Why Zoom bought Five9 for $14.7 billion: Business wallet share and a massive customer engagement engage in

With the obtain of 59 for $14.7 billion, Zoom Video Communications is wading into a crowded speak to heart as a support industry but is betting that it can blend platforms and merchandise like Zoom Cellphone to grab far more enterprise wallet share.

The invest in of 59 will give Zoom additional heft in the organization and a way into the $24 billion make contact with center sector. However, there are some massive gamers in that space already. Cisco, Avaya, Great, Genesys, AWS and Twilio are all rivals in some way.

Oppenheimer analyst Ittai Kidron mentioned in a exploration notice:

Five9 will give Zoom accessibility to an set up gross sales firm and enterprise buyer base that would have taken time and expense to establish. We are optimistic on the cross-marketing alternatives the merger makes, as we imagine 59’s selling/go to industry motion reaches a new and unique getting heart than Zoom at this time reaches with its Zoom Meetings foundation (online video) and increasing Zoom Cell phone (voice) enlargement.

In fact, Zoom CEO Eric Yuan stated Five9 is a natural suit that will support make it a broader customer engagement and communications system. Yuan, talking on a convention call Monday early morning, explained:

As we repeatedly glance for methods to greatly enhance our system, 59 is a purely natural match that will enhance our ability to supply contentment and value to our company clients. At Zoom’s core, we feel robust and trusted communication know-how can permit interactions that build a better empathy and have faith in. So, we believe that holds specially genuine for purchaser engagement. Enterprises largely converse with their prospects through the get hold of heart. This acquisition can carry jointly best-in-class online video and make contact with middle methods to generate a major shopper engagement platform that will redefine how providers of all sizes engage with their shoppers.

Rowan Trollope, CEO of Five9, explained his company is hunting to make buyer assistance more human. The blend with Zoom will enable it to accelerate its mission and scale globally.

What the companies are hoping to do is create an built-in conversation and collaboration stack. Think suite fulfills most effective of the breed. CFO Kelly Steckelberg stated the call center is the entrance doorway of buyer engagement, and Zoom with Five9 will be an omnichannel platform.

“The mix produces a foremost unified interaction and customer engagement system that can be offered across both equally buyer bases. It will allow for us to cross-provide Zoom Mobile phone to 59 prospects and provide the get in touch with middle to Zoom’s largest shoppers,” claimed Steckelberg.



Trollope claimed joint consumers were increasingly seeking to acquire Zoom and Five9 collectively. “These substantial IT customers, they actually want a solitary communications platform,” stated Trollope.

Construct vs acquire

Stifel analyst Tom Roderick claimed the buy of 59 arrives at a good time for Zoom. To start with, Zoom desired to demonstrate it was more than a online video conferencing firm. Zoom also expanded with Zoom Phone, but the entire get in touch with middle buildout would have taken yrs.

Roderick said:

Zoom is in have to have of emphasizing the options over and above Video Conferencing. The year more than yr progress compares are currently moving into their hardest time period for Zoom, and we feel the mix of a “what is actually future?” tale together with an inflection issue for Zoom Cellphone will make the sizable mixture very pleasing.

Zoom CEO Yuan claimed the decision to 59 produced feeling over building a contact middle platform since the cultures aligned, and the two companies now landed massive offers together. “Otherwise, you develop a solution I believe not only do you just take numerous years’ effort and hard work but also consumer, they do not want to hold out, correct?” mentioned Yuan.

Yuan additional that Zoom’s strategy to the speak to heart would carry on to be neutral even with 59. He reported anything has to be viewed from the consumer perspective, and Zoom prospects have deployed Genesys and Twilio, and the organization is effective with many suppliers.

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



In the long run, Zoom bought Five9 simply because it wished to double down on the get hold of middle and unified communications. “Glance at our movie assets, search at their AI and really robust again-finish, and we do see the substantial chance ahead of us,” claimed Yuan. “I think that collectively, we can actually develop something pretty awesome in the potential to redefine the consumer engagement system.”