As of 19/07/2021
Zoom Video Communications Inc. just approved it’s biggest ever acquisition. The videoconferencing company has acquired the cloud based Five9 for a whooping $14.7 Billion.
Five9 is a cloud Contact Centre software. Zoom with this acquisition is iterating back to its two year old Zoom Phone and Zoom Rooms. Zoom in a blog stated that the deal is expected to add ‘the $24 Billion Contact Centre market‘. Contact Centre in simple terms means the system through which an individual interacts with a firm.
It is interesting to note that just 2 years ago, Zoom itself was valued around $9 Billion. But the advent of the pandemic skyrocketed the company’s fortunes. As businesses, schools needed an interactive medium, Zoom soared.
However with the coming of big players like Microsoft and Alphabet, Zoom had to up the bets too. Also, the company is looking for ways to sustain itself after the pandemic ends. The Contact Centre acquisition looks the ideal fit in this situation.
Zoom stood out from the crowd because of its different approach to online conference calls — they went with a ‘video-first’ strategy. Whilst other platforms used audio as their main selling point, Zoom was the first to focus on the visual side of things. Before Zoom, group video calls were very expensive. Also, its app focused on large MNC’s such as the University of Sydney and Wells Fargo. These were some major reasons which helped Zoom in its enormous growth.