Fighting resumes as “siege” Zoom

If you knew in advance that security vulnerabilities would be exposed, let customers give up, beaten by opponents, or even by politicians, Zoom will not grow so high-profile? The competition is so intense that you simply can’t ignore its existence. On May 19th severalmedia reported that Zoom had stopped registering individual users in mainland China and banned individual accounts in mainland China from initiating/presiding over meetings, allowing only participation. Corporate accounts can still be registered, but need to be completed through Zoom’s authorized sales representative in the Mainland.

While Zoom does not comment on “strategic changes” in the Chinese market, apparently careful observers have found that Zoom is no longer the “innocent” Zoom.

The fighting is back.

The cloud video conferencing market has never been more lively than the first half of 2020.

In a sign that mobile data analytics platform SevenMac data shows that entertainment apps such as YouTube, which have long dominated China, the United States and other regions, have been gradually replaced by co-working tools such as Zoom, Google Meet, Nails and Tencent Conferences.

The latter’s user downloads and activity showed an explosive increase during the outbreak.

Public information shows that in March alone, The number of Day Zoom live users jumped from 10 million in December 2019 to 300 million (later renamed 300 million Zoom participants a day); WebEx users reached a record 324 million, more than doubling in the Americas; Microsoft Teams active users, 775 per cent in the affected areas of Italy, and more than 34 million in China alone; More than 183,000 educational institutions worldwide use Teams.

Chinese manufacturers nailed the endorsement of UNESCO, Tencent also launched a video conferencing strategy for the United Nations, Fukuda Automobile asked for the full opening of WeLink, less than a week, covering all 12,000 internal managers. For a time, almost all products with/integrated video conferencing capabilities began to enter, and even Xinhua III, which specializes in hardware and provides servers, and Wave released the corresponding cloud video solutions.

I do not know that this move hit the key to foreign technology manufacturers, with the outbreak of the global evolution of demand, in April, Microsoft will be its co-working software Teams (formerly Skype For Business), for new users in the global market free of charge for six months of intelligent remote conferencing services. In May, Facebook launched its video conferencing tool, Messenger Rooms, and google said it would extend the Hangouts Meet free service until September and launch a new brand, Google Meet, after the integration of its Hangouts and Google Duo.

Cloud video conferencing has been written into the 2020 strategic plan table by technology companies, because of the surge in demand for teleconferencing, tele-classrooms, online medical care, etc., forcing enterprises to work together quickly and rapidly.

All this bodes well for the storm to come and the market landscape of video conferencing to be rewritten in this battle.

So, in this video conferencing industry of the whole army attack, break into the new blue sea unguarded, or the larger traditional manufacturers rear hinterland?

Who’s on the offensive?

About 50 percent of global businesses needed to deploy cloud video in 2016, according to Wainhouse, a third-party research firm. The market for traditional dedicated hardware video conferencing is already saturated, and cloud-based video conferencing delivery models are increasingly recognized by businesses and users.

“Now all traditional video vendors know that this is an irreversible direction, and in a few years, including Polycom, Cisco, Huawei will push cloud video. “

At a media interview in 2017, a service provider with the main cloud video hard and hard one said.

Until now, foreign Zoom, domestic nail, Tencent conference is still playing the role of chaser, attacker.

On the one hand, hardware costs, MCU installation costs, late expansion costs, so that the general IT budget of enterprises can only give up this part of the cost, take a lower cost, low security communications services; In contrast, cloud-based deployment and delivery models give video conferencing itself a high degree of flexibility and cost-effectiveness.

Cloud video conferencing products market share has indeed been further penetrated in recent years, most notably, they began to frequently win the government, health care, education and other industries.

For example, in 2019 Zoom offers super-million customer orders to medical giants Johnson and Johnson and VMware.

As a bellwether for judging the technological maturity of enterprise products, Gartner’s latest cloud video conferencing magic quadrant, released in September 2019, zoom edged into the leader’s quadrant for the first time, almost matching Cisco, Microsoft and, closely followed by cloud video innovators such as Blue Jeans, which was acquired by Verizon in April. Only three or four years ago, Cisco, Adobe and other vendors were firmly in the head position.

In other words, the market landscape of traditional hardware video conferencing providers, previously represented by Cisco, was broken by Dark Horse Zoom.

Clearly, Zoom is the brightest unicorn in 2019 with double-growth in its share price. Zoom’s share price has bucked the trend, and its CEO, Yuan Zheng, was once named on Forbes’ 2020 List of the World’s Billionaires.

What’s more, an outbreak not only accelerated the pace of cloud video replacement with traditional video conferencing systems, but also allowed more cloud video conferencing providers to enter.

The gun shoots the first bird.

Who will benefit most in this battle? We don’t know yet, but Zoom was the first to lose, but it was other enemies, as well as the knife-ups. After Zoom’s security issues came to light, webEx, the old rival, assured customers that their products would be safer.

Let’s take a brief look at the context of Zoom security issues. In this story, Zoom is the subject of a siege.

