Recently, API integration service provider Azuqua was acquired by identity provider Okta. This signals the next phase of API integration’s recent rise: consolidation and commodification.
The first phase of API integration’s maturity was the big splash and subsequent gold rush of Salesforce’s acquisition of Mulesoft. This caused many companies to froth as to whether APIs and API Integration had finally become a first-class architectural component worthy of attention and not just a mix of confusion between rising above SOA’s ashes and the disruption (distraction) of microservices.
Analysts, though, are still unsure what to do with both SOA, PaaS services, and API Management / Integration, in general, lumping all of these backend IT functions (whether marketed to front-of-the-house buyers) into one, with terms like “iPaaS.”
Okta, a top-tier identity provider, recognizes that identity needs to be more than just a background security feature, no matter how robust. By acquiring Azuqua, adding in their workflows (or “Flos” as they call them), services around identity and authentication can be orchestrated. This will bring what Okta’s succesfully been able to do - making logging in seamless - into something more dynamic. Logins can be coupled with other workflows, like usage tracking or HR workflows.
For $54M, Okta got a solid exit from with a DFJ funded $16M company. That’s a decent multiple, not exactly 5x, which also may indicate weakness somewhere - product, customer-base, or industry segment. A successful exit, and not a fizzle, is always a great thing for the API Integration and Management segment.
Watch for more of these acquisitions to happen.
Okta to acquire workflow automation startup Azuqua for $52.5M, Techcrunch