Why Zoom acquired Five9 for $14.7 billion: Enterprise wallet share and a massive buyer engagement perform

With the invest in of 59 for $14.7 billion, Zoom Video clip Communications is wading into a crowded contact centre as a services market place but is betting that it can blend platforms and merchandise like Zoom Mobile phone to grab additional business wallet share.

The acquire of Five9 will give Zoom additional heft in the business and a way into the $24 billion contact heart current market. However, there are some big players in that space presently. Cisco, Avaya, Awesome, Genesys, AWS and Twilio are all rivals in some way.

Oppenheimer analyst Ittai Kidron mentioned in a study note:

Five9 will give Zoom accessibility to an founded income corporation and company customer foundation that would have taken time and financial investment to build. We’re constructive on the cross-marketing chances the merger produces, as we feel Five9’s selling/go to sector movement reaches a new and various purchasing middle than Zoom at the moment reaches with its Zoom Conferences base (video clip) and expanding Zoom Cellphone (voice) growth.

In truth, Zoom CEO Eric Yuan mentioned Five9 is a natural in good shape that will support make it a broader consumer engagement and communications platform. Yuan, speaking on a conference simply call Monday morning, reported:

As we continually appear for means to boost our system, 59 is a organic in shape that will greatly enhance our ability to deliver contentment and benefit to our company shoppers. At Zoom’s main, we imagine sturdy and responsible communication engineering can permit interactions that develop a greater empathy and trust. So, we imagine that holds particularly correct for customer engagement. Enterprises mainly converse with their consumers via the contact middle. This acquisition can convey jointly greatest-in-class video clip and get hold of middle solutions to develop a main customer engagement system that will redefine how businesses of all dimensions have interaction with their prospects.

Rowan Trollope, CEO of 59, mentioned his enterprise is hunting to make buyer assistance a lot more human. The combination with Zoom will enable it to accelerate its mission and scale globally.

What the organizations are hoping to do is build an built-in interaction and collaboration stack. Believe suite meets very best of the breed. CFO Kelly Steckelberg stated the speak to heart is the front door of customer engagement, and Zoom with Five9 will be an omnichannel platform.

“The combination generates a main unified communication and shopper engagement platform that can be offered throughout both equally shopper bases. It will enable us to cross-provide Zoom Phone to Five9 buyers and carry the get hold of middle to Zoom’s premier customers,” said Steckelberg.



Trollope reported joint consumers were being significantly searching to purchase Zoom and Five9 collectively. “These huge IT potential buyers, they genuinely want a one communications platform,” stated Trollope.

Construct vs buy

Stifel analyst Tom Roderick stated the invest in of 59 arrives at a fantastic time for Zoom. To start with, Zoom required to demonstrate it was more than a video conferencing corporation. Zoom also expanded with Zoom Cell phone, but the entire speak to center buildout would have taken years.

Roderick explained:

Zoom is in need to have of emphasizing the alternatives past Online video Conferencing. The 12 months over 12 months development compares are already entering their toughest time period for Zoom, and we believe the mixture of a “what is actually upcoming?” story together with an inflection stage for Zoom Phone will make the sizable combination very attractive.

Zoom CEO Yuan mentioned the final decision to 59 made perception about making a get hold of heart platform since the cultures aligned, and the two companies already landed substantial deals with each other. “Usually, you establish a option I believe not only do you take many years’ effort but also purchaser, they do not want to hold out, suitable?” reported Yuan.

Yuan extra that Zoom’s technique to the make contact with centre would proceed to be neutral even with Five9. He explained every thing has to be viewed from the shopper point of view, and Zoom customers have deployed Genesys and Twilio, and the business is effective with various suppliers.

Trollope added that Five0 supports all unified communications players as well. 



Eventually, Zoom acquired 59 for the reason that it wanted to double down on the get hold of heart and unified communications. “Search at our video clip assets, seem at their AI and pretty robust back-stop, and we do see the substantial possibility in advance of us,” said Yuan. “I assume that jointly, we can genuinely create a thing pretty neat in the upcoming to redefine the shopper engagement system.”

Posted on