The cloud is clearly all the rage these days; serving as an ambassador to a new era of computing, communications and technology as a whole, it is a key piece in the digital transformation puzzle. From the data center to the conference room, the effects of this evolution are felt across industry, and an arena leveraging this burgeoning technology is communications – more specifically, video conferencing – and the future is now.
This week, cloud video conferencing service Zoom announced a $100 million round D funding coming from Sequoia.
“We had been watching the video conferencing space for many years because we were convinced that it was a huge market primed for innovation. But we couldn’t find a product that customers loved to use. That changed when our portfolio companies started raving to us about Zoom,” a Sequoia spokesperson told TechCrunch in a recent interview.
Zoom’s billion-dollar evaluation adds the expectations and moniker of unicorn. The company has been busy bringing in funds to develop its innovative solution, and per Zoom CEO Eric S. Yuan – who helped get WebEx off the ground before selling it to Cisco (News - Alert) for more than $3 billion in 2007 – Sequoia came to him with interest in the solution. Yuan shot for the moon, requesting a large investment to have money on hand for development – like the recent update giving customers and third parties to develop applications on top of the Zoom platform.
The cloud-based video conferencing solution is interesting on several levels; the one I’m most keen on is Yuan’s regret over selling WebEx to Cisco. Why? Becomes it feels a lot like unfinished business, if you will. A situation where Yuan can now play out his vision for the product (platform) and see where it goes, there’s was a fundamental disconnect with Cisco, which resulted in major headaches and a misused/underutilized opportunity.
Zoom is the product of customer feedback, industry expertise and the bleeding edge of innovation…stay tuned, as there is certainly more to come.
Edited by Alicia Young