In today’s interconnected world, Zoom has become synonymous with virtual meetings. It powers everything from remote work and online education to family catch-ups and international webinars. While its meteoric rise during the COVID-19 pandemic made it a household name, few realize that Zoom’s journey began as a relatively unassuming startup.
Where did it all begin?
Zoom was launched in 2011 by Eric Yuan. He previously worked at Cisco on a video conferencing product but found the tools there too complex and slow. Motivated to create a platform that was fast and easy to use, he set out to build something better.
The startup initially raised around $3 million in funding. To ensure stability, they utilized Amazon Web Services’ cloud infrastructure.
What made Zoom stand out?
Zoom focused heavily on delivering high-quality video and audio. Even with weak internet connections, the video and sound remained impressively clear. No complex setups or downloads were required. Its simple interface made it particularly user-friendly for team meetings and online classes.
In addition, Zoom offered more affordable pricing than its competitors.
Financial growth
In 2019, Zoom went public with an IPO price of around $36 per share, reaching a valuation of several billion dollars. By 2020, as the pandemic unfolded, its revenue soared to $2.65 billion — nearly triple the amount from the previous year.
At the start of the pandemic, the number of Zoom users surged from 10 million to over 300 million.
Zoom’s global expansion
While Zoom initially gained traction in the U.S., it quickly spread worldwide. Today, people in over 180 countries use Zoom. The company launched versions of its platform in multiple languages, deployed local servers, and established international business partnerships.
This expansion allowed Zoom to deliver fast and reliable services to users across different regions. The company also broadened its outreach to corporate and educational sectors.
Who are Zoom’s competitors?
Zoom’s main competitors include Microsoft Teams, Google Meet, Cisco Webex, and Skype. Microsoft Teams is especially preferred by companies already integrated into the Office 365 ecosystem. Google Meet, in turn, is closely tied to other Google services.
Zoom distinguishes itself with a user-friendly interface, high-quality video, and ease of use—reasons why many users continue to prefer it.
What challenges did it face?
With the rapid increase in users, Zoom encountered several issues. The most significant was related to security and privacy. Incidents of “Zoombombing”—where unauthorized individuals disrupted meetings—led to concerns about safety.
As a result, Zoom made security a top priority. Measures such as mandatory passwords for meetings, stronger user identification, and end-to-end encryption were introduced. The company also revised some of its privacy policies after public criticism.
Conclusion
Though it started as a small startup, Zoom provided users with a convenient and high-quality service, especially during the pandemic, which accelerated its rise to global fame. The company has since expanded worldwide and maintained its position in the market despite fierce competition.
Prepared by: Mahliyo Hamid
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