Oktane19 Morning Keynote
Krista A.: Good morning, everyone. How's everyone doing? Yeah. A little. I wish they had these conference chairs that had like a little coffee dispenser or like an espresso dispenser that you could just take some shots of while you're making it through your day.
Well, welcome. Welcome to day two of Oktane19, we're really excited to have you all here. Really excited to see a packed house. We know that 8:30's a little early for some of you, but we're not in Vegas. So, nobody should be hung over, and you should be fresh and ready to go.
I've been Okta's Chief Customer Officer for about five years now, and I really truly believe that I have the best job in the company. I have the best job in the company because our number one value at Okta is customer success. More specifically, love our customers. And with that, it makes my job so, so easy because everything that we do, every decision that we make, is ultimately through the eyes of you, our customer.
But I also love my job because I get a front row seat to everything that you guys are doing every day. All the innovative work that you're doing with Okta to help move your companies forward with technology. And it's not easy. We know it's not easy, it's not always the easiest thing to do.
For those of you who were here yesterday afternoon with the Keynote between Ryan and Michelle [Falusa] from IBM, Michelle made a comment about digital transformations and how the word is overused. And over the weekend, I was listening to a video of a fellow customer success leader. And he was talking about this strategic transformation that his team was making, and how he had a like a ... not buzzword bingo, but a penalty jar for every time somebody said digital transformation, digital transformation because it was too big. It seemed too big for their team, and not specific enough for their team to really get their heads around what they were trying to do with their customers.
And it got me thinking that we have words like transformation and journey, and we think about these things, and sometimes we think that they're overused terms. And it's because they're hard, right, they're not specific and they're hard. And that's what we're here for.
The Customer First Team at Okta is really here to make that a little bit easier for you. It's not ... those transformations and journeys aren't about a single piece of technology, they're not about one single process. They're really about moving you, your employees, and your customers, and your partners forward. So, for many of you it's also about becoming a technology company in your own right.
In order for you to be successful, you need trust, right? At the heart of any relationship, of anything that is a journey, you need to trust. You certainly have to trust the technology. You're not gonna purchase Okta if you don't trust that technology, but you need to trust the people. You need to trust that they have the expertise and the ability to get you where it is that you need to go. That they have the experience to bring your vision to a reality. And that is what the Customer First organization at Okta is all about.
Synonymous, right? Trust and Customer First should be the same thing at Okta. We take our responsibility in the Customer First organization very, very seriously. Every single day we know that the only reason we are here is to make each and every one of you successful with Okta products, to make those visions a reality, and to bring those transformations into the forefront. To help you realize the full potential of all the technologies you've chosen to move your business forward.
And here's how we think about it. Quite simply, it's learn, deploy, adopt, and grow. So, number one, we're gonna make sure that you understand what it is that Okta products do, what problems they solve, and make sure we do the first time, but also make sure we do that continually as you grow as a customer with us.
Once we do that, we want to get you up and running quickly, right? We wanna future proof your architecture, we wanna get all of your integrations up and running, we want you to go live. And then, we wanna focus on making sure that you're adopting the product, that you're using the full feature set, and that you're also using the full breadth of your subscription, whatever it is that you've purchased with us.
And if we do all those things, we know that you're gonna grow with us, right? We know that you're gonna continue to grow and continue to want to do more with us. So, today you're gonna hear from seven customers. You're gonna hear from some customers who've gone through this exact journey with us. You're gonna hear about how we're extending trust to their workforces, and their partners, and their customers.
But there's seven of them on stage today and there's 90 here at Oktane, there are 90 customer speakers who are sharing their stories, who are sharing how they've moved their organizations forward with Okta and our technology. So, please, take advantage of this. Take advantage of the folks here on stage, take advantage of what's going on in the break outs. Learn from them, get inspired by their stories, and get ready to partner with the Okta Customer First Team to help make these things happen.
But before we get to those customers, I just wanna take one moment to congratulate our award winners. Last night we held a Customer First Award Dinner for our customers, 40 of our customers who are doing the most innovative things with Okta, so a round of applause for them.
So with that, for everyone at Oktane, whether you're on stage, break outs, whatever it is, your time is now. You guys all know that technology is moving so fast. And you're here in this room, in this building, surrounded by some of the most forward thinkers in technology, security, and identity that there are around. So, take advantage of it. No matter where you are on your journey, my hope is that today's session and what you hear from these customers inspires you. I hope it challenges you to think bigger about what you can do with Okta and what you can do with your organizations.
There's one person in this company who I can absolutely say is equally, if not more, passionate about customer success and each and every one of you being successful with Okta products, and that is our co-founder and Chief Operating Officer Frederic Kerrest. So, please join me in welcoming him to the stage.
Frederic K.: Thank you. Good morning. It is great to be here. This is always the most exciting week of the year for me, without doubt, to spend so much time with our employees, customers, partners, investors, prospective customers, and talk a little bit about what's happening in technology and where we're all going. From a quick view, although it's kind of hard to see with all the glare, it looks like we have very good attendance this morning, which I'm very excited about. Probably number one because, as Krista mentioned, we're not in Las Vegas, and number two, after years of lobbying, I finally convinced our dear CMO Ryan Carlson and his Marketing Leadership Team to move the Customer Appreciation Party from the night right before the Customer Keynote to the night right after. And something tells me that might lead to these numbers as well, which I'm very excited about.
So, it's hard to believe that this is our seventh Oktane. We started in 2013 on this block, at the Intercontinental Hotel right next door. There were about 350 people there that year. This year, from what I understand, we have over 4,000 people in attendance at Oktane, which is a 50 percent compound annual growth rate, or CAGR in Wall Street parlance.
Now, I don't know if you can tell yet, but in eight short quarters as a public company executive, I've already been thoroughly brainwashed and I'm only using Wall Street parlance from here on in.
What's even more amazing is that we're celebrating our 10-year anniversary. We just celebrated it a few months ago. Thank you to everyone in this room who's made the last decade so special. We certainly would not be where we are here without all of you. And a lot has changed at Okta in the last 10 years, undoubtedly, and also in my personal life.
We started the company in the spring of 2009. At the time, I was engaged to my now still wife, which is great. Yes. And I will admit though, for those of you who know me, I am a little bit of an organizationally focused person. So, when we started the company in the spring of 2009, even though my wedding was only in the fall, we had actually already sent out all the wedding invitations.
Now, I'm not gonna lie to you and tell you that Todd was actually on the first set of invitations. But that summer my wife said to me, I think you're starting a company with this guy and it might last a while, so you might want to invite him to the wedding. So, I'm very happy that worked out.
As you can see in the picture, I was very tall and good looking back then, I had a full head of hair. But they say about life with children, that the days are long, but the years are short, and certainly I've got a little less hair to prove it. As my five-and-a-half year old son put it the other day, your hair's getting very silvery, Pappa, to which his three-and-a-half year old sister responded, what does silver mean? It's just white. I'm glad you all find that entertaining.
Now, if you had told me 10 years ago that I would today have 1,500 awesome coworkers, 6,000 customers authenticating millions of people every day on the service, with hundreds of millions of users under management, I would certainly have taken that in a heartbeat. But at Okta we often remind ourselves that we are just getting started. And why do we say that?
Well, in God we trust, all others must bring data. I'm sure you've seen this sign, it's a placard in someone's office. I'm not particularly religious, but I do endorse the saying. So, we're gonna start by looking at some data this morning.
When we started Okta in 2009, IT was about a $3.2 trillion a year business. Enterprise software was about 223 billion, and software as a service was about 7 and a half billion, okay? A very small sliver of that pie. So, let's fast forward 10 years to 2019, where we are now. IT has grown by about 20 percent, which is great. That's a pretty big base to grow on. Enterprise software has doubled in size, again very, very good. But look at software as a service, 12X.
Now, it makes sense for all the folks in this room. You know why. It's a better way of doing things, the return on investment, total cost of ownership, time to value. But software as a service is still less than 25 percent of enterprise software spend and less than 2 and a half percent of overall IT spend, which is remarkable.
Now, what does that tell us? Well, it tells us a couple things. First of all, it is very early in the shift that we are seeing right now. The opportunity ahead of all of us in this room is immense. It also tells us that you are all in the right industry. There's a lot of job security and growth in the years ahead just in continuing to move all of our organizations forward with the technology that's out there today.
But we've come a long way in the last ten years, right? 12X software as a service growth, almost $100 billion of revenue is phenomenal progress, undoubtedly. And why are we witnessing such tremendous Cloud growth. Well, there are three big reasons and we're gonna talk about them today. Every organization is moving to the Cloud, every company is becoming a technology company, and everyone is prioritizing security. So, today we're gonna talk about these three mega-trends, we're gonna understand in better detail what they are, we're gonna look at some interesting supporting data so that we can better understand them, and finally we're gonna speak with some customers, some practitioners, about what they're seeing and doing out there in the wilderness.
