Zscaler's Zero-Trust Architecture Resonating With the Market as Entities Undergo Networking Changes

Zscaler wagered heavily on the secular trend of cloud computing and how users would directly connect to cloud-based resources. 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 as enterprises adopt cloud-centric security and zero-trust architectures. 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 consuming more cloud-based resources.