Morningstar | Zscaler Displaying Nonstop Momentum
Zscaler wagered heavily on the secular trend of cloud computing and the ways in which this shift would upend the previous paradigms of network and application security. Its bet has paid dividends, as it has leveraged a distributed cloud to deliver a multitenant security platform that offers security capabilities traditionally sold as purpose-built appliances. Although Zscaler has been at it since 2007, we think its business model and security approach are in their early innings, and we see a long runway for growth in an addressable market worth tens of billions of dollars. Zscaler’s software-as-a-service business model and the benefits that accompany this mode of software consumption, combined with an innovative product suite and a differentiated channel sales model, are all factors that we think will facilitate continued success winning enterprises that are building out significant cloud footprints.Zscaler’s go-to-market approach focuses on large enterprises; the firm charges customers on a per-user subscription basis for access to its security cloud offerings. Capabilities such as cloud firewall, data leak prevention, and application segmentation are encompassed within its two umbrella solutions: Zscaler Internet Access and Zscaler Private Access. The malware detection and application control functionalities of ZIA primarily fall under the ambit of secure web gateways, and while the market for ZPA has not yet been clearly defined, it is poised to disrupt segments such as traditional firewalls.Zscaler faces entrenched competitors as well as a legacy appliance-based approach to security that is prevalent in the IT ecosystems of current and potential customers. Still, we think the firm will be able to sustain and augment its competitive positioning in a fragmented security vendor landscape. The secular trends of cloud and mobility have given rise to structural shifts in data traffic paths and volume. We believe that enterprises will continue to leverage the Internet, an open network rife with security vulnerabilities, for critical workloads. In turn, we believe they will find value in the Zscaler’s offerings.Zscaler is a cloud security company that developed a platform incorporating security functionalities needed to enable users to safely utilize authorized applications and services based on an organization's policies. The company's solution is a purpose-built, multi-tenant, distributed cloud security platform that secures access for users and devices to applications and services, regardless of location. The company delivers its solutions using a software-as-a-service business model and sells subscriptions to customers to access its cloud platform, together with related support services. The company conducts business worldwide, with presence in North America, Europe and Asia.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.