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Zoom and Amazon’s Prolong their Collaboration, Wish to take Online Communication to Great Heights

Zoom and Amazon’s prolong their collaboration; wish to take online communication to great heights

Although the coronavirus pandemic has swept the entire world in 2020, it has been the other way for Zoom. Undoubtedly, on a global level, most people relied on the video communication application to conduct and participate in meetings at both formal and informal levels. Owing to its high demand, Zoom recorded revenue growth of more than 300% during the previous quarter. Ironically, this was the second time the video communications firm reported a revenue growth above 300%.

As far as Zoom users are concerned, about 433,700 users signed up for the application during the quarter, which is almost a 17% jump compared to the previous quarter. Zoom has to ensure that it has very sturdy and resilient support for handling its back-end operations to handle such a huge customer load. Zoom has entered into a deal with Amazon Web Services (AWS) to support the same cause, offering much-needed cloud support to the organization.

Thanks to this latest deal between Zoom and AWS, there has been an extension of Zoom and Amazon’s partnership. It looks like now, AWS would be more focused on increasing Zoom’s back-end operations’ scope to become capable enough of managing so many customers on its platform. Right from April 2020, from the time the pandemic began shaking the entire world, Zoom has witnessed a spike in its calls. In fact, from April onwards, Zoom has been recording more than 300 million calls, which is a very big jump. Last December, the platform had recorded just about 10 million calls.

AWS would fulfill the complete cloud-based framework and all the necessary safety measures required by Zoom. Not only this, all kinds of assistance required to provide support for the customers would also be taken care of by AWS. For this purpose, AWS would be providing the Zoom team with more than 1000 desktops, all of them with good specifications.

Going by the success which Zoom has recorded this year, CEO of the organization Eric S. Yuan has expressed that he would like to continue the existing partnership with Amazon.

The latest partnership would witness both the companies collaborating in the fields where each one excels. That was proved when Zoom notified and confirmed its presence within devices compatible with Amazon Echo Show. Likewise, Amazon is also planning on bringing its very own Alexa services within Zoom’s meeting rooms. Going by these measures, which both these companies have incorporated, it seems like going. Further, one would get to witness many applications developed by integrating specific implementations from both these organizations.

With COVID-19 vaccine development in progress, there could be chances that Zoom’s demand may fall in 2021. Presently, Pfizer and Moderna are procuring the required approvals for the distribution of their vaccines. Although all of us here are wishing that these vaccines come out pretty soon, this may not be very good from Zoom’s business perspective. Thus, during such times, its partnership with Amazon would come in handy from a growth perspective. 

Zoom witnessed a 329% growth in its revenues during the previous quarter. However, earlier, it had reported a growth of 355%. Thus, one can see that there is a slight decrease in its growth. Moreover, the shares of the organization fell by 17%, disappointing many. And all of these things have started to occur after the announcement was made regarding the Covid-19 vaccine. That proves one thing for sure; Zoom’s success is mainly during the pandemic phase. However, Zoom cannot depend on these circumstances as the pandemic cannot last forever. One needs to see how things fall in place for Zoom after this pandemic ends for good.

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