There’s been some recent changes to Okta’s pricing, and it is interesting to see how Okta® is subsequently changing their market approach. As a now publicly traded company, there is no doubt that this first generation IDaaS solution is leveraging their momentum to raise prices in the market and naturally, this price raise is falling on their customers. Let’s explore the new Okta pricing model together.
The New Okta Pricing Model
Okta’s pricing approach has always been an a la carte style. As a web application single sign-on provider, the core of their approach is to bring users into their service with a low-end price and then upsell them into a number of other services. Their basic web application SSO service is the on-ramp to the rest of their solutions which include multi-factor authentication, lifecycle management, and their universal directory concept.
Their changes recently involved the concept of adaptive authentication and the creation of an unlimited application lifecycle management tier. These changes are pushing the price per user for their full service into the $22 per month range. For large organizations, these changes come at a hefty price.
Prices on the Rise
Of course, IT organizations also know that a web application single sign-on solution is just one of the many identity management solutions that they will need. Also, since this IDaaS platform is most often tied to Microsoft® Active Directory®, the ROI calculation needs to include the cost of the on-prem identity provider as well. Combined, both of these solutions can push the cost per employee in to the $50+ per user per month range, which is a spectacularly high cost. That also doesn’t include all of the user and device management capabilities as well as authentication systems for other protocols. Those additional solutions can also increase the cost of the overall price of an identity management architecture.
For many IT organizations, pricing is just one of a number of components when considering a modern, cloud-based approach to their identity management needs. Because of Okta’s tight integration with Active Directory, which keeps hardware and (Read more...)