Now, what do I mean when I say that every organization is moving to the Cloud and every company's becoming a technology company? Well, here's what you, the most forward thinking information technology and security leaders in the world, are telling us that you're focused on. And we're gonna hear more about this, in detail, with customers this morning.
So, why is every organization moving to the Cloud? I talk about it, for those of you who have heard this before, in terms of core versus context. What does that mean? Well, think about this microphone that I have here on my ear. I was gonna say lapel, but it's so modern these days they put it on your ear. What business are they in? They're in the microphone business, so what do they care about? They care about audio technology, they care about physical design. How well they run an email server is not a sustainable, competitive differentiator in their business today.
Now, we realize for many of you that you have a lot of that context in house. You've been managing it for a lot of years, but this microphone company should outsource that context, that email server, to someone who's an expert. That's all they do. Google, Microsoft, other providers out there. For many it's a journey, we understand that. If you're a large organization, you've been in business a long time, you've had to manage that context, there haven't been alternatives for you, versus younger organizations like Okta, just 10 years old, born and bred in the Cloud, we don't have any of that context to manage ourselves.
With that being said, I know that the large organizations in the world, they still want the same thing as young companies. They wanna reduce costs, they want to attract a new digital native workforce, they wanna increase efficiency, they wanna support growth, they wanna plan for the future, they want all these modern steps as they go forward. Which is why I'm very excited to present this morning our first every Digital Enterprise Report. We're gonna get a little more insight.
We surveyed over 1,000 technology leaders over the past few months, at some of the world's largest organizations, and we asked them about their technology, stacks, their priorities, how they were thinking about things, and we're gonna share our findings with you, both this morning and in the times ahead.
First fact that we pulled out of the report. Shocker, Clouded option is on the rise. More than two-thirds of the world's largest organizations expect the number of Cloud based applications to increase in the coming year. Now, you're probably thinking what I'm thinking, which is what are the other 33 percent doing? I have no idea. But if you work at one of those companies, we are hiring across the board, so please email me after the session.
Secondly, folks are just getting started. Seven out of 10 of the world's largest organizations are less than halfway to what I would call their known today Cloud end state. Why do I say known today? Well, if anyone thinks that they know what their end state is, they just clearly have not been in IT long enough to know that there is no end state because Cloud, or any technology, end state really is a moving target. But the world's largest organizations are investing in software as a service, infrastructure as a service, platform as a service to reduce costs, accelerate efficiency and growth, enhance security, but they're just getting started.
Let's here first this morning from two companies who are doing just that.
Hitachi Video: Hitachi's mission is to develop original technology and products to solve society's biggest challenges. We are about 108-year old company with about 300,000 plus employees. The pace of technology change is more rapid now than ever before. Before, IT and CI's role was to provide technology to random business. Now it's about leveraging technology to transform and disrupt the business.
McKesson Video: McKesson is a Fortune 6 company, we own over $200 billion revenue every year, and we have 78,000 employees. People probably recognize it in its core business state, which is delivering medicines and solutions to hospitals, pharmacies, sometimes direct to patients. But we're also involved in many other interesting areas, including clinic delivery and nursing care.
McKesson's becoming a technology company, but we clearly ... our foundation is in health care. But the experience is, technology's playing a massive role in the way that that delivery occurs and the experience of the patient.
Frederic K.: So, please join me in welcoming to the stage this morning Ashish Sanghrajka, the CIO of Hitachi, and Spencer Mott, the CISO of McKesson. Gentlemen. Morning, nice to see you. Spencer, nice to see you.
Well, thank you very much for coming, gentlemen. It's nice to see you this morning. So, Spencer, let's just start with you. McKesson, a small, little company, $200 billion of revenue. We're almost there ourselves at Okta.
Mr. Sanghrajka: We believe in that.
Frederic K.: Thank you, Ashish, at least one person believes me here. Okay. McKesson delivers about a third of all pharmaceuticals in North America today. Why the move ... such a large organization, why the move to the Cloud now, why are you thinking about moving your business forward?
Mr. Mott: Yeah. So, there's two components, really. I mean, there's many factors, but two main components. The first one is health care is changing rapidly, and a lot of that is being driven by I'd say consumer expectation, but really with the patient at the core of everything we do. So, in a similar way to consumers leverage other parts and services, there's an expectation of an [inaudible] experience. Any device, anytime, anywhere. So, that's number one, forefront. And it's really exciting that that's being driven by not only a realization within life sciences, and pharmaceuticals, and the health care system overall that we should be driving that experience, but also the patients are raising this expectation it's gonna be delivered.
The second component is, if we look at the continuum of the patient journey, if you like, throughout the life cycle of touching health care, we touch many parts of the ecosystem. There's data being gathered all the time. We've got to connect that data. That's the opportunity in health care so that we understand what the patient's needs are, we understand how to treat them better, and again put patient right at the very center. So, that's an area through ... enabling through identity, we can really ignite what we can do in health care and actually join all those data pieces up, and provide better outcomes for patients.
Frederic K.: That's great. And obviously you've done that, McKesson is a big conglomerate. Talking about big conglomerates, Hitachi is a combination of 800-plus companies these days, one of the largest Japanese conglomerates. Certainly, as you have made your move to the Cloud, there have been plenty of challenges pulling all that together.
What were some of the most interesting ones and how did you overcome those?
Mr. Sanghrajka: So, for Hitachi we ... as you mentioned, we are about a $90 billion company, more than 800-plus companies. So, because of our age and our federated structure, we have a lot of legacy infrastructure. From a company perspective, we are transforming from being a product company to a solution and services company. So, leveraging our 100 years of leadership in operational technology and products, and combining with IT and trying to become an industrial IT leader.
In terms of IT, we have three major drivers basically. One is about how to drive operational efficiency and productivity to reduce costs, to improve margins. The second one is revenue growth, and the third one is how do we use technology to transform business model. The third is very challenging. We started on a Cloud transformation journey about four years ago. And as part of that, one of the key thing was about using Cloud as a technology not only to modernize It, but to standardize and consolidate our infrastructure.
We had three major challenges as we went onto the journey of Cloud adoption. The first one was around how do we integrate the Cloud application with our legacy authentication infrastructure? The second one was about how do we do it in a scalable and a secure manner? And the third one, and which is the most important, was about how do we tell the word to the customers, the users, the seamless experience?
And so, we were looking at a partner and Okta basically fill in the ... what was the right technology for us to help [inaudible] our adoption to Cloud and the Cloud journey.
Frederic K.: That's great. And so, it's very exciting for me to be on stage with two Fortune 100 CIOs and CISOs and it shows, I think, the evolution of IT and security and identity, given that both of you now own identity and access management, which are key pieces of your businesses. How have you seen that evolution? You've obviously both been in the industry more than a year or two, so how have you seen that evolution happen and kind of gotten us where we are today?
It's a jump ball, Ashish.
Mr. Sanghrajka: All right, excellent actually. So, from a security perspective, for Hitachi security is very important. We implemented two factor authentication almost 15 years ago. For Hitachi, being in the business of providing infrastructure for public enterprises like rail and transportation, and also being in a space like consumer electronics, we have a different requirement from a security perspective across our different businesses.
For us, in the last many years security has become even more prominent as we look at connecting our products. So, about three years ago Hitachi established an independent organization in Japan, which is Information Systems and Risk Division, reporting directly to the CEO of the company. So, security is at the forefront for us.
And from an identity perspective, we wanted to make sure that we have a platform which not only helps us to drive the digital transformation journey, but do it in a secure manner.
Frederic K.: That makes sense.
Mr. Mott: Oh, I think part of that question is Cloud, why now, right? So-
Frederic K.: Yeah.
Mr. Mott: ... if we think about health care and life sciences, I mean we talked 10 years about one day when we felt like the Cloud would be more secure than-
Frederic K.: Yup.
Mr. Mott: ... [inaudible 00:22:30]. I think from a regulated industry, we're now in an environment in the Cloud whereby we have native tools and capabilities that really help us secure that environment and actually get us out of the below the line business.
Frederic K.: Yup.
Mr. Mott: And so it in a more secure, robust manner. So, I think that's one thing. And then, secondly, is just having very kind of vendor, supplier agnostic tools, including your identity stack. So, we can really fulfill that aim of having just a seamless, consistent experience, and actually connecting those different pieces of health care that generally don't necessarily work together that well. And commonality and common interest is around just having a single view of the patient, the patient's family, the physician, the pharmacist throughout that life cycle is super critically important. And actually Cloud can enable that and we can have the data in one place and really provide that better experience.
Frederic K.: And it can enable it better than it used to with all the disparate, on premises infrastructure that you had?
Mr. Mott: Faster, better, cheaper.
Frederic K.: Faster, better, cheaper, amen.
Mr. Mott: Well, Ashish, I know we talk about ... just before this Krista was talking about love our customers, number one corporate value. I know that one of the successes that we got to celebrate as a joint team, Hitachi and Okta, just recently was the go live and global deployment that you had, which I think was pretty remarkable for your industry and something that I know that you received a lot of kudos from.
