Zoom Communications
Overview, Pricing& Strategy
Contents
Competitive
Analysis for
Teams
Microsoft Teams Cons and
Suggestions
Zoom Comm SWOT Analysis
Microsoft Overview & SWOT
Competitive Analysis - Teams vs
Zoom
Video Comms Overview
Microsoft Teams Pros vs Zoom
Cons
Recommendations
3.
Video Communications Overview
TECHNICAL
ANALYSIS
Human’srelationship with voice and video call is changing in COVID-19 era.
• With hundreds of millions of people under lockdown around the world, telecommunication is going up and people have been
connecting in new social ways.
• As video calls have become the norm and for people all over the world to feel connected and to work. It has also opened windows
for many businesses to run smoothly during COVID19 crisis.
• Work-From-Home policies, social distancing, and government lockdowns and home quarantines have surged the demand for video-
conferencing apps, for both personal and business use
Video Communications in brief
Growth Statistics during COVID crisis
The rise in remote work (WFH) has made video conferencing systems a
necessary tool for many businesses.
Microsoft: Microsoft reported that its Teams collaboration platform has seen a
500% increase in meetings, calls, and conferences and saw a 200% increase in
usage on mobile devices, since Jan 2020.
Zoom: On March 11, 343,000 people globally downloaded the Zoom app,
60,000 in the U.S and Zoom stock has gone up by 58% and become
mainstream communications tool as well as a social platform for millions
Cisco: WebEx has reported 6.7 billion meeting minutes in March and is hosting
more than 4 million meetings a day globally
Market Statistics and Drivers
Stats: According to Research and Markets report global video conferencing (includes
Audio, Video & Chat) market was at US$4.2 Bn in 2020 and expected to reach US$8.6 Bn
by 2027 with CAGR of 9.9% from 2020 to 2027.
• North America held a significant market share in 2019 and will remain at its position until
the end of the forecast period
Growth Drivers:
• Growing demand for unified communication in the U.S. and Europe
• Increasing trend of work from home and online learning globally
• Demand for high-speed communication infrastructure in Asia Pacific
• Increasing trend for cloud applications in Latin America
• Rising need to reduce communication cost among organizations
4.
Zoom Communications Overview(1/4)
Company Information and Quick facts
About: Zoom Video Communications, Inc. is an American communications technology company that provides cloud-based video conferencing service for the customers to
virtually meet with others either by video or audio-only or both.
• It provides videotelephony and online chat services through a cloud-based peer-to-peer software platform and is used for teleconferencing, telecommuting, distance
education, and social relations
• Zooms solution offers the video, audio, and screen-sharing experience across Zoom Rooms, Windows, Mac, iOS, Android, and H.323/SIP room systems.
Executive Team: Janine Pelosi - Chief Marketing Officer, Kelly Steckelberg - Chief Financial Officer, Ryan Azus - Chief Revenue Officer. Brendan Ittelson - Chief Technology Officer.
Sunil Madan - Corporate Chief Information Officer, Oded Gal - Chief Product Officer
Value Proposition: Zoom offers three primary value propositions: Accessibility, Performance, and brand/status.
Revenue Breakdown: Key Competitors:
Founded/launched:
2011/2013
HQ: San Jose,
California
Revenue: $622.7
Mn (2020)
Market share:
40.49% (2020)
Founder & CEO:
Eric Yuan
Employees:
2,532 (2020)
11.40%
80.40%
8.20%
EMEA
Americas
APAC
5.
