Zoom - Developing A People-Centric Cloud Service

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The global video conferencing market size is expected to reach USD 10.92 billion by 2027, exhibiting a CAGR of 9.7% during the forecast period. Zoom Video Communications, Inc. incorporated on April 04, 2011, is a provider of video-first communication platform and Web conferencing services. In recent times, Zoom became a global phenomenon as businesses had to revert to working from home.

The Company offers cloud-native platform, which unifies cloud video conferencing, online meetings, group messaging and a software-based conference room system, which enables users to easily experience Zoom Meetings in their physical meeting spaces.

Zoom- Company Highlights

Startup Name Zoom Video Communications, Inc.
Headquarters San Jose, California
Industry Video Conferencing, Online chat and Business telephone systems
Founded April 21, 2011
Founders Eric Yuan
Total Funding $146M (As of 2019)
Area Served Worldwide
Website www.zoom.us

Zoom - About and How it Works?
Zoom - Recent News
Zoom - Founder and History
Zoom - Mission
Zoom - Business Model
Zoom - Revenue and Growth
Zoom - Funding And Investors
Zoom - Investments
Zoom - Acquisitions
Zoom - Competitors
Zoom - Challenges Faced
Zoom - Future Plans
Zoom - FAQs

Zoom - About and How it Works?

Zoom Video Communications, Inc. (or simply Zoom) is an American communications technology company headquartered in San Jose, California. 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.

The company develops a people-centric cloud service that transforms real-time collaboration experience. The Company offers unified meeting experience, a cloud service that provides a 3-in-1 meeting platform with HD video conferencing, mobility, and web meetings. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

Users can hold one-on-one meetings or conduct video conferences with up to 500 participants. Screen sharing allows meeting participants to better coordinate within meetings and distribute information.

The worldwide adoption of Zoom is powered by its two core products: Zoom Meetings and Chat as well as Zoom Rooms and Workspaces. Zoom Meetings can be attended and held via a web browser, or desktop and mobile applications. The  Chat works as an extension to the Meeting product where users can interact through a chat with each other, share files, or create groups.

Rooms and Workspaces, on the other hand, allows businesses to utilize hardware such as a computer, tablet, camera, microphone, and more to hold virtual meetings. The product is specifically aimed at larger-scale organizations, which need to hold meetings across different offices. To make integration with the hardware easier, Zoom even offers its own set of hardware that they developed in collaboration with other manufacturers.

Zoom - Recent News

As of October 2020, Zoom launched live captioning, a new feature that will make sure you'll catch every word of meeting.

In this, you can see spoken words into caption. Otter.ai is partnering with Zoom to launch live captioning for Zoom calls. The feature is available as long as the user has a Zoom Pro account or higher. When the user turns the feature on with Otter Live Notes integrated into your Zoom accounts, the user will be able to see any spoken words turned into highly accurate captions near the bottom of the screen.

Our primary logo is the Zoom wordmark. Its bold simplicity reflects our culture and product.
Company Logo of Zoom
Company Logo of Zoom

Zoom - Founder and History

Zoom was founded by Eric Yuan, a former corporate vice president for Cisco WebEx. He left Cisco in April 2011 with 40 engineers to start a new company, originally named Saasbee, Inc. Prior to starting Zoom, Yuan spent 14 years leading engineering teams – first at WebEx, then at Cisco after its acquisition of WebEx in 2007.

Founder of Zoom
Founder of Zoom

At Cisco, he often saw how frustrated the company’s customers were with their inability to listen to their demands and the slow product iteration process.

The company had trouble finding investors because many people thought the videotelephony market was already saturated. In June 2011, the company raised $3 million of seed money from WebEx founder Subrah Iyar, former Cisco SVP and General Counsel Dan Scheinman, and venture capitalists Matt Ocko, TSVC, and Bill Tai.

In May 2012, the company changed its name to Zoom, influenced by Thacher Hurd's children's book Zoom City. In September 2012, Zoom launched a beta version that could host conferences with up to 15 video participants. In November 2012, the company signed Stanford University as its first customer.

The service was launched in January 2013 after the company raised a $6 million Series A round from Qualcomm Ventures, Yahoo! founder Jerry Yang, WebEx founder Subrah Iyar, and former Cisco SVP and General Counsel Dan Scheinman. Zoom launched version 1.0 of the program allowing the maximum number of participants per conference to be 25. By the end of its first month, Zoom had 400,000 users and by May 2013 it had 1 million users. In the recent COVID times, Zoom rose to worldwide prominence as many companies use it to conduct meetings and organize their work processes.


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Zoom - Mission

Zoom's mission statement says, "Our mission is to develop a people-centric cloud service that unifies your meeting experience and improves the quality and effectiveness of communications forever."