What were some of the tips and tricks that you think you saw through that process that might have changed in the past, and that also can help people kind of think about going forward?
Mr. Sanghrajka: The first and the foremost thing is about kind of having a commitment to the movement to Cloud, number one. In your enterprise, basically ... and especially for Hitachi where we are a federation of companies, there are always going to be naysayers in the organization. So, for us-
Frederic K.: Really? Really?
Mr. Sanghrajka: ... it took us 18 months, basically, to conclude [inaudible] to move to Okta. And it took us about 8 weeks to have the first roll out basically, right? So, again, I think one of the key things about having ... clearly defining short milestones, basically, and showing immediate success within the enterprise.
So, the approach we took was having a global perspective to this transformation journey, from an IT perspective and architecture perspective, yet having clearly identified groups who were excited, who want to move on to the new solution quickly-
Frederic K.: Yup.
Mr. Sanghrajka: ... and show success.
Frederic K.: Yup, that makes sense. Spencer, obviously security and compliance, you just touched on it briefly, highly regulated industry, so many different divisions, around the world, so all sorts of rules and regulations you have to think about. How do you ... and I know that when you and Andy [Zitney 00:25:13], your partner as the CTO, have really pushed an agenda of innovation at McKesson, and are really pushing this to the forefront.
Frederic K.: How have you balanced those concept of I know that I have to manage all the security and compliance, but at the same time I really wanna push this company forward with innovation?
Mr. Mott: Yeah. So, obviously, security and the compliance component is just table stakes.
Frederic K.: Yeah.
It needs to just occur.
Frederic K.: Yup.
Mr. Mott: Where you have kind of flexibility is how much of the security process is in stack, if you like, can occur behind the curtain-
Frederic K.: Yup.
Mr. Mott: ... so that you don't kind of put barriers or roadblocks in the way of whether development teams, or even consumers, or people that leverage our services.
Frederic K.: Yup.
Mr. Mott: However, on occasions, you wanna surface the trust component, and I know we've been talking a lot about trust and almost the emotion of trust.
Frederic K.: Yup.
Mr. Mott: You know, trust can exist initially, but it can be easily broken. And you can regain trust, but it's never quite the same trust.
Frederic K.: Nope.
Mr. Mott: So, there are occasions with everything that we do, we wanna surface up the fact that we're using tools, modern tools that really have the right controls, and they're sophisticated, and that we can say through that partnership, as we form that trust, that we're doing everything that we should be doing, not only from regulatory and compliance perspective, but also that we're doing it from a consumer trust perspective.
Frederic K.: Yup.
Mr. Mott: And the tools and capabilities within Okta really enable us to do that.
Frederic K.: Yup. And then, on a final note, pushing your organizations forward and thinking about innovation is not just about technology, it's not just about systems, it's not just about process, we're all in the people business. So, what are ... how do you think about retaining and recruiting a millennial workforce in this modern age? No offense, but people look and they say, this company's been around 100 years or 200 years, how do you say, yeah, but check out why ... here are the reasons you should come, and here's how you should think about it, and here's where your career's gonna go with that.
What are some of the things you think about?
Mr. Mott: Yeah. I actually wasn't there at the beginning for-
Frederic K.: You weren't.
Mr. Mott: ... no.
Frederic K.: I meant in more recent times, Spencer.
Mr. Mott: Well, we talk a lot about attracting talent, don't we.
Frederic K.: Yup.
Mr. Mott: We don't talk a lot about retaining talent. So, if I think about talent, there's probably four components. Crucially, you've gotta give ... you've gotta have a meaningful mission or the works got to have some sort of relevance to it. And then it's really just a case of pay them well, give them a nice work environment.
And then, the third one is really around using the tools that really enable you to do your job very well. So, these tools should feel like they're modern, they should be kind of Cloud native, and they should be very quick to deliver value.
Frederic K.: Yup.
And be very adaptive, right? So, if we look at the iterations of Okta, it's very rapid. And we talked before about one of the reasons that we went with Okta is more listening than speaking. So, we see that we get the features, and the growth, and the enablement that we talk about, and that we ask for, and it happens very rapidly.
Frederic K.: And probably kind of a consumer experience, bringing that into the enterprise, I'm sure that's-
Mr. Mott: Yeah.
Frederic K.: ... gotta a big piece of that as well.
Mr. Mott: Yup.
Frederic K.: Yup.
Mr. Mott: Ashish, [inaudible 00:28:11].
Mr. Sanghrajka: So, for Hitachi, the culture of the company is important. So, even though we are a 100-year old company, our culture, which is still valid in terms of harmony, pioneering spirit, and sincerity. Attracting the talent is important. And as IT leaders, we need to make sure that we're create an environment where people can come in and show progress, and show success.
As IT, also, we need to transform with the pace of technology change, to give an opportunity for them to be able to work in an environment where they can use modern tools and modern IT environment to contribute to business success. So, I think that's very important [inaudible 00:28:50].
So, adoption of Cloud, again, is important. Bringing in the consumer relation of IT into the enterprise is very important. Focusing on users and driving the user experience, and providing the tools for the new workforce to create those solutions is very important.
Frederic K.: That's great. Well, Spencer, Ashish, thank you very much for being customers and, obviously, for your partnership. Please join me in thanking them for their time this morning. Gentlemen, great to see you. Thanks, Bud.
Frederic K.: All right. So, now I'm gonna talk for about 15 minutes about digital transformation and everything that it means kind of to me and everyone else in this room. Does that work for you? Yeah, perfect. Okay.
Frederic K.: So, a grab bag term that I don't care for because it's not very descriptive. What it practically means is that every company has to become a technology company. The change in acceleration that we are seeing today in technology is only gonna continue, and it's changing industries as we know them. You heard some examples right here. But becoming a technology company is easier, obviously, when you're a small company like Okta. But some of you have been around a 100 or 200 years. Not as individuals, but as organizations.
Frederic K.: Take Ford for example. Ford's been around 100-plus years. 200,000 employees, over $150 billion in revenue, 10,000-plus dealerships around the world. Well, I'm gonna share a quick personal story. My grandfather Alfred immigrated to California in 1938, and a few years later he bought this 1931 Ford Model A. In 1960, he sold it to my mother's first cousin and over the past few years I heard about this car. I tracked it down, and I kind of convinced my mother's cousin to sell it to me, so that I could make sure to keep it in the family for the generations ahead.
Frederic K.: Now, I have been hinting to my wife since I met her, about 20 years ago, that someday I would be getting a classic sports car. So, you can imagine the look on her face when I called and said, I finally bought a classic car and then rolled into the driveway with this. After renovating it, which is exactly what it looks like right now, it sounds great. It purrs like a kitten. But there's definitely nothing digital about it. As my son understood when he tried to show up with his iPad and connect it over Bluetooth, I said there's no Bluetooth going on there.
Frederic K.: Now, flash forward to 2018. Ford told Wall Street just last year that by 2022 they would invest $11 billion in the coming years to create 40 new electric car models. They're literally betting the company on this move, which is why I say every company has to become a technology company.
Frederic K.: Now, why are companies, large and small, trying to become technology companies? Well, it's because software is eating the world. Software is the great equalizer. The Titans of yesteryear, the Vanderbilts, the Morgans, they owned physical infrastructure. Now anyone can write code with a cheap machine from anywhere. It's a more efficient and effective of doing things. Many things, including customer experience. The iPhone has changed our consumer expectations, and those consumer expectations have now been brought into the enterprise. And digital natives, who might have never hailed a cab in their lives, are coming into your workforce. And they're the consumers that you want buying your products or building on top of your platforms.
Software is eating the world, which is great, but who's going to build all this software? No one has enough developers, and the problem is getting worse, not better. Today there are over 200,000 open developer jobs in North America alone, and we're only minting 30,000 new computer science grads every year. Well, I'm not going to insult your basic ability to do math because I know you're all very bright. 200 divided by 30 means it would take seven years to satisfy the demand for talent, and that's assuming that that number wasn't growing every year. So, why would you leverage your precious resources building software, context software, that is not core to your business?
If you aren't transforming yourself today, your competitors are, or there are new organizations sprouting up to disrupt your industry. Here are a few well known examples from hospitality, financial services, health care, some of the largest industries in the world.
Now, if you've been around for 100 years like Ford, you have great advantages, you've got reputation, you have legacy, you have market position, you have an extremely strong customer base, but you cannot be left behind. You need modern technologies to build better customer experiences. 50 percent of the world's largest organizations, according to the report that we made, have a formal strategy to digitize their business, and hopefully the other half have already done so.
Sound awesome? It is. It's also really complicated. So, let's talk next to two companies who have done this very successfully. Please join me in welcoming to the stage Ramiya Iyer from Albertsons and Mike Towers from Takeda.
Frederic K.: Hi, Ramiya, nice to see you.
Ms. Iyer: Nice to see you.
Mr. Towers: Fred.
Frederic K.: Mike, nice to see you. All right. Modernization, let's start with you. Albertsons, 20 brands, a major acquisition, been around for a little while. So, talk to us a little bit about innovation and how you think about modernization as you're leading your organization into the future.
