Zscaler is a cloud security company that built a zero-trust platform to secure users, workloads, IoT devices, and business-to-business connections.
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Zscaler is a cloud security company that built a zero-trust platform to secure users, workloads, IoT devices, and business-to-business connections. Jay Chaudhry founded it in 2008 in San Jose, California. Zscaler pioneered the idea of delivering security from the cloud rather than through on-premises hardware, fundamentally changing how enterprise network security works.
The core platform, the Zero Trust Exchange, processes over 400 billion transactions per day across 150+ data centers worldwide. Instead of routing traffic through corporate firewalls and VPNs, Zscaler acts as an inline cloud proxy between users and applications. It inspects all traffic in real time to enforce security policies. This eliminates the need for traditional VPN appliances, web gateways, and firewall stacks.
Zscaler Internet Access secures internet-bound traffic regardless of location. It provides secure web gateway, cloud firewall, DNS security, cloud access security broker, and data loss prevention. Zscaler Private Access replaces legacy VPNs by connecting users directly to specific applications without exposing the underlying network. Zscaler Digital Experience monitors end-to-end user experience quality across SaaS apps, networks, and devices.
Zscaler for Workloads secures cloud-to-cloud communications. Zscaler Deception deploys decoys to catch threats that evade other controls. Data protection includes cloud DLP, exact data matching, and AI-powered classification.
The target market is mid-to-large enterprises and government organizations going through digital transformation and cloud migration. Large deal activity has picked up as organizations consolidate multiple security tools onto the Zscaler platform.
Annual revenue is roughly $2.3 billion with gross margins around 78%. Revenue is subscription-based with high visibility. Net revenue retention exceeds 120%. Operating margins are improving as the company reaches scale.
AI features leverage the massive dataset of security signals. Capabilities include phishing detection, browser isolation, risk scoring, and policy recommendations. Acquisitions of Avalor for risk management and Airgap Networks for network segmentation have expanded the security intelligence toolkit.
With about 7,000 employees and a position as the dominant cloud-delivered security platform, Zscaler is the architectural backbone for enterprise zero-trust transformation.
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