Zoom - Business Model

The business model of Zoom is built on charging businesses a reoccurring subscription fee for the various products the company offers. On top of that, Zoom makes money from the promotion of hardware products.

Zoom - Revenue and Growth

Zoom Video Communications revenue for the quarter ending October 31, 2020 was $0.777B, a 366.52% increase year-over-year. Zoom Video Communications revenue for the twelve months ending October 31, 2020 was $1.957B, a 262.29% increase year-over-year.

Year Amount Percentage Change from last year
2020 $0.623B +88.39%
2019 $0.331B +18.19%

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With the coronavirus pandemic hitting the whole world at large, the face-to-facebusiness activities had to take a toll. That’s when this company raised to itsmagnificence. We are talking about the Zoom cloud meeting which was founded byEric S. Yuan in 2011. Zoom is an American company offering r…

Zoom - Funding And Investors

Zoom has raised a total of $146M in funding over 7 rounds. Their latest funding was raised on Apr 19, 2019 from a Post-IPO Equity round.

Date Round Amount Lead Investors
Apr 19, 2019 Post IPO Equity - -
Jan 17, 2017 Series D $100M Sequoia Capital
Feb 4, 2015 Series C $30M Emergence
Sep 24, 2013 Series B $6.5M Horizon Ventures
Jan 28, 2013 Series A $6M Qualcomm Ventures
Jun 1, 2011 Seed Round $3M -
Feb 5, 2010 Pre Seed Round $500K -

Zoom - Investments

Zoom has invested in Neat on Jul 23, 2020.

Date Round Organization Name Amount
Jul 23, 2020 Neat Corporate Round -

Zoom - Acquisitions

Zoom has acquired Keybase on May 7, 2020.

Aquiree Name Date Amount About Acquiree
Keybase May 7, 2020 - Keybase offers end-to-end encrypted chat, file-sharing, and code-hosting all based on a cryptographic platform.

Zoom - Competitors

Top competitors of Zoom are :

Zoom - Challenges Faced

With all this extra attention, Zoom is now facing a huge privacy and security backlash as security experts, privacy advocates, lawmakers, and even the FBI warn that Zoom’s default settings aren’t secure enough. Zoom now risks becoming a victim of its own success.

Zoom has battled security and privacy concerns before. Apple was forced to step in and silently remove Zoom software from Macs last year after a serious security vulnerability let websites hijack Mac cameras. In recent weeks, scrutiny over Zoom’s security practices has intensified, with a lot of the concern focused on its default settings and the mechanisms that make the app so easy to use.

Each Zoom call has a randomly generated ID number between 9 and 11 digits long that’s used by participants to gain access to a meeting. Researchers have found that these meeting IDs are easy to guess, allowing anyone to get into meetings.

While Zoom still states on its website that you can “secure a meeting with end-to-end encryption,” the company was forced to admit it’s actually misleading people. “It is not possible to enable E2E encryption for Zoom video meetings,” said a Zoom spokesperson in a statement.


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Zoom - Future Plans

During the vision keynote of Zoomtopia 2020, Zoom Video Communications, Inc. unveiled major developments to its platform that evolve the future of communications.

OnZoom: A one-of-a-kind online event platform for Zoom users to create and host free, paid, and fundraising events. Hosts can grow their businesses, expand their reach into new audiences, and give back through native donation integration. Zoom users can discover these events and sign up for new experiences with additional functionality like gifting tickets and an attendee dashboard to keep tabs on favorite events and brands.

New end-to-end encryption (E2EE) offering: This optional feature will be generally available in technical preview to free and paid Zoom users next week. It can be enabled at the account, group, and user level, and, depending on how the account admin sets up the feature, can be toggled on and off by the host on a by-meeting basis. When enabled, Zoom’s E2EE ensures that communication between meeting participants using Zoom applications is encrypted using cryptographic keys known only to the devices of those participants.

Customizable SDK: Zoom is adding new enhancements to its SDKs, enabling developers and companies to enrich their own custom video-based applications with Zoom’s platform, available now on Android, iOS, and web. Developers can take advantage of a customizable UI and session control, making it easier for them to bring high-quality video, audio, and instant chat to their applications.

Zapps: Zapps enable developers to create apps that power workflows before, during, and after the meeting. Zoom has brought first and third-party developed apps into the meeting experience for real-time adoption. Zapps are designed to give developers a fast and flexible web view canvas to create apps, viral distribution, and IT deployment and manageability.

Zoom - FAQs

Who's the CEO of Zoom?

Eric Yuan, the founder is the CEO of Zoom.

How does Zoom make money?

The business model of Zoom is built on charging businesses a reoccurring subscription fee for the various products the company offers. On top of that, Zoom makes money from the promotion of hardware products.

Who founded Zoom?

Eric Yuan founded Zoom.

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