Zoom provides a suite of simple, affordable, powerful, secure, and interoperable communication and collaboration tools. As of this writing, the companyâs self-purposed mission is to make video communications frictionless.
Discovering Zoomâs origins
In August 1997, Eric Yuan began working as a software engineer at Webex â one of the first enterprise-videoconferencing companies. Yuan grew his team from ten engineers to more than 800 across the globe. To paraphrase Ron Burgundy of Anchorman fame, Webex became kind of a big deal. On March 15, 2007, Cisco Systems acquired the company in a deal worth $3.2 billion.
At Cisco, Yuan rose to the level of VP of Engineering â a key role at a tech juggernaut. As part of his job, he spent a good chunk of his time talking to Webex enterprise customers about the videoconferencing program. To put it bluntly, many businesses disliked Webexâs complexity and general clunkiness. (Apropos of nothing, I felt the same way back then.)
After a few years, Yuan began to doubt whether Cisco would be able to improve Webex as much as its customers were demanding. To boot, other software vendors were starting to catch up. Yuan questioned whether Ciscoâs management would invest the requisite time and resources required to build a new, better generation of videoconferencing products â one that could easily scale up and down as needed thanks to the rise of cloud computing.
Yuan wasnât guessing; he exactly knew what enterprise customers needed. He envisioned a single, modern app that would seamlessly work on any device: laptop, computer, tablet, and smartphone. Because of his background, Yuan realized that minor tweaks to Webexâs legacy code base would not suffice. Rather, undertaking such an endeavor would require a ground-up product rebuild.
Yuan knew that transforming Webex at Cisco would require him to fight many bruising internal battles. After several relatively enjoyable post-acquisition years, the politicking was starting to wear Yuan down. As he told NBC in August 2019, âEvery day, when I woke up, I was not very happy. I even did not want to go to the office to work.â (Visit cnb.cx/zfd-123 to read the article.)
Yuan predictably left Cisco in June 2011 and took 40 talented engineers with him. Later that month, he founded Zoom Video Communications, Inc. He wanted to refine a concept that he first conceived during the 1990s as a college student in China. Back then, Yuan had to commute ten hours to his then-girlfriend, now his wife. (Read the entire interview at bit.ly/zfd-eric.)
The company launched its flagship Meetings & Chat service in January 2013. Its target customers remained the same from Yuanâs Webex and Cisco days: other businesses. By May 2013, more than 1 million people used Zoom products. In March 2019, Zoom officially filed to go public on the NASDAQ. April 18, 2019, marked its first day of trading.
Understanding what Zoom does
Zoomâs tools help individuals, formal and informal groups, departments, and even entire organizations communicate and collaborate better. In this way, Zoom falls under the umbrella of technologies often labeled as Unified Communications (UC). The term first gained popularity in the mid-1990s. (Iâm happy to report that I was there.) In a nutshell, UC describes a collection of integrated, enterprise-grade communication services. Specific examples include
- Instant messaging (IM): Also known as chat.
- Presence information: Status indicators that conveys oneâs availability to communicate.
- Voice: This bucket includes calls or, more precisely, Internet Protocol (IP) telephony.
- Audio, web, and video conferencing: The ability to hold different types of calls with large groups of people.
- Desktop sharing: The ability to instantly see what your peer is doing.
- Data sharing: Interactive whiteboards, annotation, and the like.
- Unified messaging: Integrated voicemail, email, and fax.
You may not have heard of UC before now. Again, though, itâs not exactly new. In fact, the idea of using the web to do things such as make audio and video calls is almost as old as the web itself.
The following sidebar explains a bit of history behind some of UCâs technical underpinnings. Make no mistake: These pillars remain critical today even if they run seamlessly in the background. Feel free to skip the nearby sidebar, however, if you consider it too much information â or TMI, as the kids say today.