Zscaler Inc (ZS)

History and Background

Zscaler Inc. was founded in 2007 by Jay Chaudhry and K. Kailash. It pioneered the concept of security-as-a-service (SaaS) to provide cloud-based internet security. It went public in March 2018.

Core Business Areas

• Zscaler Internet Access (ZIA): Provides secure internet and web access from any device, anywhere, securing users and workloads against threats.
• Zscaler Private Access (ZPA): Enables secure remote access to private applications without the need for traditional VPNs.
• Zscaler Digital Experience (ZDX): Provides end-to-end monitoring and insights into user experience and application performance.

Leadership and Structure

Jay Chaudhry is the CEO and Chairman. The organizational structure is built around product lines and regional sales.

Key Offerings

• Zscaler Internet Access (ZIA): Offers cloud-based security to protect users and data against web-based threats. It's a leader in the Secure Web Gateway (SWG) market. Competitors include Netskope, Forcepoint and Palo Alto Networks. Exact market share for ZIA is difficult to pinpoint as it's often bundled, but it's a significant portion of Zscaler's revenue.
• Zscaler Private Access (ZPA): Provides zero trust network access, improving security and user experience for remote workers. Competitors include Akamai, Palo Alto Networks (Prisma Access), and Cloudflare Access. ZPA has strong market adoption in the ZTNA space.

Industry Overview

The cybersecurity market is growing rapidly, driven by increasing cyber threats, cloud adoption, and remote work. Zero trust security models are gaining prominence.

Positioning

Zscaler is a leader in cloud-delivered security, with a strong focus on zero trust network access. It differentiates itself with its comprehensive security platform and global cloud infrastructure.

Total Addressable Market (TAM)

Analysts estimate the TAM for Zscaler's services to be over $70 billion. Zscaler is well-positioned to capture a significant portion of this growing market.

Key Competitors

• PANW
• CRWD
• FTNT
• OKTA
• CCLD
• NET

Competitive Landscape

Zscaler competes with both established security vendors and emerging cloud security providers. Its advantages include its cloud-native architecture, comprehensive platform, and zero trust focus. Its disadvantages include its higher valuation and complexity of integration.

CloudSimpli

• Year: 2020
• Acquisition Price (USD millions): 0
• Strategic Rationale: Enhanced Zscaler's Cloud Security Posture Management capabilities and provided deep visibility and control over cloud workloads.

Edgewise Networks

• Year: 2019
• Acquisition Price (USD millions): 31
• Strategic Rationale: Edgewise brought workload microsegmentation capabilities.

Historical Growth: Zscaler has experienced significant revenue growth over the past several years.

Future Projections: Analysts project continued strong revenue growth for Zscaler, driven by increased demand for cloud-delivered security. Growth rate is expected to stay high but decelerate slightly.

Recent Initiatives: Expanding product offerings with new features, and forming partnerships with other technology providers are among recent initiatives.

Zscaler is a strong player in the cloud-delivered security market, driven by the growing adoption of zero trust security models. The company's cloud-native architecture and comprehensive platform give it a competitive edge. However, its high valuation and competition from larger vendors are potential risks. Key strengths are its focus on zero trust and strong customer base, but needs to continue innovating to stay ahead.

Data Sources:

• Company SEC Filings (10-K, 10-Q)
• Analyst Reports
• Industry Research Reports
• Company Website

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Market share data is based on estimates and may vary. Consult a qualified financial advisor before making any investment decisions.