How Does Zoom Make Money?

by Uniscoblog

Zoom has been used for the first several weeks in every student’s first online lesson. It’s been used to start every meeting, even personal ones as well.

However, how does Zoom generates money in the video conferencing market is a legitimate concern.

On Zoom, users may communicate remotely via voice, video, and video conferences in the cloud. This COVID-19 epidemic saw a lot of video conferencing between small businesses and major enterprises as well as financial institutions, educational institutions, and healthcare professionals, all of whom used Zoom Meetings to connect.

The competitive advantage of the firm is based on user-friendliness and high-quality audio and video output.

Zooming in and out of history

In 2011, Zoom, the current version, was launched. There was a test version of Zoom introduced on August 21 of that year, which was used for webinars and video calls with up to 15 people participating remotely. Model 1.0 of the software was introduced on January 25th, 2013, with a 25-person increase in the number of attendees at each conference.

By the give up of its first month, Zoom had 400,000 users, which rose to 1 million through May 2013.

On a single day in March 2020, the Zoom app was downloaded 2.13 million times in the United States alone. Zoom will have over 300 million users by April 2020.

On August 24th, 2020, Zoom had significant disruptions that lasted for many hours until the service was finally restored. San Jose, California, is home to the company’s corporate headquarters. Zoom also has offices throughout Europe, Asia, and Australia.

If you’re wondering how Zoom makes money, consider this:
Zoom is a freemium firm, which means it offers certain services for free to entice consumers and then charges them for more services.

1. Zoom Meetings


When it comes to Zoom’s main device, customers can connect with audio and video. It’s also Zoom’s most well-known and widely utilized service.

There’s also a Zoom chat feature as well as the ability to share images, audio, and video files, as well as text.

The basic design is free, but there are limitations, such as a 40-minute time limit and a maximum of 100 contributors for crew meetings.

Zoom’s Pro, Business, and Enterprise plans cater to small and medium-sized organizations, as well as major corporations. These plans include different features dependent on the size and demands of the company.

2. Zoom Room & Workspaces

It’s are constructions for convention halls that allow clients to hold Zoom video conferencing without any problems.

Zoom Room plans are also available as monthly subscriptions, with prices beginning at $49/month, similar to Zoom Meetings.

There is a cost associated with connecting additional conference rooms using the Zoom room system.

When it comes to supplying hardware equipment to its clients, Zoom has formed alliances with companies like DTEN and Aver.

Zoom receives a fee from the supplier for every hardware sale, in exchange for which Zoom advertises its products and services.

3. Zoom Video Webinars

Customers can broadcast a Zoom assembly to up to 10,000 view-only guests with this web conferencing service.

Webinars can have up to 10,000 attendees, depending on the license acquired. Organizers can share their screen, audio, and video with participants. Participants can also engage with the webinar host by chatting with him or her or by asking and answering his or her questions.

Registration might be voluntary or necessary depending on the privacy settings for webinars. Plans with 100 guests and 1 host start at $40 per month and go up to $6490-per-month with 10,000 attendees and 1 host.

4. Zoom Phone

Zoom phone is a cloud-based calling response that can be used as an add-on to the present Zoom service. Zoom Phone turns Zoom into a complete collaboration solution by imparting voice, conference, message, and video capabilities together.

After you’ve gotten to know Zoom Phone, make use of these extra features –

  • A naming system with artificial intelligence (AI) assistance and routing.
  • Have a voicemail and call recording system.
  • HD audio protection for crystal-clear conversations
  • Equipment for automatic attendants and interactive voice response systems (IVR) to route phone calls to the most qualified shops
  • Message sending and receiving
  • System for Suppressing Access

Zoom’s net income

When compared to the same period a year earlier, Zoom’s first-quarter revenue was $382.4 million, up 169 percent from the same amount.

Over the same period, there were about 265,400 clients with more than 10 workers, a 354% rise.

Zoom’s CEO and creator, Eric S. Yuan, blamed Zoom’s fast expansion for the COVID-19 problem

Is Zoom Profitable?

Zoom’s revenue model is evolving at an unanticipated rate. Even though the company initially lost money and even lost money in 2018, it made record amounts of money in 2019 and 2020. Zoom generated up to $622.7 million in revenue in 2019. By 2020, the amount will rise to $663.5 million.

How Does Zoom Maintain Its Security And Privacy?

When Zoom admits to security or privacy lapses, it’s usually a positive development. The firm has introduced numerous restrictions as part of its security initiatives, including password-protecting meetings by avoidance and introducing a waiting room tool that lets hosts decide who may attend a meeting.

Its most critical function was to provide safety tips to consumers. People frequently do things that put their security at risk because they fail to utilize passwords or do other security-related tasks.

Until 2020, Zoom did not offer end-to-end encryption to its customers. Thus, they’ll have access to all the media files. As a result, Zoom anticipates only offering end-to-end encryption to paying users by the end of May 2020. However, as of October 2020, this functionality will be available to Zoom paid and non-paid customers alike.

Zoom, on the other hand, is still finding out how to deal with its privacy issues. Throughout the meetings, there were several complaints of frauds, fraud calls, and people selling their personal information. The functionality has to be upgraded by Zoom to ensure its security.

Voila! Now you know in and out about zoom. Next time you use it, do share it with your friends and family!


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