Business analysts believe Zoom could buy to grow: AI, collaboration
- Zoom is trying to expand beyond video conferencing to become a more robust communication platform.
- Mergers and acquisitions could be on the table: Analysts have highlighted the 12 companies they think Zoom could buy.
- Collaboration tools, contact center companies, or machine learning startups would all make sense.
- See more stories on the Insider business page.
The exponential and pandemic-driven growth has stabilized, its new products are becoming more and more important.
While video conferencing is still Zoom’s bread and butter, companies like its cloud telephony service and application platform will drive its growth in the future and it has expressed its intention to evolve into a platform. more robust form of communication, potentially through features such as email or calendar.
While Zoom has traditionally approached growth with a “build” versus “buy” mentality, according to Moor Insights founder Patrick Moorhead, that could change.
At the end of June, Zoom announced its intention to acquire German startup Karlsruhe Information Technology Solutions (Kites for short) to bring real-time translation based on machine learning to its platform. Terms of the deal have not been made public, but Kite’s 12 employees will join Zoom’s engineering team.
Kites was only Zoom’s second acquisition after purchasing security startup Keybase last year to incorporate end-to-end encryption into its video tools. The firm also had $ 4.2 billion in available cash. at the end of her fourth trimester. While CFO Kelly Steckelberg said some of the money would be used to build data centers, she also mentioned that mergers and acquisitions were also on the table.
Moorhead and four other analysts pointed out a few areas they think Zoom could target for acquisitions:
Collaboration capabilities, such as file sharing and workflow management, to increase its productivity offering, contact center technology or a competitor in the cloud telephony software market to build its customer base more quickly, or machine learning startups to give customers new ways to use their Zoom call data.
Insider spoke to five analysts about the companies Zoom might look to acquire next, here are 12 companies they named: