Last week Zoom announced a USD 100 million Zoom Apps Fund to promote the development of Zoom’s ecosystem of Zoom applications, integrations, video, developer tools, and hardware.
As part of Zoom Apps Fund, the company will invest in a portfolio of companies that are promoting and innovating on Zoom’s video conferencing platform. The portfolio companies will receive initial investments between USD 250,000 and USD 2.5 million to build solutions. To support the practice, Zoom is providing its tools and expertise to various start-ups, entrepreneurs, and industry players to build applications and integrate Zoom’s functionality and native interface in their products.
In March, Zoom introduced an SDK designed to help programmers embed Zoom functionality inside their applications. Zoom SDK is a component of Zoom Developer platform which includes SDKs, APIs, webhooks, chatbots, and distribution for applications and integration. Last year Zoom launched Zoom Apps and Zoom Marketplace at its Zoomtopia virtual conference to bring applications and productivity into the Zoom experience.
Zoom is not alone in evolving their Unified communications as a service (UCaaS) capabilities and market. Tencent rolled out their video conferencing solution for the global market, Facebook expanded their offerings in videoconferencing applications through the integration of new features, Google announced a series of upgrades and innovations to better support the flexibility needs of frontline and remote workers in Google Workspaces, and Microsoft introduced Viva that aims to bring together communications, knowledge, learning, resources, and insights together.
“Ecosystm research shows that 50% of organisations will continue to increase use of collaboration platforms and tools in 2021. However, if videoconferencing remains just a tool to log in to for meetings without purpose-built workflows and functionality that suit worker profiles, then it will start losing its attractiveness. Vendors need to work on user interface, UX, the lighting, security, audio quality and many other aspects that draws users to the platform.
The big question is what next for videoconferencing vendors? How can engineering teams innovate to build the capabilities organisations want when they use drawing tools, share images, have chats and discussions within collaboration platforms? How do you make the experience real so employees can “live and breathe” in the environment?
Zoom investing in understanding what apps and workflows are suited for a particular vertical or business is fundamental to the future of video and collaboration and will be a big game changer.”
“Zoom is continuing to expand the markets in which they operate and investing in start-ups increases their opportunities to grow as a platform. Their App Marketplace already offers a rich source of innovations, with Zoom themselves appearing to develop integration with market leaders such as Salesforce and HubSpot in the CRM category. This has led to Zoom integrations in close to 80 CRM products – including integrations developed in-house by Salesforce and HubSpot to supplement Zoom capabilities.
They are promoting an open web and audio-conferencing platform that does not limit users to the walled-garden approach of competitors such as Microsoft Teams.
Zoom’s strategy creates the opportunity for CIOs to access a widely used, rich functionality, digital collaboration channel – one they can integrate seamlessly into their existing digital channels knowing that their customers are likely to be highly familiar with the user experience.”
Get more insights on the impact of the COVID-19 pandemic and technology areas that will see innovations, as organisations get into the recovery phase.
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.”