Identity – Magic Happens

The simple business model for all businesses in the identity space:


The identity business resides inside the cloud labeled “magic happens.” Identity business fulfill demand that comes from web sites. They only indirectly serve users. The thrives if it can generate sufficient magic to satisfy the web site owner. He, of course won’t be satisfied if the user isn’t reasonably happy. Of course if the business can’t get enough users nobody will be happy.

Sufficient magic is actually the sum of all magic over the set of all users served. So a little magic per user will be enough if the number of users is huge.

That drawing is a bit misleading. Treat the idea of a customized experience very flexibly. A web site that denies a credit charge based on the user model magic makes is customizing the experience for the thief’s. Other users might not even notice that kind of customizing.

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