1Password is billing its password management application as an enterprise-grade solution to the password problem
Passwords are a necessary evil in today’s connected world. However, as more people use more services, more passwords are needed. Add to that the rise in password complexity and multi-factor authentication requirements, and it becomes very clear that simple, easy-to-remember passwords are a thing of the past. It is a situation that has led to people using insecure methods to store passwords, ranging from old fashioned Post-It notes to simple password managers integrated into their browsers.
What’s more, password resets have become the top reason for help desk calls in the enterprise, creating unnecessary angst among IT staffers and end users alike. It is a situation that also has led to the creation of a whole new market, one of safely storing passwords and offering end users an easy but secure way of retrieving those passwords. It has grown into a large market, with dozens of players. However, for the most part, most of those hawking their password manager wares are squarely aimed at the consumer and not the enterprise.
Enter 1Password, a company making a play for a piece of the enterprise password management pie. A goal that will most likely be furthered by an injection of $200 million in series A funding. Although the company released its first password manager back in 2006, new developments have driven the company into the enterprise space with a subscription-based service. Advancements that caught the eye of venture capital firm Accel, which now holds a minority stake in the company.
The company claims it has some 50,000 paying business customers, including a quarter of the Fortune 100, with recognizable names such as IBM, Slack, PagerDuty, Dropbox, Gitlab and Roche. According to Jeff Shiner, 1Password’s CEO, the investment will go to good use and 1Password will invest aggressively in product and go-to-market programs to expand its enterprise footprint.
According to the company, in the past two years, 1Password’s enterprise business has grown over 300% and now comprises a majority of the company’s revenue. 1Password will use the funding round to expand its EPM deeper into the enterprise.