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The Rising Tide of Machine Identities: My Thoughts on the Shifting Cyber Landscape

Industry Trends

Last month, privileged access management (PAM) giant CyberArk signed an agreement to acquire machine identity management company Venafi for $1.54 billion. 

M&A activity in cyber remains strong as consolidation driven by larger, legacy players shows little to no signs of slowing down. I see this specific deal as a net-positive play for the market, especially in terms of the valuation multiples that companies in the Machine Identity space are able to command. Going a step further on just how hot the Machine ID market is, years ago, non-human identities were just starting to make their mark in the cyber world. Today, machine identities outnumber human identities 50x+. It’s not a coincidence that the urgency around managing non-human identities correlates with our company’s growth. Keyfactor surpassed $100M ARR in under five years and hit a $1.3B valuation following a round raised from Sixth Street Growth in October 2023. 

As the cyber landscape continues to shift, Keyfactor remains steadfast in our unwavering commitment to our customers’ success. We find ourselves in a constant state of innovation – investing back into our technology, prioritizing R&D, and hiring the best and brightest in the industry. The time spent with our customers fuels the next iteration of advancement – we witness the increasing demand for PKI and post-quantum solutions in real time. We help educate our customers (which include some of the world’s most important organizations) that PKI isn’t just an application or software – but rather, PKI is critical infrastructure. As for post-quantum, we help customers prepare for the transition to post-quantum cryptography throughout our entire solution stack. 

Keyfactor solutions offer the flexibility to deploy anywhere: in our cloud, in your cloud, on-premise, or in a hybrid model. We understand that a one-size-fits-all model no longer works, which is why our modern architecture lends itself to fit-for-purpose solutions.

We embrace these market shakeups, and we control our own fate with 100% of our focus on our driving innovation in our solution stack, for the sake of our customers. Keyfactor has lots of incredible work to showcase before the end of the year. Stay tuned for more.