• Zoom Meetings& Chat: Zoom offers video conferencing with real-time messaging
and content sharing for Enterprises
Zoom Pricing Plans:
Zoom Communications Pricing (2/4)
Products and Pricing models Overview
• Zoom Phone: A modern cloud phone system to talk, record and voice mail to
others
Pricing: Starting at $10/month per user
• Zoom Video Webinars: Allows to join Live and on-demand virtual events
Pricing: $14.99/month per host
• Zoom App Market Place: Open and secure platform that allows third-party
developers to build applications
• Zoom Rooms: Conference rooms that make it easy to run or join video meetings
Pricing: $49/month subscription fee per room
BASIC
Min hosts: 1
$0
/month
Max participants: 100
Meeting duration: 40-minute limit
on group meetings
Features: Unlimited meetings,
HD video and voice, simultaneous
screen share
PRO
Min hosts: 9
$14.99
per host/month
Max participants: 100
Meeting duration: 24 hours
Features: Everything in the Basic
plan, plus advanced administrator
meeting controls, reporting,
custom personal meeting IDs
BUSINESS
Min hosts: 10
$19.99
per host/month
Max participants: 100
Meeting duration: 24 hours
Features: Everything in the Pro
plan, plus dedicated phone
support, an administrator
dashboard, vanity URLs
ENTERPRISE
Min hosts: 100
$19.99
per host/month
Minimum number of hosts: 100
Max participants: 100
Meeting duration: 24 hours
Features: Everything in the
Business plan, plus unlimited
cloud storage
6.
Zoom Communications Strategy(3/4)
Free Accounts: Zoom is already offering free Zoom PRO accounts to educators at the onset of the COVID crisis in the corporate social responsibility space. The company also
providing resources around COVID-19 with a regularly updated support center and partnerships with brands and organizations
Drive new customer acquisition: Zoom platform is attracting free hosts to use their platform and promote usage that allows hosts and their meeting attendees especially for
WFH customers to experience the difference of Zoom.
Expand within existing customers: Zoom platform begin in a line of business and then organically expand across departments. Customers are also purchasing services for
webinars, room solutions, and phone for Unified Communications as a Service (“UCaaS”) experience from the Zoom.
Innovating platform continuously: Zoom’s engineers worked hard on video communication and collaboration technologies and released over 300 new features in 2019. They
offered the best experience to the users by dedicating approximately 20% of engineering capacity to developing on-demand, customer-requested features that would be
valuable across the customer base.
Market Strategy
Competitive Advantage
Being in a very highly competitive market Zoom has very strong unique capabilities and abilities based on the following competitive factors:
• Video-first platform
• Cloud-native architecture
• Functionality and scalability
• Ease of use and reliability
• Ability to utilize existing infrastructure, such as legacy conference room hardware and
• Low total cost of ownership.
7.
W
S O
T Competitionsfrom Microsoft, WebEx, GoToMeeting:
The features offered by Zoom and its competitors are
highly comparable and relatively similar. These
competitors can pick up any new features/products
that the Zoom meeting offers thereby customers
could switch from zoom easily to others
Do not support end-to-end encryption:
Zoom is not end-to-end encrypted.
Zoom uses a TLS (Transport Layer
Security) connection for encryption,
which might create data breach and
Privacy/Security issues
Expand international market: Zoom has entered web
conferencing market through deploying a Freemium
strategy
• Users become more familiar with the platform, it
becomes easy to expand within an organization,
eventually create opportunities for upselling.
Zoom Communications SWOT Analysis (4/4)
SWOT Analysis
Easy to use: Anyone can join the
meeting without installation or an account
Collaboration Feature: Zoom offers robust
integrated room system that include touch
display application and wireless content
sharing
8.
Microsoft Teams Overview(1/2)
Company Information and Quick facts
About: Microsoft Teams is a collaboration tool designed to improve internal communication .
• Microsoft Teams is a popular choice for businesses that use Office 365 products. It is packaged in with the Office 365 suite and syncs up well with
other Microsoft technologies
• It brings together people, conversations and content along with the tools that teams need so they can easily collaborate.
Executive Team: Jeff Teper - Corporate Vice President, Ilya Bukshteyn – Head of Product,
Value Proposition: MSFT Teams offers three primary value propositions: Increase employee productivity, Improve collaboration across the organization and Enable innovation.
