QSights: Zoom's Thrust into Contact Centers is a Watershed Event- Defensive M&A to Follow

For the past six months, it has been rumored Zoom was in the market to either buy or build a Contact Center. To accommodate its rapid expansion, the incorporation of additional “tools” and adjacent markets to Meetings, Rooms, Chat, and UCaaS also became an increasingly desirable option. Enter—the only CCaaS pure-play vendor left at scale on the public market (at least in terms of revenue, installed base, product maturity)—Five9.

In one of the most well-orchestrated moves in recent time, Zoom will aim to own the entire “born in the cloud” communications stack, and value chain with all its adjacencies (i.e., VCaaS, UCaaS, CPaaS, CCaaS) and emerging artificial intelligence / intelligent voice assistant (AI / IVA) workflow capabilities. Combined, this combination lands Zoom into a $100B+ video-enabled Collaboration and Customer Engagement market.

The detailed report includes detailed analysis of Zoom’s strategic rationale and broader market implications including:

  • Zoom’s ownership of the entire Cloud Communications value chain
  • The addition of Zoom Phone and its effects on the Mid-Market / Enterprise distribution channel
  • How pricing Five9 at a 30x multiple could play a factor in future bidding wars
  • Broader customer experience as a long-term play
  • Will CRM-like applications continue to gain momentum within the M&A landscape?
  • How this merger presents the biggest challenge to Cisco and RingCentral

Read full version here.

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