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Zscaler (ZS) Secures OMES' IT Operations, Enhances Productivity

Zscaler, Inc. ZS recently partnered with the State of Oklahoma Office of Management and Enterprise Services (OMES) to provide offerings from its Zscaler Zero Trust Exchange platform, including the Zscaler Internet Access (ZIA) and Zscaler Private Access (ZPA) products.

The company’s products are helping to enhance the efficiency of OMES’ IT operations, rapidly scale remote access for employees working from home and secure government data and applications.

Rationale Behind Implementing Zscaler’s Solutions

Markedly, the State of Oklahoma had to undertake the task of quickly supporting more than 30,000 teleworking employees during the COVID-19 pandemic. Notably, Oklahoma Human Services had to meet requests for benefits, which shot up by 50% month-over-month.

However, the State agencies’ legacy VPN solutions were unable to meet the surge in demand for volumes and scalability at such short notice. Their legacy remote access solutions led to outages due to jammed networks. This resulted in numerous calls to customer service and VPN tickets every day. Additionally, increased cybersecurity risk was a growing concern.

It was only after implementing Zscaler’s ZPA and ZIA that OMES could successfully contain its difficulties. Zscaler’s solutions strengthened security, enforced policy and improved user experience.

The OMES team could fully implement ZPA within two days, rolling it out to more than 90 State agencies to date and successfully providing 10,000 users with secure direct access within a few days of implementation. Apart from these, Oklahoma Human Services could reduce the number of VPN complaints significantly.

Moreover, the Department of Corrections could reduce the use of expensive connected services, which sped up VPN efficiency up to six times. This resulted in reduced costs, higher productivity and improved user experience.

Matt Singleton, CISO, Office of Management and Enterprise Services, the State of Oklahoma, said, “We’ve completely changed the cybersecurity posture of the State of Oklahoma in the last 18 months – Zscaler played a big part in that.”


Zscaler is benefiting from the rising demand for security and networking products amid the COVID-19 crisis. In an effort to contain the spread of the virus, a huge global workforce is working remotely. But more people logging into employers' networks means a greater need for security. This trend is positively impacting demand for Zscaler’s products. Moreover, the company’s Edge cloud for policy enforcement, multi-tenancy, a proxy for SSL or TLS inspection and zero-trust network access are well poised for further adoption amid the thriving remote work culture.

Notably, in its second-quarter fiscal 2021, Zscaler continued to win customers and its net dollar retention rate was outstanding at 127% compared with 122% recorded in the previous quarter and 116% in the year-ago quarter.

Zacks Rank & Stocks to Consider

Zscaler currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the broader technology sector are Ubiquiti Inc. UI, Vishay Intertechnology VSH and Etsy, Inc. ETSY, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Ubiquiti, Vishay Intertechnology and Etsy is currently pegged at 32.94%, 20.26% and 25.25%, respectively.

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