Active Users Breakdown:
Key Competitors:
launched: May 2017
HQ: New York,
NY
Revenue: Overall
$3.2 Bn including
Teams (2020)
Market share:
21% (2019)
Introduced : Kirk
Koenig Bauer
(CVP)
Total Users: 75
Mn+
13
32
75
Jan-19 Aug-19 Jun-20
Daily Active users (in Mn)
Active users
9.
W
S O
T Limitations:Microsoft Teams loses some of its utility if a
business is not using the Microsoft suite of office software
Integration Options: Slack can integrate with practically
any app, where Teams integrates tightly with Microsoft
Products
All in one: Teams cannot purchase directly,
because it is packaged tool that comes
along with Microsoft products like Office
365 etc.
Multiple accounts: Cannot use
multiple Teams accounts, with different
organizations, at the same time. Users must
log out to the existing account to open the
other.
Linux ready: The Teams work in cross-platform and available on
Windows, Mac, iOS and Android. By 2020 end it will be available to
Linux platform as well, where there is a chance in increase of user's
strength
More Adaptability: Teams also fits well with Microsoft's collaboration
hardware, from Surface Hub to the newly announced Surface Neo
and Duo.
Grab the Accounts: Zoom has been banned in many developing
countries and many Industries due to security reasons and data
breach, that results many to turn to Teams
Microsoft Teams SWOT Analysis (2/2)
SWOT Analysis
Digital Workspace: Many business gets
benefitted by moving to digital workplace
in the cloud.
Enhanced Team work: Unlike email,
Teams improves employee communication,
productivity, and teamwork by integrating
all forms of collaboration into one single
user interface
10.
Competitive Analysis -Teams vs Zoom
CRITERIA MICROSOFT TEAMS ZOOM COMMUNICATIONS
Market Segment Enterprise Small Business
Unique Categories Business Instant Messaging Virtual Classroom, UCaaS Platforms, and Screen Sharing
Free Trail
Presentations
Whiteboarding
Hand Raise
One-Click Join
Recording
End-to-end Security
Max Participants 10,000 Members 500 Members
Multiple screen share
HD Video and Audio
Break out Rooms
Interactive Poll
Browser Plugin for Improved Functionality
Annotate Shared Content
11.
Microsoft Teams Consand Suggestions
CRITERIA CONS SUGGESTIONS
Gmail Integration Microsoft Teams doesn’t integrate with Gmail unlike Zoom Teams need to add this feature and allowing users to instantly escalate any chat to
a video collaboration session across desktops, mobile devices, and conference
rooms
Internet
Bandwidth
Users can experience zoom services even in low internet speed,
Unlike Teams which require good Internet speed
Teams need to focus on allocating band width and allowing users to experience the
services even in low internet along with uninterrupted call quality during WFH’s
Call-in support
costs extra
Teams call-ins is available as an add-on, but only with its highest
premium package
Teams need to make available of Audio-conferencing feature to the basic package
users as well, which ultimately increase the user's adoption
Teams Video call Zoom has the feature to show everyone on a video, whereas
Teams shows 4 screens at a time
Developers need to work on this issue, where all the users can able to see each of
them along with their names, even when someone is speaking
Usability Teams can be slightly more complicated if a user isn’t familiar with
the interface and default features
Developers need to focus on people who is having nontechnical knowledge by
providing easy control access
Extra Features Zoom offers content management, content library, customizable
branding which Teams doesn’t have
Having these features in teams will get more customers who are working into
Marketing and sales profession
Conversation
History
Unlike zoom, loading conversation history in teams is quite
difficult and takes lots of time
Developers need to make this feature super quick, so that users can quickly look at
the chat history
User Interface
Issue
Most of the customers noticed that Web version is very slow
compared to the application version of Teams
UI engineers need to work on this and make user interface easily accessible and
enable user’s experience in a smoother way
Limited Service Teams free version of the service is limited. Users can't host
conferences and there is no 24/7 support isn't available
Teams need to change the accessibility features for the free version and make users
to get features like conferences hosting and 24/7 support etc.
