Zoom Video Communications Inc. has faced challenges in the post-lockdown era due to a gradual return to work and fierce competition from Microsoft and Google. This has resulted in suppressed Zoom shares, as compared to the broader S&P 500 index.
At their annual conference, Zoom announced the launch of Zoom Docs, an advanced word-processing application aimed at rivaling Microsoft Teams and Google Docs. This move comes as a response to the success of the communication suites offered by Microsoft and Google, which have been eroding Zoom's videoconferencing business.
Zoom Docs comes equipped with AI capabilities that enable users to draft, edit, summarize, change tones, and include content from meeting discussions. One of its key benefits is the ease of collaboration within current Zoom products, eliminating the need for toggling between tabs or apps.
According to Kelly Steckelberg, Zoom's Chief Financial Officer, Zoom Docs expands on their vision of being a platform that facilitates productivity throughout the workday.
By introducing Zoom Docs, Zoom has positioned itself strongly against Microsoft and Google. Both competitors have been integrating AI features into their document applications, such as Google Docs and Microsoft Word.
The collaborative applications market, including web conferencing and virtual-event tools, is gaining importance as more enterprises adopt AI technology. Zoom, with an 11% market share last year, lags behind Microsoft (approximately 30%) and Google (13.5%), according to market researcher IDC.
As of the end of the second quarter, Zoom reported a growth of 7% in their enterprise customer base, with a total of 218,100 customers.