Market Overview: Passwordless Authentication

So, yeah, the title is market Overview, so I'm not gonna bore you with or passwordless. I think we, we've been here for a while in this room and we know about the main capabilities, so I'm not gonna go too much into detail. Yep.

So, like I said, I'm gonna be skipping a bit fast on the first section, and then I'm gonna talk about the evaluation criteria of how we do reports at Coppinger Coal. What are the things that we assess, the categories that we look at, and the process of the research. And then I'm gonna introduce the results. So this lc was published in October, 2022, and we're gonna plan to do an update version this year in October. So I encourage you to participate if, if you want your, your company to appear in the report.

So yeah, Wago, passwordless, we, we hear it all the time. It increases both security inconvenience. It's a win-win approach, right?

We know, we know this. So use cases, like I said in the session earlier today, there are multiple use cases, mainly consumer use cases, workforce use cases, but also we see partners and citizens as well. Each use case requires perhaps different needs. For example, the enterprise might prioritize security over user experience, while the consumer side might focus more on the user experience than security. But of course, having both at the same time is essential.

Or for example, if we look at the healthcare industry, they might prefer biometrics, but depends what kind of biometrics, fingerprints, or facial biometrics. Usually people in the healthcare industry, they hand, they have their hands full. So for them it might be better to have facial recognition technology.

So again, there are different flavors of passwordless and it always depends on what the organization wants, and it always depends on the industry that you're looking at, right? Main capabilities. I'm gonna skip a, I'm gonna skip this slide just quickly. You can see that I, I talked about it earlier today and I'm sure most of you here know this already.

Yeah, maybe we can talk about the obstacles that we encounter these days. So many organizations, they don't know how to modernize, right?

Also, we see business versus IT alignment. Some people in the board may not, they may not be very tech savvy, so maybe they don't really know the, the requirements that their organization needs. So there's always that sort of conflict between the IT people and the business people, let's say. Then there's also of course, a legacy app integration. Many organizations are still struggling with this. They're relying on legacy systems and they need to modernize in order to increase both security and convenience, right? Then there's also the so-called all school mentality.

And every time I talk to vendors, they always tell me that when they talk to their clients, some of them they like, it's not that they like passwords, but they struggle with change. And for them, it might be difficult to just embrace passwordless without really understanding the benefits, right?

Of course, deployment costs, selecting the right product, privacy regulations, you, you know, if you're based in the US and you wanna enter the European market, everyone is gonna ask you about gdpr, right? So these are some of the constraints that we see in the market, and these are some observations that are relevant based on our current research. Number one, passwords will not quickly disappear. It's gonna take some time, right? Some of the speakers in the previous session, they talked about it, but we see that credential base attacks and fraud cases are on the rise.

So that needs to be addressed, right? The development of 5 0 2 and Webo, that's driving the passwordless market, as well as the memorandum published by the Biden administration last year that talks about fishing resistant MFA and the growth of e-commerce and the shift remote and hybrid work that's also gonna continue contributing to further adoption. And our Analyst recently predicted, they did a, a study, I mean, I wasn't the one doing it, but they concluded that the compound annual growth rate will go up to 31.1% leading to the pais market to reach 6.6 billion US dollars by 2025.

So as we can see, the pais market is dynamic, is competitive, is gaining momentum. And based on my research, I had I think 32 vendors during this leadership compass report. And they are all very passionate about their solution.

They, they love what they're doing, they're very competitive and happy. So it's, it's an exciting place to be, I believe. So the pros of pass list, like I said, some of the speakers before, they went into more detail about the benefits of going passwordless, but here are some, some options that you can, you can see and, and know why Passwordless can bring benefits to your organization, right? So the evaluation criteria.

So what, how do we do what we do at Coppinger Coal? What's the secret, right? So there's some technical evaluation criteria that we look at forever report based on the product that we are looking at. We have different categories, but for password list, these are the ones that we're looking at. And perhaps in the updated version of the report, we will have maybe different ones, right?

It's, it's based on what we see in the market, but these are the ones that we used in the previous report. So account recovery, architecture and deployment, authentic care support, APIs, device trust, IM support and scalability. So what's the process? How do we do what we do? There are different dimensions that we take a look at when we evaluate one particular product. So first we have, well, I'll talk about it in the next slide, but these categories are the ones that we are paying attention when we talk to vendors, right?

Security, functionality, interoperability, integration, usability, innovation, market ecosystem and financial strength. And in the next slides you will see how, how we apply these, right? In each report we have four categories. So we have a chart that I will show later today on product leadership. And the product leadership focuses on the evaluation criteria that I just showed earlier. The account recovery, the deployment, the device trust.