Customer Support Microsoft has several support lines and customers need to wait
until they transfer to specific department from tele caller
representative.
It would be effective if Teams has setup a system where customers can able to call a
direct line instead of being bounced around to different departments.
12.
Microsoft Teams Prosvs Zoom Cons
CRITERIA MICROSOFT TEAMS COMPETITIVE ADVANTAGE
Live chat Feature Microsoft Teams is great for businesses that can make use of the collaboration features such as the live chat function.
Bad video Quality There is a free version of Zoom which gives 40 minutes long video calls for up to 100 people. Most of customers have found the video quality is poor
and the call quality overall is slightly compromised. Teams can utilize this opportunity by introducing free version of Teams and provide good quality
of video calls, that might increase the user's adoption rate
Team collaboration
tools
Microsoft Teams has a more comprehensive collaboration offer than Zoom, and its tools can be easily integrated with other Microsoft services like
email and calendars. However Zoom does provide some collaboration functionality, with video, audio conferencing, collaboration, chat, and webinars
Security Microsoft has detailed its security measures, which include deleting all data when subscriptions end and a commitment to not use Teams data to
provide ads or track participant attention. Where Zoom has recently exposed various security issues including the problem of “Zoom-bombing
Post Pandemic effect Teams would be the first choice for Work from Home professional because of the secure end to end solution. Because they are already using
Office365, and don’t have to pay per user for using it. Post pandemic when everyone get back to work, most of the users probably cancel
their Zoom subscriptions
Slowly loosing
business
• Zoom has failed to show its uniqueness like how it has initially appeared. The main issues appeared to be lack of end-to-end encryption on calls
and the ability for hackers to join calls uninvited, and data leak.
• Many large organizations and institutions such as Google, NASA and the United States Senate have banned the usage of Zoom. This might be an
opportunity for Teams to grab the market on the features that they have regarding security.
Methodology: I have gathered and analysed the information from various analyst sources, Press releases, Public domain websites and
Review/Ratings websites.
13.
Recommendations
• Pay tounlock Features: Many of the benefits Microsoft Teams has to offer are partially locked behind a paywall, for which users aren’t looking to spend money. Microsoft
need to work on this to introduce discounts and offers to lure customers
• User Experience: The user interface and experience is challenging in Teams, where they need to understand how to interact in different channels and Teams and other Office
365 mechanism. Microsoft need to work on this to make the functionality easy and accessible to all
• Technical Snag: During the ongoing coronavirus pandemic, Microsoft Teams has faced the two outages issues and, they claimed that they forgot to renew a TLS (HTTPS)
certificate, forcing the service offline and leaving users unable to communicate with colleagues for hours. This might be a minor technical problem, but if this continues, that
might be a serios threat to them by losing business
• Storage: Teams need to enable an option to save recorded meeting in local drive instead of cloud. Because some of the customers wont trust cloud due to security and
privacy concerns
• Screensharing: Unlike Windows and Mac users, Linux users don’t have option to share the screen . Teams need to enable this feature for smooth access for Linux users
• Deployment: Unlike other players, Teams don’t have deployment in On premise and Hybrid . Teams need to increase their deployment sources.
Conclusion
Overall research and findings proves that, Microsoft Teams needs to make revolutionary changes in their business model concerning to Pre and Post COVID. They need to come
up with a solution that need to be stand alone concerning their User Interface, features, Marketing, Customer support and Pricing.
• The bottom line is that, during this pandemic, we are using both Zoom and Teams. But Office 365 is key to our business and we use it across all areas of the organisation.
• We are using Teams all throughout the day. We are using Zoom for occasional team meetings. The functionality of Office 365 means Teams would be our first choice
as a secure end to end solution.
• In truth, when the pandemic is over and we are back to work, we will probably cancel our Zoom subscription except some users who may still use for broadcast webinars
where it definitely outperforms Teams, but as an all-round collaboration tool, Teams simply offers great services than others.