The recent security breach of an Okta third party supplier has been widely reported. The criticisms of Okta\u2019s response have been harsh and the impact on Okta\u2019s value has been obvious. Investors shaved about $6B off the company\u2019s market cap during the week the hack was made public. We believe Okta\u2019s claim that the customer technical impact was \u201cnear zero,\u201d may be semantically correct. However, based on customer data, we feel Okta has a blind spot. There are customer ripple effects that require clear action, which are missed in Okta\u2019s public statements. Okta\u2019s product portfolio remains solid. It is a clear leader in the identity space. But in our view, one part of the long journey back to credibility requires Okta to fully understand and recognize the true scope of this breach on its customers.\xa0
In this week\u2019s Breaking Analysis we welcome our ETR colleague Erik Bradley to share new data from the community. In addition, we\u2019ll analyze some of the statements made by Okta CEO Todd McKinnon in an interview with Emily Chang on Bloomberg to see how they align with what customers tell us.