Case Study: Okta and the Cost of a Harder Buying Environment

For years, Okta was unstoppable.

The company defined modern identity and access management, becoming one of the most recognizable names in enterprise security. As organizations moved applications to the cloud, identity became a foundational layer of enterprise infrastructure. Demand was strong, the market was growing, and Okta was raking in revenue.

That is, until growth began to slow.

Companies still needed identity management, but buyers became harder to move.

When buyers got harder to move

In 2024, Okta CEO Todd McKinnon described customers as "taking longer to purchase things" and "really scrutinizing purchases."

More stakeholders got involved in purchasing decisions. Security reviews ran longer. Procurement teams became more involved. Budget approvals required additional scrutiny. Existing vendors fought harder to keep their accounts. Every purchase received greater examination.

The product hadn't changed — the environment had

The product hadn't changed, but the environment had.

Reuters later reported that Okta was forecasting its slowest revenue growth since becoming a public company. The company cited delays in customer projects and increased cost scrutiny among buyers.

Why growth really slows

Okta's experience illustrates a broader reality across enterprise software: growth rarely slows because organizations stop creating value. More often, growth slows because the process of converting value into revenue becomes increasingly complex.

As complexity increases, execution becomes infrastructure.