How does Zoom Make Money?
Amid COVID the most things that has been used when it comes to video calling is zoom whether its business call or online classes most people and companies zoom. On one hand where lockdown has been a great destruction to business it has also been extremely profitable to some companies like Zoom. From large to small enterprises zoom has been seen as the first choice of all.
Zoom was founded in 2011 by former Cisco Ex Eric Yuan in San Joss, California. By the time zoom was launched into the market there were already many great names there like Google hangout, Skype, Cisco. To make a name for itself in such a competitive environment was a big challenge for zoom. The main reason due to which zoom became popular was the increasing demand for work from home. The cloud-based app provides the high quality and frictionless audio and video call facility.
The app can entertain 100 plus attendees for 40 minutes time duration. The main focus of other apps is to provide audio however zoom focuses on smooth video rather than just audio. If you are a user of zoom you might wonder how the app gains profit when it’s free to use. Well, you are right, zoom is free to use as it runs on a freemium business model, in this way the app gives its initial services free of cost then charges for the upgrade version.
Story of zoom, How it all started..
In 1997, Eric Yuan came to the US from China. He joined WebEx, as one of the twenty software engineers who initially joined the company. In 2017, Eric became VP when Cisco took over WebEx. While working in WebEx Eric noticed that customers were unhappy with WebEx as whenever a user logged into WebEx the system identifies the user product which eventually takes time and slows the process. The app doesn’t have the screen sharing option which adds onto the difficulty when it comes to conferences or meetings related to work.
The app gives poor video and audio quality when many people are logged in to one conference. To fix this issue Eric proposed a new idea of video conference to its company which was rejected by the company. So to create his own smartphone-friendly video calling app he left Cisco followed by other 40 Cisco engineers. Initially, Eric started the company by the name of Saasbee.
However like any other startup Eric also struggled to get investment for his company from Venture Capital firms. As there were already strong companies like Google, Skype and Cisco in the market the firm denied investing in Saasbee. Luckily due to Eric’s high capabilities and in-depth knowledge of technology the former WebEx CEO Subrah Iya trusted Eric and invested $3 million.
After one year Eric renamed the company Zoom video Communication, Inc. Primarily Zoom allowed 15 people in conference video calls under its beta version. But the app faced difficulties due to several factors such as complicated proprietary architectures, substandard technology, and expensive deployment. However, the app improvised its features.
In 2013 by launching its first product the app raised $6 million and allowed 25 people to be part of the conference at the same time. Zoom can be easily installed to desktop, mobile or tablet. It allows 100 participants to join the call for free. Zoom is easy to use as compared to other video calling apps. It has great interoperability with third-party applications and systems.
How to start a meeting on zoom?
If you are new to zoom you can start a meeting by following the below steps
- Install the Zoom app from the Apple Store or Google Play Store.
- Open the app and Sign Up Free.
- Now Sign in with your email id and password of your Google or Facebook account.
- Now if you are signed in you can start a new meeting by selecting Start with video>new meeting.
- Or if you want to join a meeting, simply click on Join a meeting.
How does Zoom gain profit?
Zoom makes money through its premium packages. In premium packages, it allows more participants, more time and advanced features. It allows a meeting with 10,000 participants at the same time. It has many premium versions of the app.
Zoom’s freemium business plan allows video calling of 100 participants for 40 minutes of time duration for free. It makes money through premium offers and services.
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