Zoom went huge and didn’t go dwelling. Within the largest acquisition deal within the contact heart trade, Zoom announced its intent to acquire Five9 (a cloud contact heart supplier) for $14.7 billion — a stable transfer by the newest tech vendor to have change into a verb in our vernacular (Google, Uber, Venmo, and many others., being others). Zoom possible evaluated a number of smaller and cheaper contact-center-as-a-service (CCaaS) suppliers (of which there are numerous), nevertheless it finally selected to leverage its inventory worth to “go huge” with Five9 — a Forrester Wave™ Leader.
Zoom’s intent to accumulate Five9 comes at an fascinating time for the corporate. In 2020, the corporate greater than tripled its income, and whereas Zoom continues to develop in 2021, its core market of videoconferencing has proven indicators of commoditization, with elevated competitors from Cisco, Google, Microsoft, and others and as places of work reopen and in-person occasions resume. Transferring into an adjoining market equivalent to contact facilities provides worth to Zoom’s portfolio and builds on its momentum within the enterprise as:
- Cloud migration will proceed to be a development space. Whereas the pandemic accelerated the migration of contact heart techniques from legacy, complicated, on-premises software program to CCaaS, Forrester estimates there may be nonetheless over 60% of the market remaining to transition to cloud.
- UCaaS and CCaaS are complementary options. Zoom has expanded into different adjoining markets from videoconferencing, together with unified communications as a service (UCaaS) with Zoom Phone and digital occasions with Zoom Events. As CCaaS is commonly bought with UCaaS, it is a pure class for Zoom to leap into, as connect charges in double-digit percentages have been seen amongst different distributors offering each.
- Established companions are wanted to win the bigger contact heart offers. Because the CCaaS market has now penetrated higher-end prospects (5,000-plus seats), Five9 has nurtured main companions equivalent to AT&T and Deloitte to spice up its skills to pursue these complicated alternatives.
What This Means For Five9 And Zoom Enterprise Clients
As in any acquisition, the potential for disruption exists. Five9 prospects will profit from elevated funding and entry to customers already utilizing Zoom, but Five9 prospects might want to monitor the progress of the mixing and its affect on assist groups, buyer success packages, and product roadmaps. For Zoom prospects, there may very well be bundling advantages if they’re CCaaS, however that won’t happen till the merger is accomplished and the 2 companies work out mixed licensing plans.
Whereas Zoom is a pacesetter in videoconferencing, Forrester doesn’t see this resulting in mass adoption of video within the contact heart — as face-to-face video in customer support will stay a distinct segment space. Zoom’s ubiquity amongst customers and easy-to-use assembly expertise, nonetheless, may present a bonus for manufacturers trying to drive deeper buyer engagement with video in some use circumstances however general a sharpened deal with making experiences for purchasers, data staff, and brokers extra “frictionless” — what appears to be the mantra for Zoom.