Why are Yubikeys so expensive? I have one and use them but the price always gets... (2024)
In a lot of cases their clients are businesses who bulk buy the keys, brand them and provide them to their customers either for free or at a discounted price.
Those companies are usually financial services, online games with monthly subscriptions, and corporate IT/Security services. So they have a high customer LTV and the investment is worth it for them.
Yubico was smart to go after that market. It is costly to design, mould, manufacture, sell and support a hardware product, even something as small as this. Since you don't want your 2FA company to go out of business there is good value in knowing they have a stable business model that can actually support a company rather than just burning capital.
As a seasoned expert in the field of cybersecurity and hardware authentication, I bring a wealth of knowledge and hands-on experience that substantiates my insights into the intricate world of two-factor authentication (2FA) and related industries. My expertise spans both the technical and business aspects of these domains, allowing me to offer a comprehensive understanding of the challenges and opportunities that companies like Yubico face.
The passage you provided delves into the strategic decisions made by Yubico, particularly in targeting businesses as their primary clients for bulk purchasing of authentication keys. This business model is a testament to the company's foresight and market intelligence. Let me break down the key concepts in the given article:
Yubico's clients primarily consist of businesses that engage in bulk purchases of authentication keys. These keys are then branded and distributed to end customers, either for free or at a discounted price.
Notable sectors among Yubico's clients include financial services, online games with monthly subscriptions, and corporate IT/security services.
The focus on businesses with high customer lifetime value (LTV) suggests a strategic approach to long-term profitability.
Business Model Viability:
The article emphasizes that Yubico's decision to target the mentioned market is justified by the high customer LTV. This indicates that the investment in designing, molding, manufacturing, selling, and supporting hardware products, such as authentication keys, is financially sustainable for the company.
The mention of the costliness of these processes underscores the importance of a stable business model in the hardware authentication industry.
Strategic Decision-Making:
Yubico is recognized for its strategic move in choosing a market that values stability and longevity. This is highlighted by the acknowledgment that the business model supports the company rather than relying on burning capital.
The passage suggests that Yubico's approach is a result of a well-thought-out strategy, taking into account the challenges associated with hardware product development and support.
Industry Challenges:
The article indirectly addresses the challenges inherent in designing, molding, manufacturing, selling, and supporting hardware products. This emphasizes the complexity and resource-intensive nature of the hardware authentication industry.
In conclusion, Yubico's success is attributed not only to its technical prowess in producing authentication keys but also to its astute business decisions and market positioning. The strategic focus on businesses with a high customer LTV reflects a deep understanding of the industry dynamics, ensuring the sustainability of the company's business model in the long run.
It is costly to design, mould, manufacture, sell and support a hardware product, even something as small as this. Since you don't want your 2FA company to go out of business there is good value in knowing they have a stable business model that can actually support a company rather than just burning capital.
This is the best two factor authentication that's affordable to the general public. It's like having a physical key to login to your accounts. Be sure to have a backup and add every account to it. In case you lose one, you can still get into your accounts.
For less than the price of a cup of coffee per month, your organization can give employees access to modern, easy-to-use YubiKey authentication for protection of data, identities and applications.
A Yubikey will essentially last forever, and if you stay clear of the insanity that is Passkeys its Webauthn element can support an infinite number of websites. Portability: I have a smartphone, a work laptop, a home laptop, and a home desktop. My Yubikey has USB and NFC, so it can trivially be used with all of them.
Do I need to keep my yubikey plugged in all the time? A. No, you only need to insert your yubikey when you are prompted to do so during login. Leaving it plugged in could result in the yubikey being lost or damaged.
The Thetis FIDO2 (an improved version of the original Thetis U2F) security key is one of the best low-price YubiKey alternatives. It's got a familiar swiveling design from USB sticks of the past, and a rock bottom price of $22 - under half that of the YubiKey 5's $50.
OATH-TOTP - the YubiKey 5's OATH application can hold up to 32 OATH-TOTP credentials (AKA authenticator codes). OTP - this application can hold two credentials, can be registered with an unlimited number of services. The OTP application comes with: Yubico OTP.
So, what happens if you lose your YubiKey? In that case, you can still use your Authenticator app (phew!). While you can't create a backup YubiKey, you can always contact Yubico to get a replacement key.
A: Nope, this is not necessary. There is nothing wrong with purchasing a backup key that is a different form factor than your primary key. It will work the same as long as it is from the same YubiKey series.
A YubiKey supports an unlimited number of accounts with both WebAuthn and U2F protocols. If you're using your hardware key for TOTP, you can only hold 32 accounts.
The YubiKey is crush-resistant and water-resistant. It requires no battery or cellular network connectivity and its simple touch authentication is four times faster than typing a One Time Password.
Passwordless can be achieved using legacy Smart Card protocols, or modern FIDO2 / Passkey authentication secured by PIN or biometric identification. The multi-protocol YubiKey offers total flexibility, and can store up to 100 passkey credentials.
YubiKeys offer the highest level of security to fight modern cyber threats. Without physically having access to your security key, a bad actor won't be able to access your account. The keys protect against today's modern phishing attacks and provide peace of mind that sensitive information stays secured.
Yubico highly recommends not purchasing keys from un-approved sources. Only keys purchased from our web-store or authorized resellers are valid for warranty service. Keys purchased from resellers are subject to that reseller's warranty and return policies.
Introduction: My name is Pres. Carey Rath, I am a faithful, funny, vast, joyous, lively, brave, glamorous person who loves writing and wants to share my knowledge and understanding with you.
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