Zscaler's Zenith Live Highlights: Expanding Horizons in Security and Strategic Partnerships

Earlier this week, the Zscaler’s (NASDAQ:ZS) Zenith Live Conference in Las Vegas was held. The event was majorly positive as the company discussed multiple core strategic growth opportunities with ZS securing the firm’s leadership in the Zero Trust security market. In addition, several growth initiatives were pointed out by management within the perpetually evolving ZS platform including the progression of product optimization.

Zscaler Expands Portfolio and Initiatives

During the investor event, the company pointed to the huge addressable market with its SAM reaching $96 billion ($72 billion in 2021) as it declared several new product launches indicating further growth of its offerings. The company also shared progress on its new go-to-market approach, which consists of moving from account selling and additional GSI partnerships that will also help to add cross-sell/up-sell opportunities under the new leadership of CRO Mike Rich.

The company reveals several major strategic growth initiatives, such as the Data Protection Solution which was launched less than two years ago. The product portfolio now consists of DSPM, CASB, DLP, and more, with many cross-sell/up-sell opportunities looking ahead. This has been a rapidly growing segment of data security as AI is still in development and is well suited for consolidation to ZS.

Zscaler Shifts Sales Strategy Under New Leadership

Mike Rich, CRO & President of Global Sales transitioned the ZS salesforce from a transactional model (sell and get out) to a more account-centric selling (focusing on the entire lifecycle of the customer). ZS has also put in place a verticalization strategy where healthcare and federal are the two main focused verticals in FY25. ZS is focusing more on the ability to sell to the CIO and reorganizing its sales force through new hires.

ZS Expanded $96B SAM with New Strategic Areas

ZS identifies its total SAM as $96B compared to $72B in 2021. The increase is driven by three incremental areas: 1) Data protection pillar addition ($10B in SAM), 2) Zero Trust for branch/factory incl IoT/OT ($12B in SAM), and 3) Risk360 and BI ($2B in SAM).

Zscaler Partnered with Google and Nvidia

ZS continued to expand its partnership with GOOG, further building a presence in Chrome, Google Cloud Platform, Google Workspace, and Google Security Operations for enterprises with millions of users and helping block data leakage belonging to the enterprise from Gmail or Drive applications.

ZS also declared the partnership with Nvidia to fast forward on the use of AI copilot. ZS wants to enhance its capability of analyzing data from its Zero Deliver Trust Exchange through this partnership while introducing predictive gen-AI solutions to the market.

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