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.