Analyst(s): Krista Case
Publication Date: August 28, 2025
Okta’s move to acquire Axiom Security signals an expansion into SaaS security posture management and real-time identity threat detection. The deal positions Okta to deliver more comprehensive Zero Trust outcomes, bridging authentication, SaaS visibility, and identity-based risk response, in a market where cloud sprawl and SaaS risks are top of mind for CISOs. This acquisition has implications across the Identity and Access Management (IAM), Security Service Edge (SSE), and SaaS security landscapes.
What is Covered in this Article:
- The strategic rationale for Okta’s acquisition of Axiom Security and its impact on Okta’s product portfolio.
- Competitive context: How this shapes Okta’s positioning against Microsoft, Cisco, Palo Alto Networks, and other SaaS/IAM leaders.
- Market drivers: The need for unified identity protection and SaaS visibility as enterprise cloud adoption matures.
- Analyst perspective on the integration challenges, customer upside, and what this move signals for the broader IAM market.
The News: On August 26, 2024, Okta announced its intent to acquire Axiom Security, an Israel-based startup specializing in cloud identity security, SaaS posture management, and real-time session monitoring. The acquisition aims to complement Okta’s core IAM platform by adding Axiom’s advanced SaaS visibility, risk detection, and identity threat response capabilities. The deal is expected to close in Q3 2024, subject to customary regulatory approvals.
Okta – Axiom Signals the Criticality of Comprehensive Identity Security
Analyst Take: Okta’s planned acquisition of Axiom Security reflects a critical shift in the identity market: siloed approaches to identity security are no longer sufficient as today’s enterprises face a perfect storm of challenges:
- SaaS sprawl, with hundreds of applications in use, many unmanaged or poorly governed.
- Non-human identities (NHIs) including bots, AI agents, and service accounts, which in many instances require privileged access and can be exploited by adversaries.
- Rising identity-based attacks, such as session hijacking and identity-based lateral movement within the cloud, where standing privileges, misconfigurations, or stolen sessions are the weak link.
In this environment, identity security must evolve into a comprehensive fabric that spans authentication, governance, SaaS security, and privileged access management (PAM). PAM is particularly vital to reducing identity risk, as it eliminates always-on privileges and enables just-in-time access instead, limiting the blast radius of compromised accounts.
Axiom strengthens Okta’s hand here. In particular, Axiom brings:
- SaaS application visibility and posture management for ongoing risk analysis across hundreds of SaaS apps, far beyond single sign-on visibility.
- Real-time monitoring and control to mitigate threats post-authentication, notably by detecting anomalous activity after authentication, complementing Okta’s strengths in prevention and policy enforcement.
- Foundational PAM enablers that help enterprises move from standing access to just-in-time privileged access.
This is a natural extension of Okta’s strategy to be not just the authentication “front door,” but the foundation for comprehensive, identity-driven Zero Trust. Okta will be positioned to address SaaS shadow IT, lateral movement, and insider risk more holistically, which is critical for regulated sectors, large distributed organizations, and those with heavy SaaS and multi-hybrid cloud footprints.
Okta is not alone in pursuing this vision. For example, SailPoint has been expanding its portfolio from core IGA into adjacent areas like SaaS security, reflecting the same recognition that identity security must broaden. At the same time, Palo Alto Networks’ planned $25 billion acquisition of CyberArk and Microsoft’s concerted investments in identity security reflect the criticality of identity to the modern security stack, for example, requiring intersection points with endpoint and network security as well as broader threat intelligence, detection, and response.
Execution via technology integration will be pivotal to the success of the planned acquisition. Bringing Axiom’s technology into Okta’s platform would turbocharge Okta’s SaaS security features, but “platformization” is easier pitched than delivered. Customers are wary of bolt-ons, and CISOs will want tight, native experiences, not separate dashboards or laggy APIs. Okta’s recent history (post-Auth0) shows it can absorb and scale new technologies, but execution will be the test.
Finally, the broader IAM market will take notice. This is not just about Okta plugging a product gap; it is a marker that the future of identity is continuous, contextual, and cloud-centric. Expect accelerated moves from others to consolidate SaaS security, threat detection, and IAM into unified stacks, and for platform competition to intensify with adjacent markets like SSE and XDR.
What to Watch:
- Integration depth: Will Axiom’s PAM and SaaS monitoring become a seamless extension of Okta’s console and workflows?
- Customer adoption: Will Okta’s enhanced portfolio be enough to consolidate more identity security spending, or will buyers continue to prefer best-of-breed solutions?
- Competitive acceleration: Expect rivals to fast-track their own identity fabric strategies, particularly around PAM and SaaS risk.
- Evolving market definition: Identity security is converging with SSE, XDR, and data security; watch for blurred lines and expanded buyer personas.
See Okta’s press release for additional information.
Disclosure: Futurum is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum as a whole.
Other insights from Futurum:
Can Identity Security Vendors Keep Pace with Platformization and AI-Driven Threats?
Palo Alto Networks Makes Bold $25B Identity Play with CyberArk Deal
SailPoint Bolsters SaaS Security with Savvy Acquisition
Author Information
Krista Case brings over 15 years of experience providing research and advisory services and creating thought leadership content. Her vantage point spans technology and vendor portfolio developments; customer buying behavior trends; and vendor ecosystems, go-to-market positioning, and business models. Her work has appeared in major publications including eWeek, TechTarget and The Register.
