enterprise financing. Forrester estimates this buy value was doubtless within the $400M-$600M vary.
The OneLogin acquisition is the most recent occasion in what has been a very lively 12 months for funding exercise in IAM, starting from Okta’s acquisition of Auth0, the Thycotic/ Centrify merger and ForgeRock’s latest IPO. Whereas OneLogin emerged as a powerful IDaaS participant for enterprise use instances (as evidenced by our latest Forrester Wave™: IDaaS for Enterprise), the success of this merger will rely on the next:
- How nicely One Identification can scale up SaaS particular experience. Whereas One Identification is a longtime IAM vendor with a broad product portfolio, their portfolio has favored on-premise deployments with their SaaS choices following extra of a elevate and shift method. Bringing OneLogin into the fold provides One Identification a powerful SaaS providing however it’s a new supply mechanism for One Identification. Because of this One Identification might want to scale and construct up the required ability units to help SaaS deployments to make sure success.
- How successfully One Identification can compete within the extremely aggressive IDaaS market. Whereas OneLogin has had a powerful IDaaS providing, their buyer adoption has lagged that of distributors reminiscent of Okta, Microsoft, and Ping Identification. One Identification has usually competed with different on-prem IAM distributors reminiscent of CyberArk, IBM and SailPoint, so with this acquisition One Identification will now be competing towards a lot formidable IAM distributors. Because the IDaaS market continues to mature, succeeding on this market would require vital advertising and R&D investments to stay related.
- How efficiently One Identification can combine the OneLogin IDaaS platform. One Identification’s portfolio has usually centered on identification administration and governance (IMG) and privileged identification administration (PIM). Including the OneLogin IDaaS platform into the combination provides One Identification a chance to distinguish their choices towards different IDaaS distributors that lack native PIM or IMG capabilities. The One Identification/OneLogin mixture now most intently resembles the CyberArk/Idaptive IAM portfolio so constructing a compelling integration and go-to-market method for the OneIdentity/OneLogin mixture can be one thing to look at over the subsequent 12 months.
- How efficiently One Identification can retain engineering, skilled service and help expertise. The success of the OnleLogin acquisition largely is dependent upon One Identification’s capacity to retain OneLogin’s advertising and technical expertise (product growth, skilled providers, and help) to supply a 1) clean expertise for legacy prospects of the acquired vendor, 2) cross- and upsell from the acquirer’s legacy portfolio, and three) purchase and retain new prospects. One Identification previous integration efforts have been combined. Their January 2018 acquisition of Balabit was a good strategic selection however Forrester purchasers talked about some challenges with the combination effort and staffing turnover. Addressing these issues will make sure that One Identification is ready to leverage most worth and success from the OneLogin acquisition .