About
Zscaler builds a cloud-native Zero Trust Exchange platform that securely connects enterprise users, devices, and applications while protecting against cyberattacks and data loss. It sells primarily to large global businesses, differentiating through a 100% cloud-based architecture, extensive security-cloud scale, and inline protection delivered across more than 160 global locations.
Market
Zscaler competes in the cloud-native cybersecurity market spanning Security Service Edge, SASE, zero-trust access, cloud workload protection, and AI security. It differentiates through a proxy-based architecture, cloud-scale TLS inspection, least-privilege access, concealed workloads, and a unified platform intended to reduce reliance on traditional firewalls and VPNs.
Zscaler primarily serves large enterprises—especially Global 2000 organizations and companies with 5,000+ employees—as well as government agencies. Its strongest verticals are financial services, healthcare, technology, and manufacturing, with CIOs, CISOs, IT directors, and federal security buyers as key decision-makers.
At a Glance
Problem
Zscaler addresses the security and operating problems created by cloud-first computing, hybrid work, and distributed users, devices, applications, and data. Legacy VPNs and network perimeters expose organizations to ransomware and third-party backdoor vulnerabilities while forcing IT to maintain cumbersome infrastructure. The pain is therefore both economic and operational: security teams face breach risk, fragmented controls, and the cost and friction of modernizing legacy networks. Zscaler’s 2025 research found that 81% of organizations planned to replace VPNs with zero trust, while 92% were concerned about ransomware attacks linked to VPN vulnerabilities.
The main use case is replacing VPNs and legacy firewalls with zero-trust access for remote employees, contractors, branches, and other distributed users. Instead of putting a user onto a broad corporate network, the organization can connect an authorized user or device directly to the specific application needed, reducing attack surface while enabling secure workplace and infrastructure modernization.
Product / Service
Zscaler sells a cloud-native, software-as-a-service security platform centered on the Zero Trust Exchange. Its security cloud sits between users, devices, and applications, applying policy-based access and security controls without requiring the enterprise to route activity through a conventional private network. This delivery model replaces or reduces dependence on customer-managed security appliances and legacy VPN infrastructure.
The platform securely connects users, devices, and applications wherever they are, while protecting against cyberattacks and data loss. Its benefit is a simpler way to provide fast, secure access to cloud and private resources, helping enterprises become more agile and resilient as they modernize their networks and adopt cloud services.
Market
Zscaler competes in enterprise cloud cybersecurity, particularly the Security Service Edge market and the broader zero-trust network-access category. It is positioned against vendors such as Netskope, Palo Alto Networks, Cisco, Microsoft, Fortinet, Forcepoint, Citrix, and Cloudflare. Gartner named Zscaler a Leader in its Security Service Edge Magic Quadrant for the fourth consecutive year, indicating established category recognition rather than a pre-revenue market entry.
The company has substantial commercial traction. In its fiscal 2026 third-quarter results, Zscaler reported $850.5 million in quarterly revenue, 25% year-over-year growth, and $3.525 billion in annual recurring revenue. Its company materials also report more than 9,400 customers, including 40% of the Forbes Global 2000, and more than 500 billion daily transactions secured, confirming that the business is a scaled subscription security provider rather than a pre-revenue startup.
Founders & Leadership
Funding History
Lightspeed Venture Partners
TPG
Not publicly disclosed
Recent News
Zscaler and Schwarz Digits announced a strategic partnership to deliver a sovereign cloud security platform for Europe.
Zscaler announced that it had joined the Hiroshima AI Process Partners Community, expanding its engagement in collaborative AI governance and security initiatives.
Zscaler introduced a browser-focused expansion of its Zero Trust strategy for enterprise security.
Zscaler announced a certification enabling it to secure global customers connecting in China.
Aston Martin Aramco Formula One Team announced a new multi-year partnership with Zscaler focused on combining speed, security, and Zero Trust.
Zscaler published research arguing that AI is changing cybercrime economics from high-volume activity toward more precise and potentially damaging attacks.
Zscaler announced an updated Zero Trust SASE direction designed for the AI era.
Zscaler expanded its AI-Guardian ecosystem with AI and cloud leaders to support secure signal sharing across enterprise AI interactions.
Zscaler unveiled new product innovations aimed at securing enterprise use of agentic AI.
Zscaler announced its fiscal third-quarter 2026 results and characterized them as strong.
Active Roles
363Business Model
Zscaler operates a 100% cloud-based SaaS subscription business. It monetizes platform bundles, subscription plans, and additional security modules such as private access, data security, sandboxing, and firewall capabilities.
Products
Customers
Tech Stack
Similar Companies
Competitors
Key Investors
Lightspeed Venture Partners, TPG, CapitalG, Employee Stock Option Fund