Ms. Iyer: Like you said, 20 banners, 35 million customers walking every week into our stores-
Frederic K.: Yup.
Ms. Iyer: ... so, we have a lot of legacy to protect, as well as the consumer is changing. I would say as the second largest grocer in the United States, we see a spectrum of customer. We have customers who have been with us for ages, like Acme as our brand which is 100-plus years old. They might have a personal relationship with the butcher, and they're a food connoisseur, and they like I want a particular cut, and the butcher does that for them. And then, you have the millennial. They are like, I don't wanna talk to anybody. I don't even want to get into your store, please deliver the grocery as soon as I can think about that grocery.
So, if you look at spectrum, the way we can meet this demand of our customer is through innovation, through our digital transformation. A lot depends on upon where we [inaudible] is to say, each customer is leading its own custom digital transformation. So, wherever they are in that spectrum, we want to meet them over there.
Frederic K.: That's great. Mike, you are at Takeda. Many in the audience might not be intimately familiar with one of the 150 largest organizations in the world. And when you think about how you're gonna bring this organization forward, you also had a previous experience working with us at Allergan, and in both cases really thinking about digital transformation and, again, regulated global, complex environments.
What's your mindset there?
Mr. Towers: Yeah. So, Takeda ... it's funny, you were talking in the session before about old companies. Takeda's five years younger than the U.S.
Frederic K.: Wow.
Mr. Towers: Founded in 1781.
Frederic K.: But who's counting?
Mr. Towers: Yeah. So ... and I haven't been around that long either or have that long. But I think in general, from a digital innovation perspective, you mentioned my previous job at Allergan, very consumer centric when you start thinking about medical aesthetics and obviously that experience of logging in and being able to look at your treatment history or whatever. And Takeda is much more R and D centric, and much more science driven. And all of that science is moving to be math based.
Biology and chemistry, in the pharmaceutical industry, has almost become a commodity. How do you edit genes? How do you do sequencing? All that is becoming mathematical and the whole digital transformation of supporting that, and obviously an outreach to your patients to make sure that they feel comfortable, and safe, and knowing that you're ... got their back, being very patient centric, all of that is becoming digital as well.
Frederic K.: Yup. Now, you joined Takeda for many reasons, one of them is they just did one of the biggest Japanese take overs ever of Shire Pharmaceuticals, bigger than SoftBank's ever done. How do you think about mergers and acquisitions, and putting these two giant organizations together, and what are some of the advantages of having a Cloud based or a forward thinking approach on these things?
Mr. Towers: Yeah. So, obviously, I know a little bit about integrations. When I was at Allergan, we did about 50 in 4 years. And I think, frankly, was one of the reasons why I was targeted at Takeda. But with the Shire acquisition and with any acquisition, I think being Cloud based you require that level of independence and you require that level of above company capability because there are certain part of the business, frankly, where the integration takes about three days-
Frederic K.: Yeah.
Mr. Towers: ... and they wanna move forward. We call it the speed of business. You still have to sell, you still have to innovate, you still have to get products to patients. And then, obviously, there's a lot of the company that has to integrate and needs cross-company access pretty quickly. So, all that, without the weight of the legacy on either side, it's important to do that from a Cloud perspective.
Frederic K.: Yup. And Ramiya, obviously in your business there's a lot of physical infrastructure. 2015 a huge merger between Albertsons and Safeway. What was that experience like? And obviously, as you think about consumers, you talked about all the different brands and the flagships. How do you put all those together, and you wanna make sure that you kind of keep moving everything forward?
Ms. Iyer: So, 2015, Albertsons bought Safeway. And one of the things is like, if you talk to anybody in the Bay Area over here, probably they don't even know what Albertsons is. There was a few Albertsons stores that we closed, but for the Safeway customer nothing changed. If you are on the East Coast, probably you know Acme, you know Shaws, you know ... if you are Texas, then you know United. And a lot of customers do not know that this is all under the Albertsons umbrella. And that's very important to us. We want to be your favorite local superstore.
Now, if I have that aspiration, we start from that perspective, saying, okay, we need to have differentiated experiences-
Frederic K.: Yup.
Ms. Iyer: ... but the backbone cannot be differentiated. Anybody who is in technology and you've been through the journey, if you have 20 different systems, your speed of innovation is gonna be extremely slow.
So, we put a lot of focus into integrating the backbone, so there is a single backbone which runs across all these banners that we have. And then we said, customer and how do we merge our customers? Again, if you are going from NorCal to SoCal, Safeway to Vons, why do you need two separate identity?
Frederic K.: Right.
Ms. Iyer: And it creates a different problem for us in the back, from a data perspective. How do I understand the lifetime value of this customer who moved from West Coast to East Coast? So, those are some of the factors we paid a lot of attention to, in addition to merging the organization and the people.
Frederic K.: And when you think about the cohesion that you wanna create of that end user identity, not only so that you can see on the back end everything that's happening, but also so that everyone in the audience, as consumers, can have a very seamless experience from the mobile, to the web, to the different brands.
What were some of the trade offs you thought about? Obviously, there's a strong history of building a lot of infrastructure and technology. How do you think about the build versus buy trade offs and what were some of the thought process there?
Ms. Iyer: So, we were very clear. We wanted a single identity for our customer. Whichever way we want you to be local, we had multiple identities for our customers. So, when we started the journey with Okta ... this is where we picked Okta ... for the strength of bringing these identities together.
From a build versus buy perspective, anything can be built, in my opinion. Being an engineer at heart, I believe in that. But at the same token, you need to figure out where your investment dollars go, right? Is this a differentiator? The way I look at it, as I was looking at the stage and said, okay, there's electricity that powers everything up, but is that a differentiator? For us, identity is something like that. It is the backbone in which we are kind of consolidating everything together, but at the same token, this is not what is gonna set us apart from a customer or marketplace perspective.
Frederic K.: Now, don't get me wrong. I wanna make sure that you don't confuse my identity with someone else's at the supermarket, but when we're talking about patient data, you wanna make sure that my prescription's not given to someone else.
Mr. Towers: Right.
Frederic K.: How do you think about that in your kind of industry, where you just said you wanna move at the speed of business, which is days, and at the same time you need to be absolutely sure that you're getting all that 100 percent right every time?
Mr. Towers: Yeah. So, in all parts of the life sciences value chain, identity is critical. I mean, in a company like Takeda, and many of other pharmas are doing this as well. I mean, obviously, finding a cure for cancer is not easy. We can't do that alone, we need partners to do that. University partners, biotech partners, and having that engagement secure is very, very important.
But obviously, from a patient identity perspective, it's absolutely critical. And those of you who know me know I'm very passionate about this. Imagine a world where you flew to an airport for the first time and they made you fill out a paper on a clipboard because you hadn't been there before. We do that with health care, we accept it. We've gotta figure out a way to get identity in the hands of the patient, across insurance, across the hospitals, across the medical practices. It's fundamentally important when you start transitioning from, I would say, therapy delivery to health management, identity's the core of that. And you're gonna have to be able to insure that your data is safe and that you can do that securely.
And all of us are working really hard, with Okta, with others, frankly with peers and competitors of ours, because we owe that to the patients to be safe. When you're dealing with oncology, you're dealing with Alzheimer's, you're dealing with Parkinson's, you shouldn't have to worry about whether or not your data is secure. So, we owe that as a responsibility to make that happen.
Frederic K.: Yeah. I mean, talk about trust there.
Mr. Towers: Yup.
Frederic K.: That trust seems pretty central.
Mr. Towers: Right.
Frederic K.: I mean, I wanna make sure that the food that I'm buying, I wanna trust that it's organic, but I definitely wanna trust that you're giving the medication, the right information to the right doctors, in the right way.
Mr. Towers: Yeah. And at Takeda, it's part of our value system. Patient trust, reputation, and business in that order. Trust is fundamental to not only making sure that patients feel comfortable with our medicines. I mean, the patients become much more empowered. You go into the doctor's office and you talk about a treatment, you hear about that. And if you're dealing with a really, really tough therapeutic condition, you wanna make sure that you trust everybody that's involved in giving you that medicine and making you feel healthy.
So, it's ... and the last thing that you want is to have some sort of trust issue, where maybe people don't feel safe interacting with your systems.
Frederic K.: Yup. Now, I know you're both technologists, as are many in the audience. So, what are some of the technologies that you're most excited about, that you see coming into ... cutting edge, bleeding edge, into your environments? One of them that we talked about was obviously some of the blockchain based things.
We'll start with you maybe, Mike.
Mr. Towers: Yeah. So, I worked with a gentleman who's an entrepreneur in California about digitizing health care better, and he tells a story about how he had a patient record debate with this hospital. And when he finally got the patient records, it was like 9,000 pages and there was a debate about whether or not ... who owned the data. There's still some hospitals in the country, frankly, who think they own your data and not you.
