Strata raises $26M to unify IAM across the cloud 

Managing user identities is difficult on-premises, let alone in complex multicloud environments. In multi and hybrid cloud environments, every app and service has a distinct and siloed authentication process, which makes it difficult for security teams to deploy consistent data access controls across the organization. 

That’s why multicloud identity orchestration provider Strata, which today raised $26 million as part of a series B funding round led by Telstra Ventures, offers an identity orchestration platform called Maverics, which can integrate with third-party identity access management (IAM) services like Okta and Ping Identity to create a single unified identity flow across multiple apps. 

Since Strata was founded in 2019, its Maverics identity orchestration platform has generated significant interest due to its ability to offer a no-code-driven, multicloud- and multi-vendor-friendly authentication process. 

Having raised $42 million in total funding to date, Strata’s growth signifies that more and more organizations are in need of simplifying identity management to apply across legacy, on-premise, and cloud infrastructure.  

The need to unify IAM 

Digital identities are one of the most vulnerable elements of the enterprise attack surface. In fact, research shows that  67% of organizations suffered from identity-related breaches in 2021.

However, many organizations are stuck relying on a patchwork of siloed identity management solutions to control access to critical data assets. This is made worse due to the widespread adoption of multicloud deployments. 

“Among large enterprises, there’s been a steady move to adopt multiple clouds. These multiple clouds create silos of identity and security across old and new technology platforms,” said Eric Olden, CEO of Strata. 

The adoption of multiple clouds has meant that organizations are reliant on multiple identity systems, using tools provided by vendors like Okta to secure SaaS apps and then Microsoft Azure AD to secure the cloud environment. It’s a setup that relies on more than one IDP and increases complexity for security teams.  

“These enterprises now need a way to make these multiple identity systems coexist because consolidation isn’t an option. This is driving the need to think about managing identity security using an integration or abstraction layer — known as an identity fabric (or what Gartner also calls a cyber security mesh),” Olden said. 

With Maverics, Strata helps to reduce the complexity around identity management by offering a single solution, which integrates with IAM tools like Okta, Azure AD, AWS Cognito, Ping and Auth-0, so that security teams can create a multi-vendor user authentication journey. 

The idea is to offer a mechanism for applying consistent access controls throughout the environment, a mechanism that integrates the capabilities of multiple vendors.

A look at the IAM market 

Strata’s solution is part of the IAM market, which researchers predict will reach $36.96 billion by 2030 as more organizations look to reduce the chance of identity-related breaches. 

While Olden claims that Strata has no direct competitors, the provider is indirectly competing against existing third-party authentication providers.

One such vendor is Okta, which offers universal login and single sign-on capabilities to authenticate users via the Auth0 identity and management platform. Okta currently expects to generate $1.836 billion to $1.838 billion in revenue in 2023.  

Other providers competing in the space include Microsoft Azure AD and AWS Cognito, offering IAM options for users in the Azure and AWS cloud ecosystems to control user access to web and mobile apps with single-sign-on and multi-factor authentication capabilities. 

What differentiates Strata is its potential to unify these disparate IAM solutions as part of a cohesive identity workflow. 

“Only Strata provides a way to manage any and all of these different vendors,” Olden said. “Strata works with all identity vendors and can run anywhere — both on-premises and in the cloud; other approaches are limited to a single cloud (like Azure AD or AWS Cognito) or limited to a single identity provider (like Okta or Ping).”