Talking about Tencent’s go-to-market strategy, Ecosystm Principal Advisor, Niloy Mukherjee says, “The current leader in the video-conferencing space, Zoom is not available in China so that market alone can sustain an offering like Tencent Meeting. With the popularity of WeChat, Tencent has a huge opportunity to combine conferencing on the desktop and the mobile and I see that as an advantage for Tencent when compared to other players in the market.”
In another savvy move, as enterprises grapple with remote employees and video-conferencing solution grow in importance, Tencent rolled out its video-conferencing solution for the global market. VooV Meeting, the global version of the domestic app Tencent Meeting, was launched in over 100 countries including the larger Asia Pacific markets such as Malaysia, Hong Kong, Singapore and Japan.
Mukherjee says, “At this particular moment in time, the COVID-19 crisis has suddenly brought video-conferencing front and centre. While people are now resorting to it out of compulsion, they are likely to discover that this is a great way to work. As bandwidths and connectivity improve across countries, video-conferencing emerges as a really viable solution. Organisations will soon realise that this technology can help save tremendous amounts of travel and facility rental costs. So, usage is likely to grow exponentially – and it is not a bad time at all for Tencent to enter this market.”
The Video-Conferencing Market is Heating up
The video-conferencing market continues to grow and providers such as Zoom, Microsoft, Google, and Slack have made many of their offerings free. In the current milieu industries such as healthcare, education and professional services are using unprecedented video collaboration tools, both internally and for customer interactions.
Zoom is gaining global popularity with stock prices rising 28% in the last month in an otherwise under-performing global market. Zoom continues to evolve user-friendly features such as the virtual background, forcing other conferencing providers such as Microsoft to emulate them. Microsoft Teams has also seen a steep rise in popularity, with the company reporting over 50% rise in chat volume in the last month.
Ecosystm Principal Advisor, Audrey William says, “Expanding the capabilities beyond video will be critical for a larger market share. Zoom is now expanding its offering to include calling capabilities with Zoom phone. Beyond video, collaboration platforms are growing in importance and Microsoft Teams, as an example, has made the platform feature-rich across voice, video and collaboration capabilities. Users will want features that will make chat, video, voice and collaboration sessions rich and intuitive. If the experience is not good, they will find another platform to use. It will all come down to user experience!”
Tencent is by no means the only tech organisation from China that is eyeing the global market. Recently, Alibaba launched a free international collaboration platform based on their productivity app Dingtalk for medical professionals to share information and advice on prevention and treatment of COVID-19. In a boost to Tencent however, the United Nations (UN) announced that they will be using VooV Meeting to host their online conversations, especially for their initiatives to mark their 75th anniversary – UN75. Not only will the UN use Tencent’s video-conferencing capabilities, they will also leverage other Tencent offerings such as WeChat Work, and Tencent AI SI.
William thinks that the market might be crowded and Tencent will face some challenges. “Tencent’s challenge is that it is entering an established market. To make a mark, it will have to continue to innovate on features, focus on platform security and ensure that the experience is seamless. Tencent announced in January that the solution can support 300 attendees simultaneously. To sustain this and make a bigger push internationally, it will need to work with local partners to help take this product to market.”
“With all the options around, people will not use VooV Meeting just because it is free – they will if they find the features to be unique and the experience brilliant.”
Mukherjee adds, “Tencent is one of the most admired companies in China – it is a top pick for most graduates as their preferred employer and is seen as a better company to work for than other big players in China. This is a reflection of its strong corporate culture and continuing success. Tencent has, so far, had a good track record of competing with the likes of Alibaba and I believe that they will move quickly to muscle in and take a leadership space in the global video-conferencing market.”