Blockchain is one of the fundamental things we're looking at, with a couple of Okta partners and Okta themselves, to have the patient control. You want to give certain records to your insurance company, you wanna give other records to your eye doctor, you wanna give other records to your oncologist, you wanna give other records to your pharmacy.
Frederic K.: Yup.
Mr. Towers: That's all in your hands, you control it and it's your data, and blockchain is one of the areas that we think can unlock that capability.
Frederic K.: That's great. And Ramiya, we'll end with you, what are some of the things that are coming into the grocery business and the direct to consumer business that you think are most interesting, and you're excited about in the years ahead?
Ms. Iyer: We spoke about fresh?
Frederic K.: Yup.
Ms. Iyer: I have to guarantee fresh for you?
Frederic K.: Yes.
Ms. Iyer: Earn your trust?
Frederic K.: Yes. Earn my trust.
Ms. Iyer: How do I do that? Blockchain. We are investing in blockchain, too. So, in terms of ... you must have heard the romaine lettuce that got recalled. Time and again, something or the other thing gets recalled. How do we assure that the romaine that we sell in our store is not the tainted one? So, there is both direct financial impact, as well as a consumer benefit to blockchain.
The other one that we are very excited and we are focused on is robotics and automation.
Frederic K.: Okay.
So, we announced our micro fulfillment center. This is, again, for the consumer who doesn't wanna come into our stores, they want speedy delivery. You talk about millennials, I don't know what Gen X and Gen Y will do. They want ... they think about a recipe, it needs to show up to their house. So, we are working very hard on that front, how do we shorten the lead times.
Frederic K.: That's great. Well, Mike, Ramiya, I want to first thank you very much for being customers and for your partnership. And please join me in thanking them for their time this morning.
Ms. Iyer: Thank you.
Frederic K.: Thank you, see yeah, Ramiya. Thanks Mike, I appreciate it, Bud.
That is some fancy walk off music you guys got. Okay. The third and final pillar we're gonna talk about today is security. Spoiler alert, every organization is very concerned about, and hence is prioritizing, security today. But why is that? What has changed in our environments and in our lives?
Well, 20-plus years ago, when I first walked into an office, my first job, it looked something like this. A desktop, hardwired into the network, a badge to the building, an RSA token. It didn't really matter if I left that organization, or I exchanged jobs, when I was taken out of the Oracle databases that controlled my user access, because I couldn't really get access to anything anyway if I left, right? They took away my badge to the building, my VPN token, my laptop, and I was locked out.
Well, think about the trust and security then. In that model, the trust and security is the responsibility of the network perimeter and the firewall, and there was untrusted network outside that perimeter. The model was problematic, as we all know now, because when that perimeter was breached, attackers got very easy access to a company's privileged information.
So, what does the model look like in today's world where the traditional firewall model no longer works the way it was originally designed for, every company is becoming a technology company, and every company is constantly under attack?
The acceleration of Internet and Cloud technologies has created entirely new ways of working, which is great. It's great for the economy. The S&P 500 has grown 10X since the early 1990s and has doubled in the last six years alone. Why is that? Well, flexibility, opportunity. Consumer technology has bled into the enterprise.
Many executives I meet with today are certainly iPad first. Second of all, more mergers and acquisitions, more third parties to work with, that means more business collaboration. And third of all, employees can work from anywhere. Everyone loved that wifi in the airplane, right, until it started slowing down somewhere over the middle of the country.
The avocations today, that stack, that one application stack has disintegrated, and we've clearly moved to a best of breed world. The same is true, by the way, for devices, for operating systems. But this freedom is not free, and there's more to worry about and certainly much more to protect. The world is just waking up to the need for a new framework for this new paradigm, zero trust. You've undoubtedly heard about it before.
Okta is uniquely positioned to enable our customers with this framework. It's all about contextual access. It throws away the idea of a trusted internal network and an untrusted external network, and instead it's about securely enabling access for the various users regardless of their location, device, or network.
Zero trust requires a few things. It requires you insure the right people have the right level of access to the right resources, in the right context, and that that access is continuously assessed. Put very simply, the core principle here is never trust, always verify.
Now, if you're a young company like Okta, all in the Cloud, you can start building or you probably already have a zero trust framework today. It's a lot harder if you're bigger and you're dealing with legacy infrastructure. Hybrid IT, compliance, regulation, and much more. But there are ways to get started, and 60 percent of the world's largest organizations have, or are at least building, a zero trust strategy today.
Let's hear next from two customers who are certainly on the leading edge of this movement.
AECOM Video: AECOM is a global engineering, design, and construction firm coming up with innovative solutions to some of the world's most complex challenges. From delivering clean water and energy, to building iconic skyscrapers, stadiums, and airports, AECOM is helping to plan cities and restoring damaged environments in some places. AECOM operates on all seven continents and over 150 countries.
NASDAQ Video: Feel that? That's the beat of global markets, the rhythm of the world. But to us, it's the pace of tomorrow. With ingenuity, technologies, and markets expertise, we create the possible. And when you do that, you don't chase the face of tomorrow. NASDAQ, rewrite tomorrow.
Frederic K.: So, please join me in welcoming to the stage Sarah Urbanowicz of AECOM and Heather Abbott of NASDAQ. Ladies.
Ms. Urbanowicz: Hey, full house.
Frederic K.: Yeah. You can't actually see anything beyond the first five rows, but-
Ms. Urbanowicz: That's okay.
Frederic K.: ... I've heard a little bit of laughter from like the 10th row, so I think they're a few-
Ms. Urbanowicz: So, they're there.
Frederic K.: ... more people here. I can't really see anything though. Anyway. Thank you very much for joining us this morning, it's great to have you here. Sarah, let's talk ... let's talk with you, zero trust, you think a lot about it, what does it mean to you, how do you think about it at AECOM?
Ms. Urbanowicz: I don't wanna hurt your feelings.
Frederic K.: Sorry?
Ms. Urbanowicz: I don't wanna hurt your feelings.
Frederic K.: Oh. That's already happened like five times this morning.
Ms. Urbanowicz: I think we're-
Frederic K.: I'm good.
Ms. Urbanowicz: ... I think we're approaching digital transformation territory.
Frederic K.: Oh, you wanna talk about digital transformation instead.
Ms. Urbanowicz: No.
Frederic K.: Okay.
Ms. Urbanowicz: With the zero trust.
Frederic K.: Zero trust.
Ms. Urbanowicz: So, it's a good concept, it's a good framework.
Frederic K.: Great.
Ms. Urbanowicz: It is. I'm supportive of all the things you said-
Frederic K.: Great.
Ms. Urbanowicz: ... I'm just exhausted from the term. It means something different to everybody, which means that eventually it will mean nothing to anyone.
Frederic K.: Perfect.
Ms. Urbanowicz: Having said that, I'll start with what it's not. It's not a project, it's not something you check off the list. You don't go seven and a half months later and say, oh, we are officially zero trust. But the principles behind it make sense. I think we came to this, though, from good old common sense. It's not new.
Ms. Urbanowicz: So, I started out in audit, and we had a saying, trust but verify. So, that concept's not new. I think-
Frederic K.: I got that one right.
Ms. Urbanowicz: ... you got that one right.
Frederic K.: All right.
Ms. Urbanowicz: I think the difference is that the perimeter that we spent so many years and put so much blood, sweat, and tears into protecting dissolves on us almost overnight. So, between Cloud, and BYOD, and I don't have to tell all of you. And so, moving your strategy, or your framework, or whatever you wanna call it to be you need to focus on making damn sure that the person trying to access it is who they say they are just kind of makes sense.
So, call it zero trust or whatever you wanna call it, the principle's there, but I think it's just a good framework. It's not a project or a line item you check off.
Frederic K.: Got it. But certainly user centric.
Ms. Urbanowicz: Absolutely.
Frederic K.: User centric.
Ms. Urbanowicz: Absolutely.
Frederic K.: So, Heather, let's talk about NASDAQ, the largest electronic stock markets, plural, in the world. You connect millions and millions of people obviously, 80-plus countries. How do you think about user centric security with all the different components that you have there?
Ms. Abbott: Yeah. I'd put it in a couple of buckets here. First of all, we think of it in terms of the vigor of our program, and our program is built around the newest framework. And we're accountable to so many, countless regulators and the Board of Directors, and it's definitely the top level priority from a senior management perspective as well.
I'm responsible for a number of application development teams. So, I'm constantly trying to balance the user experience and choice with availability, and performance, and the security posture. And I end up with ... one of my applications is used for secure collaborations for Board of Directors, to help improve corporate governance. And I get people calling in and saying, why did I not get prompted with security questions.
Frederic K.: Wow.
Ms. Abbott: So, the idea of transparency and it really is a constant balance between choice. And, of course, anything that you put into the workflow eventually will break. So, all of those considerations require a constant balance.
Frederic K.: Nice job of awareness if people are calling and saying, where was the two factor?
Ms. Abbott: Yeah.
Frederic K.: That's pretty good. Okay. So, Board of Directors level conversation. Certainly that's something that we hear more and more, is security is not just something to where you check the box once a year, but you come more and more often. Sarah, certainly I know that you work ... AECOM works on very large infrastructure projects. The re-doing of JKF Airport, which is going splendidly, from-
Ms. Urbanowicz: Thank God.
Frederic K.: ... my perspective. So, certainly, when you go through those kinds of processes, I'm sure that JFK and everyone associated with that put you all through the wringer. But then, when you go and you talk to your Board of Directors, I'm sure they wanna hear a lot about the different pieces of security.
How do you take everything that you know as a technology leader, and your kind of advanced security knowledge, and then bring it back down to a conversation at a Board level for example?
Ms. Urbanowicz: So, I probably do it a little more directly and transparently than a lot of people do. So, specifically at AECOM we've been doing Board updates since before I was there. So, I've only been there almost two years, but I certainly didn't invent it there. But I do go every quarter and I do do a full Board review, and that is fairly new for us. And I attribute that to our Board and our leadership team recognizing that cyber is a business risk, which sounds like buzzwords. But if you know how your organization treats other real, true business risks, you should see cyber being addressed and followed, if you will, at that same level of visibility and that's what we're seeing.
Ms. Urbanowicz: It's not an IT thing, it's not a technology thing, it's a business risk. For some companies, dependent on what you do for a living, it's an existential risk if-
Frederic K.: Yup.
Ms. Urbanowicz: ... you don't get it right. So, I do go quarterly. And while I am supportive of people who prefer the red, the yellow, the green, the dashboards, the consistency, and certainly I do those types of updates, I've taken a little different approach. I've rolled up the sleeves just a little bit and started educating them.
Ms. Urbanowicz: I'm not drawing network diagrams, but I have gone a little bit deeper technically with our Board than what you might expect. And the reason for that is, I think I owe it to them, and they owe it to our shareholders-
Frederic K.: Yup.
Ms. Urbanowicz: ... to make that conversation meaningful. And if I'm putting up stoplights, and they're looking at it and thinking, this cyber stuff, I don't exactly know what it means, it does neither side any good.
Frederic K.: Yup.
Ms. Urbanowicz: So, we're starting to go a little bit deeper in explaining to them some of ... at least some of the concepts.
Frederic K.: That's great. Yeah, because obviously they have fiduciary duty-
Ms. Urbanowicz: Absolutely.
Frederic K.: ... to make sure they know what's going on.
Ms. Urbanowicz: Absolutely.
Frederic K.: So, obviously your digital strategy there, a lot more than a checkbox. I know it is for you, as well, because you are a born and built electronic stock market. So, clearly, digital strategy is not just a checkbox, it's the whole plan. How does that work at NASDAQ?
Ms. Abbott: Yeah. I'd say it used to be kind of just one of the key dimensions-
Frederic K.: Yeah.
Ms. Abbott: ... of the technology strategy, and now it's woven into every single technology strategy decision and conversation. And, again, that's at the senior management level, at the Board of Director level, at the regulator level. And then I think, just as importantly, internally I've seen a transformation in terms of an actual culture of security, whereas it used to be more of a check the box, you go through your annual security training. It's ongoing training across all lines of business, customer support, and it's well beyond just the technology team. And, of course, there's ongoing challenging, phishing type tests happening. And if you fail those progressively, there's progressive coaching and action that's taken. So, it truly is everyone's job.
Ms. Abbott: And then, as an application developer, we're really moving towards some of the tenets of zero trust around micro segmentation, from an application architecture perspective. So, it's not just the users, it's how the applications are architected from the ground up. And of course, at the machine level as well, so we're excited about advanced server access.
Ms. Abbott: But as we modernize our applications, and as we go to a more micro services architecture, we truly are getting to that least privileged, just service to service, if the communication is authorized based on what the application is doing.
Frederic K.: And how do you see ... we'll touch on advanced server access briefly since you brought it up. How do you see that potentially helping in your environment, or how do you manage things today absent a product like that, and what are some of the changes you're excited about?
Ms. Abbott: So, we have a number of tools that we use to manage privileged access to the most critical assets that we have. One of the tools that I'm sure is familiar to many people is the Jump Host, and with multifactor authentication associated with that. And so, I think that from what I saw in a couple of presentations yesterday, I think that advanced server access can make that smarter, and more seamless, and more secure based on better context, better algorithms, and then helping to scale it so you can shut down users immediately.
So, I think it holds a lot of promise to simplify and improve that.
Frederic K.: That's great, thank you. And then, Sarah, I know we have a good partnership, at least from our perspective, between AECOM-
Ms. Abbott: It is.
Frederic K.: ... and Okta. Good, I'm glad to hear that. We'll just share that with a couple of our friends here. So, we have been talking a little bit about advanced server access for a little while, and you had some very interesting feedback for us as well on ways that you thought AECOM might be able to use it internally.
Ms. Urbanowicz: You mean when I got really excited when you-
Frederic K.: Yeah, that time.
Ms. Urbanowicz: ... that time.
Frederic K.: That time.
Ms. Urbanowicz: Yeah. So, I'm excited about it for all the reasons that Heather described, but I'm also appreciative ... it strange that it's here ... because this is a problem we've been fighting for years. This is not new. Anybody who has lived through an attack involving lateral movement should be really excited with announcements like that.
But it's not the sexy stuff. It's not forward facing, it's not customer facing, it's behind the scenes, but that's the important stuff. That's the problems that we have to solve in order to ... if you work from the breach backwards, right, there's a core theme there almost always. For every headline you see, there was probably a popped identity involved-
Frederic K.: Yup.
Ms. Urbanowicz: ... and there's a good chance that some sort of administrative credentials were involved.
So, getting at the heart and the core, staying in your wheelhouse ... I love that you guys stick with what you do best ... but helping us solve some of those problems. They're not easy to solve or they would have been done by now. So, I'm very excited about it.
Frederic K.: Well, I guess I have to apologize we didn't do it faster at some [inaudible 00:59:55].
Ms. Urbanowicz: I mean, I agree with that. But it's here now, it's fine.
Frederic K.: Well, it sounds like [crosstalk] okay.
Ms. Urbanowicz: It's fine, it's fine. Yeah, it's good.
Frederic K.: Okay. There goes all that make-up right off my hand. Okay. So, we've talked here a lot, obviously, about security as internal. So, employees, managing critical resources. Let's talk briefly about customer identity facing.
So, when you work at a project like JFK, obviously I think AECOM has 80- or 90,000 employees, but that project at JFK is obviously not just you. It's a lot of different constituents. How do you think about ... because you're also responsible for that.
Ms. Urbanowicz: Sure.
Frederic K.: How do you think about security in that kind of distributed, customer facing, partner facing, vendor facing environment?
Ms. Urbanowicz: So, I feel like the attitude toward that is shifting. There is ... and Heather touched on this from an internal perspective, people asking for it. Our customers demand and expect, as well as our partners, that we're protecting their data.
Frederic K.: Yup.
Ms. Urbanowicz: So, it's not an uphill push anymore, right? Sometimes we get a little push back from the business because they ... understandably they're very customer focused and they don't want us to make things harder for third parties, but I don't think that's the case. I think, on the contrary, we receive the questionnaires, as I'm sure many people in this position do-
Frederic K.: Yup.
Ms. Urbanowicz: ... please answer these 479 questions in detail, just for me, about how you protect our data.
Frederic K.: I've never seen that report, but I've done several.
Ms. Urbanowicz: But I expect the same of our suppliers, in fairness. So, I think that extending that to third parties, introducing multifactor and all of the things that we are doing to protect our own data is a natural progression.
Frederic K.: Oh. That's great. And then finally, Heather, I'm sure that when you're running electronic stock exchanges in 80 different countries, you don't care too much about customer facing identity management.
Ms. Abbott: yeah. Well, a little bit.
Frederic K.: [inaudible] ideas about this. You're looking at me like I've got three heads.
Ms. Abbott: Yeah. I'd say we do have some of the same challenges that Sarah mentioned, just in terms of as you are working on bringing new business-
Frederic K.: Yup.
Ms. Abbott: ... it's so fragmented and we ... we go through, of course, all of the classic audit designations like SOCII and ISO 27001, but still it's such a challenge to scale that. So, we've got those designations, you created the portals, but it's just really difficult to keep up.
And just the, I'd say in the last couple of years, the escalation of regulations and of course, as you said, all the countries we operate in, it seems like the regulators are just catching up, which is sometimes frustrating from an innovation perspective.
Frederic K.: Yeah.
Ms. Abbott: But with GDPR and the New York BSF regulations, and more happening across the U.S. and globally, I think it's only going to escalate. And I think that customers are becoming so much more savvy, and that kind of speaks to my comment earlier as far as customers calling in because they're worried about-
Frederic K.: Yup.
Ms. Abbott: ... is it secure? So, I think we've got to think a lot about the transparency that we give as we improve algorithms and we're actually making better decisions, but helping customers understand what that looks like and what that means is important as well.
