The internet lit up with buzz regarding the acquisition of Five9 by Zoom for $14.7B. I heard many different opinions and projections.
Did anyone feel any anxiety about what this might mean for their business?
If you did, you are not alone. But there is good news on the forefront!
I asked a few industry experts their opinion on the recent trend of acquisitions in our space.
“Do you feel the glass is half full or half empty?”
We’ll hear from:
Dan Rosenrauch, Viirtue – https://www.viirtue.com/
Ken Adams, Brightlink – https://www.brightlink.com/
Jeff Dworkin, CVA – https://cloudvoicealliance.com/
Olivia Scott, Technology To Go – https://www.technologytogo.co.uk/
Note: I did ask some of my other good friends and partners but did not hear back from them.
So be encouraged!!! The glass is not only half full … it’s overflowing with opportunity!
Dan Rosenrauch, Viirtue
The acquisition of Five9 by Zoom is not unexpected with the tremendous amount of consolidation going on in our space. We believe consolidation of more monolithic companies actually provides an edge for the small-medium sized agile service provider. Both of these vendors tend to be on the expensive side, creating higher margins for our service providers and their similar offerings. Additionally, we see service providers that take a digitized approach to market tend to win more business due to their boutique delivery approach that monolithic companies generally cannot provide at scale. We at Viirtue feel this consolidation, and others like it, only compound that added value.
Ken Adams, Brightlink
The merger of Zoom and Five9 is interesting in that it tells everyone they want to compete against the likes of Cisco and Genesys® in the enterprise call center space and I think it is a great merger opportunity.
CPaaS will always have a place to work with UCaaS/CCaaS platforms as they still need DID resources and the features associated with DIDs like Message enabling the DIDs to the UCaaS/CCaaS platform.
I don’t see these types of mergers as a threat for CPaaS by any means, in fact I see it as a new opportunity for CPaaS providers to gain access to potential markets they may not have had access to previously.
Zoom and Five9 has to work with someone like Brightlink, to port numbers, source new numbers and for their customers calling and messaging traffic to traverse from one network to another.
That is where CPaaS backed by a world class carrier network comes into play.
Jeff Dworkin, CVA
Acquisition and Consolidation are a double-edged sword from the viewpoint of the independent provider. On the positive side, as more prominent players acquire and brand UCaaS providers, their brand awareness exposes UCaaS to a larger audience. They can also financially handle educating new markets about the service.
On the negative side, the independent provider is now competing against another big brand.
The independent provider needs to continue to upsell their ability to deliver personalized service. That way, they take advantage of the market awareness and education that the big players provide.
Olivia Scott, TTG – UK
My thoughts on the acquisition of Five9 by Zoom is that it’s not very surprising that Zoom would want to break into the UCaaS area, it tightens up their product spread. They were already offering Zoom Phone via Five9. It comes with a risk, although my personal opinion is that it will do okay in the US market.
We have already seen an effective (almost stealth) emergence of a similar model with Miscrosoft Teams, which now offers voice capabilities, many providers (including ourselves) are excited about the integrations into Teams with our existing Hosted PBX solutions as this will add another layer to the UCaaS solution, that’s always been a little lacking in Video calling capabilities (which as you know is a big part of how business is conducted in the post-covid world).
The consumers are familiar with and comfortable using Teams or Zoom for these activities – so any UCaaS product that can integrate with this is only going to benefit from that.
If you are in Telco and you aren’t offering a UCaaS as yet then you need to begin to think about it, it’s the future and the pandemic accelerated the process by a decade or two – which is what we are seeing in the UK with the Big Switch Off of all analogue phone lines by the end of 2025.
My goal with this post was to encourage you regarding all the changes in our industry that we’ve experienced lately. Survey says: Opportunity abounds!
A big thank you to Dan Rosenrauch from Viirtue, Ken Davis from Brightlink, Jeff Dworkin from CVA and Olivia Scott from Technology To Go for taking the time to share their views. We appreciate you!
If you want to hear more expert opinions about subjects that matter to you, please let me know! I have been thinking about doing a CEO Corner or something … CEO’s sharing best practices, ideas, fails, just trading stories to the benefit of others.
Would love your feedback on that.