When it comes to the market leadership, well, it depends on the financial strength, it depends on the, the presence, geographical presence of the vendor, and then innovation leadership. We take a look at maybe some small vendors, but they have very unique capabilities, very nove capabilities that we also consider in the report. And then we have the overall leadership that basically integrates the product market and innovation into one chart where we determine who are the overall leaders of the market. So this is what what we do.

First of course we do research on the topic on the market, and then we send a questionnaire. I'm sure some of you're familiar with the questionnaires that we send. They have usually, I don't know, 800, 900 questions. I'm sure they have a lot of fun doing that. But it's very useful for us because we get very into detail on the technical aspects that we are assessing and rating. So it's very beneficial for us. And then we have a briefing with each vendor where they tell us about their product, about their vision, and where they can also show us a demo so we can see how they do it.

And we can always ask questions based on the questionnaire or on the briefing. And then based on the information that we get from each vendor, then we analyze and write a draft. So each vendor will have a chapter in the report where we look at the overall product, and then we list some strengths and challenges of each particular product. And then we have a fact check stage where we send the content back to the vendors.

And depending if they have any questions or there's something that we missed, we can always have a second call where we can have another demo or they can ask us any questions and then we publish it. So the leadership compass usually takes five to six months. It depends. For passwordless, like I said, we had like more than 30 vendors participating. So it took a while. It took like six months, I believe. So the results, we rated 20, well, 32 vendors, 24 were rated and they appear on the charts and eight of them appear in the vendor vendors to watch section. That is at the end.

And we just have a small paragraph describing why it's worth watching them, right? But the main vendors that we rate are the ones here on this big box from established vendors to small but innovative companies to ID management organization. So it's a mix of, of different kind of vendors, right? And this is the overall leadership in the passwordless lc. Like I say, like I said before, we see some established vendors. We see some highly innovative, but small companies that are in on, in the right direction, of course, right?

And we also see some challengers that are maybe lacking some capabilities that we assessed, or maybe they just focus on certain geographical regions or certain markets. For example, one of them, they, they mainly focus on the small and medium enterprise sector in North America. So of course it's, it's a highly, it's a good place to be, right? But may maybe when they compete with some of these big companies, it affects their rating, their overall rating. Then we have product leaders. And like I said earlier, this is based on the categories that we assess and rate here on the left side.

Two minutes left, Alejandro. Okay, I'm almost done. If we jump to the next slide, we'll see the innovation leaders. And here we look at specific capabilities that they might be, they might stand out compared to other vendors. For example, I was, in November, I was at the CSLs conference that we also organized here in Berlin. And I was in a CISO council meeting with a bunch of CISOs and one of them asked me, why should I look at other vendors if I have Microsoft in place, right?

And my answer was that there are some other companies that are more innovative and they offer other capabilities that maybe you might not find in one other, in, in any of these established vendors, right? So there are different flavors, there are many companies and the market is growing and it's dynamic and they're driving innovation.

So I, after the lc, after it was polished, I had briefings with other small vendors and I saw very innovative features that I didn't see in any of the previous vendors that I talked to during the lc. So what I see is that the market is growing and I see more innovation that is driving the passwordless. And we have also the market leadership. And like I said, we see mainly established vendors that have the geographical presence, right? And they have the, the, the name, let's say. But they also of course offer good capabilities because they also score pretty well in the product category.

And then in each chapter for each vendor we have spider graph that measures the, the things that we look at. And the spider graph shows how well they're doing for each category.

So it's, it's a pretty cool report because you can see the overall description of the product, but you can also see how this score, and I believe that was my last slide. Yes, thank you. I just wanna have one reminder for you. You were the first one working on this leadership compass, right? Yes. And are you going to update it next year? Yes. Yes. I said that we're gonna update it in October of this year. So I expect way more vendors to participate.

And maybe just quickly, something that I see in the market that maybe is lacking a bit is that I, I come from Latin America, so maybe I'm a bit biased, but I don't see many vendors going into the Latin American market or the Middle East and African market. Like when we talk about Passwordless, not all, but I see that most vendors tend to focus on Europe and North America. So if we wanna get rid of passwords and we want to promote this passwordless adoption, it's gonna be, it's gonna be challenging of course, but we need to do it globally, right?

And that's of course gonna gonna be an interesting development. So there are no more questions. Thank you for your time. Thank you so much and enjoy your lunch break.