Looking to the future: Zoom buys Five9 for $14.7 billion
During the lockdowns of the last year and a half, many new phrases and terms have become regular to hear in conversation. For people who were not allowed to work from the office and forced to work remotely, Zoom is a name that can hardly be avoided.
Zoom completely took off during the coronavirus pandemic. As a videoconferencing platform it was perfectly placed to fulfil the new set of needs that so many people were now faced with. Despite the colossal success of the past year and a half from a business perspective for Zoom, they are now turning their attention to the future. In an attempt to sure up their business forecast in a world where there is a possibility that people will not need to rely on Zoom for their communication, Zoom has purchased Five9 for the figure of $14.7 billion.
What is Five9?
Five9 is a market leading provider for cloud contact center software. Five9 works with over 2000 customers around the world to provide them with software for customer service centers. Within this software, Five9 is capable of offering digital engagement, analytics, workflow automation, workforce optimisation, and AI. All of this is with the aim of helping a business redefine what customer experience means. Some of the benefits of using Five9 are a higher degree of productivity, more connectivity between a business and contact center, as well as increasing revenue, customer trust and loyalty.
Five9 has been in operation since 2001. In 2003 they released the first Virtual Contact Center. Since then there has been a significant amount of growth that includes opening the Southeast Asia headquarters in 2004 and providing cloud CRM integration with Salesforce in 2005. In 2009, Inc. Magazine placed Five9 as one of the fastest-growing private companies in the US. 2011 saw them opening up a new worldwide headquarters in San Ramon, CA, to accommodate rapid company growth. In 2014, there was an initial public offering on the NASDAQ.
Five9 have consistently shown over the last two decades that they are an innovative business that is capable of leading a market and finding the correct solutions to clients’ needs. By Zoom bringing Five9 within its ecosystem, the business is making a bold move to define its direction moving forwards into the future.
On this subject, the CEO and founder of Zoom, Eric Yuan made this comment, ‘We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers. [...] Enterprises primarily communicate with their customers through the Contact Center, and we believe this acquisition creates a leading customer engagement platform that will help define what companies of all sizes can do with their customers. How do we connect with you[.]’
Within the same statement, Rowan Trollope, the Chief Executive Officer of Five9, comments that, ‘Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers. It has always been Five9’s mission to make it easy for businesses to fix that problem and engage with their customers in a more meaningful and efficient way. Joining forces with Zoom will provide Five9’s business customers access to best-of-breed solutions, particularly Zoom Phone, that will enable them to realize more value and deliver real results for their business. This, combined with Zoom’s ‘ease-of use’ philosophy and broad communication portfolio, will truly enable customers to engage via their preferred channel of choice.’
As Trollope mentions, Zoom Phone is playing a pivotal role within the vision of both businesses moving forwards. Five9 looks to be very compatible with Zoom phone, which is getting increasingly popular. Zoom phone is a system that effectively replaces older phone platforms. It will help companies create new ways of interacting with their customers. By combining Five9 and Zoom phone, there is a lot of potential for cross selling from one to the other. This is because the customer base of each of them are similar and looking for solutions that are related to both.
What the future holds for both companies cannot be completely known, but the acquisition of Five9 by Zoom does highlight the strength of the business. It could be a move that means Zoom will be sculpting the digital landscape, particularly with the business interactions realm, for years to come.