Frederic K.: That's great. Well, Heather, Sarah, thank you very much for being customers and for your partnership. And please join me in thanking them for their time this morning.
Ms. Urbanowicz: Thanks for having us.
Frederic K.: Thank you, ladies.
Ms. Urbanowicz: Thank you, take care. That was a lot of fun.
Frederic K.: Thank you. No, we don't care about customer facing identity management at NASDAQ. Sorry, bad question, Heather.
Okay. I wanna close this morning, our time together, with a very exciting announcement that I have. Over the last 10 years, we've taken identity out of the platforms, as you've seen, and we've made it its own first class Cloud. And as we've discussed this morning, the Okta Identity Cloud plays a critical role in today's fast moving technology landscape, where every organization is moving to the Cloud, every company's becoming a technology company, and everyone is prioritizing security.
We built a rich platform over the years of workforce customer identity products across an ever growing number of use cases. And when you think about what that means and where we're going, underlying all of this is the broadest, deepest integration network available. Which allows you to integrate and connect everything, from 20-year old technology to the bleeding edge start ups that are coming into your environments.
But there's always more that we can do. And for years now, we have invested our time and our energy in the ecosystem and always supported start ups who were focused on issues related to identity, security, privacy. Today we are taking the next step to formalize that support and I'm thrilled to announce Okta Ventures, a $50 million investment fund.
There's a thriving community of companies out there that are contributing to the identity landscape. And Okta Ventures will look to support the most compelling companies who share our vision and our values. With Okta Ventures, we intend to continue to strengthen the value of the broadest and deepest integration network catalog in the world with two particular areas of focus. Number one, enhancing customer success. Right in line with our first corporate value.
We're gonna continue to focus on innovations in areas that matter to all of you ... identity, security, privacy ... across cutting edge technologies. Artificial intelligence, machine learning, blockchain, and much more.
Number two, we're gonna continue to turbo charge start up development in these critical areas by providing a wide array of resources and guidance during the early stages of start up growth because we've been there and we know it's very hard. I'm also excited today to announce our first investment out of the fund. Trusted Key, a blockchain based digital technology and identity company that you're gonna hear a lot more from in the months and quarters ahead.
But at Okta, we're not just focused on making our company and our products better, we're also focusing on making our communities better. And I wanna talk about that next. Something I'm just as passionate about as building a long term, independent, important software company is giving back to the communities in which we work. Which is why we started Okta For Good before we went public. We made sure to formalize Okta For Good in our S-1 registration document and made it very clear to all public market investors that if they were investing in Okta, they were also investing, effectively, in Okta For Good.
Okta For Good's mission is to strengthen the connections between people, technology, and community. And we work hard to drive that mission and vision into everything that we do. We know there's always more that we can do for social impact, and it's all of our responsibility because technology should help everyone live a better life.
Please join me now in welcoming to the stage my close partner in driving Okta's social impact plan forward, the Executive Director of Okta For Good, the one and only Erin Baudo Felter.
Erin B.: Good morning, everyone. It has been a true honor and privilege to lead Okta For Good for the last two years. Okta For Good is our social impact initiative. It directs our most important resources, our people, our products, and our dollars, into our communities. And you heard Freddie say, our mission is really an extension of Okta's mission, to strengthen the connections between people, technology, and community.
Now, let's talk about community for a second. Todd welcomed you yesterday to San Francisco, our home town. Okta was born here, we've grown up here, and now we get to host all of you, our favorite people, here at Oktane. We know that as a company we are interconnected to the community around us. This is an amazing city, and it's also one dealing with the pressures of widening inequality.
We know we can't thrive if our neighbors are struggling. And that's why earlier this year, on the occasion of our 10-year anniversary, we made a $500,000 commitment to Tipping Point Community to address poverty and homelessness right here in the Bay Area. And we know that there's so much ... oh, thank you. Thank you. We know that there's so much more to do. It's not just about money, it's about the power of our people, too.
We now give each of our employees three days off to volunteer every year, and every single new hire in our home office volunteers on their second day of work. Last year we supported nearly 100 different nonprofits through volunteering, and to date we've directed 4,800 volunteer hours into our communities around the world.
But it's not just us. Our peers are stepping up too, and we're doing even more together. It's an amazing time for radical collaboration and collective action from the tech sector. Just two weeks ago we announced a new effort with our partners at VMWare, Box, Cisco, and Adobe. A joint effort to jointly fund a half a million dollars to TechSoup, a global network that provides the world's nonprofits with access to technology. The grant is gonna fund the development of a nonprofit digital transformation roadmap. It's the seed of a much longer term vision to help move a million nonprofits to the Cloud.
Yesterday you heard Todd talk about ... thank you. Yesterday you heard Todd talk about the promise of technology for organizations. We, at Okta For Good, have the privilege of working with nonprofit customers, many of whom encounter the same exact technology needs and challenges, oftentimes with fewer resources and even higher stakes. Let's take a look at one of these incredible organizations now.
NRC Video: Today the world faces incredible needs when it comes to displacement. We're talking about a total of close to 70 million people displaced in the world. NRC is an independent humanitarian organization. We work to help people who are forced to flee because of war or political conflict.
NRC works in 31 countries, spanning from Myanmar all the way to Columbia. In 2017, we managed to help 8.7 million. The main bulk of our work is direct aid. We do food assistance, we do education, shelter, information, counseling, and legal assistance. We speak on behalf of people who have no voice, so we try to protect their rights and their right to assistance.
We're seeing that technology brings us the opportunities to do more, and we can possibly do it faster. It's really about helping our mission drive forward and increase our impact.
Erin B.: Norwegian Refugee Council, or NRC, has been described to me as fearless. They are the first ones there in a crisis, they go where other organizations do not go. They're also fearless with the way that they envision technology playing a role in their mission. It is my sincere honor to introduce Pietro Galli, head of technology for NRC.
Mr. Galli: Good morning. Much more than a number. We just showed you in the video 70 million people forced to flee. Now, what does that mean to us? Alongside 14,000 other staff at NRC, that's why we go to work every day. That's why we get up in the morning and stay up late at night. This is the core of NRC, this is why we exist. We help save lives, and we rebuild futures, and we do this over a journey. This could be a few months or many years.
Today I'm gonna show you a bit of what we do, and I'm gonna ask you to come along on that journey. I would like you to think about being among those people that are about to flee and I'll ask you to think about three questions. The first thing is, what are you gonna take with you when you go? Where are you gonna go? And what do you hope to find when you get there? And whether you're doing this in a group like these women crossing from Syria to Iraq, or alone like this father with his daughter, crossing water, lakes, and rivers like these people in South Sudan, or on foot between Venezuela and Columbia, you're probably all gonna hope that it's gonna be safe on the other side and somebody's gonna help you.
And remember that anything that you brought with you, you had to carry yourself. So, you probably didn't bring a lot, and when you get there, you don't have much. You may have also run through checkpoints and people have taken away what you had.
So, how does it start? Well, this is where NRC and other organizations get in touch with you first. This is a picture of a registration where you're gonna be ask your name, your date of birth, where you come from and why. Sometimes it's on paper, sometimes it goes straight into a machine.
Now the next picture is different, there's not a lot of people. There's a wifi access point where we offer free access to refugees on the move. We learned this in the 2015 crisis in Greece, where over a million refugees came from Turkey. Now, there's stories of people landing on the beaches in Greece and asking two questions. The first one was, is this Greece? Have I made it to Europe, am I safe? The second question was, where can I find wifi? And for them, that was a connection back to the people that they left behind, the loved ones, to make them know that they have made it. But it was also a way to charter their path north because most of these refugees wanted to go to Germany, to the UK, to France, and so on.
So, back to our journey. You're probably gonna end up starting to live in something like this. This is the camp in Cox's Bazar in Bangladesh, just over the border with Myanmar. Or in something a bit more organized like this one in Jordan, there's even electricity. But these are all temporary solutions. And so ... sorry, one more. This is Northern Kivo in Congo, where I spent two years of my life working. This is not organized, this is among a local village, and you can see the new arrivals from the white plastic sheeting on top of the houses.
But these are all temporary solutions and we want to bring you along that journey, right? So, in the Middle East, when we have the ability to do so, we have a program where we become the broker between landlords that have unfinished buildings and refugees that need housing. We help the landlord finish the building with some basic amenities, and then we agree a rental free of charge for some time so that entire family can live together in dignity and in privacy.
Food. There's 4,000 of you here, imagine it was 30,000 or 50,000. It has to start with some sort of emergency response. So, in this case, it's generic distributions. Everybody gets the same amount of food based on daily rations. In this case it's maize, beans, salt, and oil. You cook yourselves. But again, this is only temporary. You would like to choose what to get, what you buy and what you eat.
So, this is another example of how we do this. We create these fairs where we bring markets to you in the middle of nowhere. This is again Congo. We agree with vendors a settled list of items, we set the prices, we give you some paper vouchers with a cash equivalent. And for the whole day, you're bartering and you take home your goods. At the end of the day, the vendors come back to us with literally bags of vouchers, give them to us. We have to count them, reconcile, and pay them. It's tedious, I've done it, it's not fun.