Since late March, Zoom has been exposed to security vulnerabilities: allowing uninvited users to enter meeting rooms, sharing private information with third-party apps, falsely claiming end-to-end encryption, hacking the dark web selling Zoom account passwords for a penny to buy 71 Zoom accounts…

In fact, Zoom’s security vulnerabilities seem to have a long history. Last July, Zoom was in a heated argument over users uninstalling the application and preventing them from removing Web servers from their Macs.

According to internal sources, IBM, which first purchased the cloud video conferencing system, evaluated WebEx, Zoom, etc., but Zoom was left out because it failed a security review.

Dropbox, a partner in the cloud storage software, began using the Vulnerability Bounty program as early as 2018 to get hackers to help identify Zoom vulnerabilities.

Just as Zoom CEO Yuan Zheng later apologized in a blog post for “not meeting the standards” of security issues and promised to address them, the apology came a little late.

As CEO, I really screwed up, we need to win back their trust, and that shouldn’t have happened.

SpaceX has reportedly banned the use of Zoom, which was once one of Space X’s biggest customers but also prohibits employees from using Zoom in work scenes, and Zoom was even told by House Speaker Nancy Pelosi that “Zoom is a ‘Chinese entity’ and we have been told not to trust its security.” “

After the outbreak, IBM moved all 350,000 of its employees to Slack, making it the largest single customer in Slack’s history. Slack integrates hundreds of mainstream efficiency tools such as IM, file sharing, video chat, and more.

Zoom, who was supposed to be the attacker’s character, was instantly hanged.

The spoiler?

The isolation factor of the outbreak has made the video conferencing industry more popular than ever before, but the market growth rate of cloud video conferencing has slowed in 2019, and even the size of the market is not as large as expected.

The global video conferencing market expands at a cagr of 7% a year, reaching a market size of only $50.9 billion by 2018, according to the Global Video Conferencing Market Research Report published by research firm Frost and Sullivan in 2018.

The outbreak has educated cloud video users around the world, but it doesn’t mean that IT service providers can escape the negative effects of the outbreak in the short term. Especially for startups, one of the conditions behind the short-term user surge is actually a free strategy.

No one knows, after the outbreak will not leave customers, but the cloud server expansion costs spent during the outbreak, but it is really present in the ledger. Internet tech giants, by contrast, don’t pay particular attention to the issue, which is fraught with uncertainty in the cloud video conferencing market, which is already in the Red Sea.

Although many vendors that provide cloud service capabilities have since expressed the uniqueness of their free-to-air policies during the outbreak, there is no doubt that service to large enterprises with IT pay ability and willingness to pay is the key to this wave of vendors aiming for.

From businesses to government agencies, from office workers to school students, cloud video conferencing demand once again broke out behind, it can be seen that this is no longer a video conferencing company’s war. First saw the giant company into the cloud video conferencing news, really surprised, said earlier, the cloud video conferencing market ceiling as early as two years ago has slowed down, not so much to compete for a top video conferencing market, it is better to the video conferencing scene at this time the ceiling of the video conferencing scene raised.

According to Caixin previously reported that the cloud services industry said that Huawei is now spending a lot of effort with China Telecom’s provincial companies to negotiate, hoping that through the power of telecommunications, weLink package and market to large and medium-sized institutions.

From this point of view, compared with the entrepreneurs to take orders for three or four-line government office demand, domestic Polycom, Huawei is taking advantage of the previous accumulation in communications equipment manufacturing, through the channels of telecommunications operators to quickly seize greater market share. After all, the control of the government and big customers by telecommunications operators is still hard to shake in the short term.

For example, during the special summit of G20 leaders, perhaps because of security and stability, the dedicated network-specific scheme was still being used.

Tencent Yun Qianmin has mentioned that China’s video conferencing boom was the SARS period in 2003, since then, major companies and governments have been on the traditional hardware video system, Polycom, Huawei and ZTE and other enterprises to become the beneficiaries of that round.

So the new crown outbreak in 2020 has confirmed the effectiveness of distributed cloud services, represented by videoconferencing, and the beneficiaries of this time seem obvious.

Back at the beginning of the article, Facebook and Google were trying to integrate the original video conferencing service capabilities through the outbreak, but rather, they were a long-standing service capability in the co-working scene. In early 2019, Facebook said it would consolidate its three apps, Facebook Messenger, Instagram and WhatsApp, in the hope of connecting the three app underlying data in 2020 so users could communicate across platforms.

Zooming in on the entire co-working ecosystem, and big guys like Slack and WhatsApp, video conferencing essentially solves the problem of communication costs and efficiency. Video conferencing is still a single point of functional ity, and without an outbreak, Zoom would need to integrate with platforms such as Slack.

Similarly, the Chinese market’s video conferencing products will inevitably be integrated into the ecosystem of co-working, from a simple software provider to a provider of collaborative products, solutions and cloud services. Just slightly different, like Nail will choose to do some SaaS applications that they are good at, but that doesn’t seem to affect other businesses launching Alibaba Cloud video conferencing.

The giant’s entry is destined to accelerate the trend of traffic tilting toward the head, leaving The Zooms with the “28 Rule” for traffic distribution.

Will Zoom eventually integrate into an ecological (acquired)? Let’s end up making a bold guess.