Bring in technology, and we start transforming this. First of all, we don't have to count and they get paid the next morning. Everybody's happy. But then we can start looking at the data. And if we do that, we can start improving how we work. We can start understanding what was bought, what was not bought, who bought what. Was this influenced by the characteristic of their family unit or the distance that they had to walk to the market? So again, data can help us improve how we do things.
I wanna finish with education. It's never too early to start putting kids and youth back into education opportunities. This lady, a refugee herself, [Joletta 01:17:43], with her two-year-old son on the back, is teaching kids just across the border from Burundi with basically nothing. She didn't wait for us to arrive, she started.
These girls are going back in Eastern Damascus, in Ghouta. If you've been following the news, you know that's one of the places where there was very fierce fighting among the ruins, or in Masuk, where after ISIS left half the city was in ruins, 60 schools were completely destroyed and another 200 damaged. Yet, in one of our training centers you'll find this, a girls coding club, where girls like [Rama 01:18:21], who's 16, and other young ladies like her are learning basic coding skills because they wanna become the first programmers ever in Masuk, and then use those skills to rebuild their community and to develop a career.
'm gonna leave you on this one. These are three young Somalis in the Dadaab Refugee Camp, which is one of the very famous, longest existing ones on the border with Sudan. Sorry, on the border with Somali. They're connecting to the rest of the world through their mobile devices. And this wasn't taken last week, this is at least a year old or two. So, what I'm trying to say is that this is already happening. It's a tremendous opportunity that we have.
And NRC, with partners like Okta and many of you out there, we need to understand how to better use technology to make sure that we meet the needs of these young people in displacement, and do this with trust and safety.
I hope that was useful for you to understand what we do, and I would like to thank Okta for having us here, and thank you for listening to me today.
Erin B.: Thank you, Pietro, for that incredible window into NRC's work. It's really hard to hear about needs like that and not wanna do something to help, right? So far many of you actually have done something. If you visited our Okta For Good activation on the expo floor, you've actually already helped us raise over $5,000 for NRC right here. And we wanna do even more. Yeah, thank you.
We wanna do more. And that's why we're giving you a way, actually, to donate right here, right now, and Okta For Good is going to match your donations to NRC up to $10,000. So, if you feel inspired, you can get out your phones right now, you can text give to the number on the screen or visit the link. I'm gonna leave this up for a couple minutes so you guys can get this down. Please, if you feel inspired, please help us raise money for this incredible organization and mission.
You can also, if you haven't visited us on the expo floor, you can also head down there and help us raise even more.
And I wanted you to know there's even more opportunity in this room. Your expertise, as technology leaders, is just as powerful as your dollars. Pietro and his team are gonna be with us all afternoon downstairs in the expo hall. I highly encourage you to come over, meet them, talk to them about some of these technology challenges that they're facing, and see if you or your organization might be able to plug in.
Please join me again in thanking Pietro and the NRC team.
Two days ago, I would guess many of you had never heard of NRC, but tomorrow they're gonna return home with thousands of new advocates, new dollars, and hopefully some new ideas to carry their mission forward. This is the power of collective action. And it's not happening here at Oktane, it's happening inside all of your organizations too. NRC may be the focus of our giving efforts today, but in your companies it could be any number of causes that your employees are passionate about.
We recognized a unique opportunity to use what Okta does best, connecting people and technology to help your companies connect to platforms that are enabling this kind of social good at scale. I'm very proud to announce a new program we're launching today, a new ecosystem in the Okta Integration Network that we're calling Apps For Good. Let's take a look.
Benevity Video: Benevity is on a mission to constructively disrupt the way businesses do good. Kiva's mission is to bring financial access to help underserved communities thrive. Volunteer Match's mission is to make it easier for good people and good causes to connect to make a difference. Careervillage.org is a high tech nonprofit that crowd sources career advice for underserved youth at massive scale.
Now, more than ever, employees wanna work for a company that enables them to give back. So, the problem Volunteer Match has observed over the last 20 years is how hard it is for companies that wanna give back to the community to really put their employees' talents and skills to good use at scale. The key for Career Village to be able to make it so easy for people to participate in, they need to be able to have a big impact in a really short period of time.
And the participation in the Okta network just makes it easier for us to get our service into the companies that need it most. Imagine if you could provision changing lives as easily as provisioning an email account? With Okta, companies can roll out Benevity to their employees quickly and securely. Okta is a crucial link in the chain of human connection, enabling global workforces to do good at scale.
We're really excited about becoming a part of Okta's network because it gives us a first class home inside of your company's tech stack. And that means that your employees can get started immediately changing lives. So, please, use the Okta Integration Network to turn on good.
Erin B.: It's an honor to have social change organizations like Kiva, and Benevity, and Career Village recognize the power of Okta's network. And we got there thanks to a huge team effort co-led by my friend and partner Chuck Fontana.
Chuck F.: Good morning, delightful to see you. I'm Chuck Fontana, and I have the extraordinary privilege of leading the Okta Integration Network. Leading the OIN is like being a conductor of one of the greatest symphonies is the SaaS world. Okta engineering are the brass, product management are the violins, business development are the cellos, and every one of you in this audience, every customer, every channel, every technology partner, you're in this orchestra as well because you're the ones creating innovation, new applications, new use cases, new things you need to connect to to define your business and grow it forward.
So, that means you're playing a very critical in the OIN orchestra. And you know what that is, it's more cow bell, baby. That's right. And we need you to hit the hell out of that thing because if every company is a technology company, and they are, all of you are, then every company has to innovate, and create new use cases, new applications, make secure connections for their employees to their supply chain, to their customers. And that means you need to get that app into the OIN so you are part of this orchestra, right? You all right? Okay.
So, when you do that, when you're actually playing with us and helping play that part, we are part of a truly orchestrated effort together, every one of us in this room. And by doing so, we continue to build network effects for all of us ... for Okta, our partners, our customers ... by securely connecting to everything and anything that we need to help your business grow.
And what gets me so excited, really, when I think about yesterday's keynote in particular, and if there's one thing I know for sure, the one thing from yesterday's keynote is this, Todd McKinnon has an infinite integration fever and the only prescription is your cow bell. So, join us and continue to help us innovate. Are you with me? That's right, that's what I'm talking about.
So, what gets me so excited about Apps For Good is that we're really transforming even the OIN. Beyond making secure connections to apps and infrastructure, we're now bringing in nonprofits as a net new ecosystem. And now we're connecting our customers, their most precious asset, they're people, we're connecting their people to the most important social impact tools that are delivering the most critical of services to communities around the world. We're now delivering network effects for good.
Erin B.: That's right. So, if you heard what Jared said in the video, he said imagine if you could provision community service or charitable giving just like you provision an email account.
Chuck F.: Right. And because we have the integration into the Okta, the OIN, there's no sign up required of the employee. She's got the chiclet right there on her dashboard. And because of Okta, the social impact tool knows who she is. So, she can enroll and sign up with just a click of a mouse.
What this means is that employees of your organizations can be instantly connected to giving opportunities that actually reflect your company's culture. And we know that this drives value not just for the nonprofits of the world, but for your organizations too. Employee engagement, pride, even retention, the ultimate win-win.
One of the best things about this, to me, is that tech based giving tools mean that tech leaders can start to further extend their work and become change agents in their organizations. Our challenge to all of you is to become a change agent in yours and many of you already have.
These companies have signed on to deploy one or more of these new integrations to unlock even more social good from their employees.
Chuck F.: Let's give these companies a round of applause. Fantastic, right? You know, the OIN team is so excited to grow this program with the Okta For Good team, and with our community, and with all of you. And so, we ... in particular tomorrow ... or sorry, later today at the Tech For Good lunch, you'll hear from three of our launch partners.
Erin B.: You'll learn not just about the ways that technology is enabling their platforms, but the very personal stories of these leaders and how they created the change they wanted to see in the world through technology. So, we hope you'll join us for that.
The tools ... yeah, thank you. The tools and causes that we talked about this morning, they need champions. Champions like all of you. Together, we believe that this community can be the most powerful giving network in the world. It's an honor for us to get to do this work alongside leaders like all of you, and we wanna say thank you very much.
Chuck F.: Thank you.
As every organization moves to the cloud and the pace of innovation continues to increase, technology leaders want to reduce costs, increase efficiency and support growth — all while not compromising on security. As software continues to eat the world, companies need to digitize or risk fading into insignificance. And yet, every initiative comes with a unique set of challenges: managing the transition from legacy to cloud, implementing a Zero Trust framework, transforming into a digital platform, and hiring enough developers to make it all happen. What are the right expectations? And how can technology be used to drive not just growth, but good? Hear from Okta COO and co-founder Frederic Kerrest and some of the world’s leading brands —AECOM, Albertsons, Ally Financial, Hitachi, McKesson and Norwegian Refugee Council — discuss how they successfully transformed their organizations with technology.