Zoom to Acquire Five9
Zoom Video Communications announced it has entered into a definitive agreement to acquire Five9, Inc., a prominent CCaaS vendor, for approximately $14.7 billion.
The acquisition is expected to help enhance Zoom’s presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the $24 billion contact center market. Five9 provides a scalable cloud contact center solution with a suite of applications that allows management and optimization of customer interactions across many different channels.
“We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers,” said Zoom CEO Eric S. Yuan. “Enterprises communicate with their customers primarily through the contact center, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers.”
“Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers,” said Rowan Trollope, Chief Executive Officer of Five9. “Joining forces with Zoom will provide Five9’s business customers access to best-of-breed solutions, particularly Zoom Phone, that will enable them to realize more value and deliver real results for their business.”
Zoom Phone is a cloud-based phone system that offers a digital alternative to legacy phone offerings.
Following the close of the transaction, Five9 will be an operating unit of Zoom and Rowan Trollope will become a President of Zoom and continue as CEO of Five9, reporting to Eric Yuan.
The combination also offers both companies significant cross-selling opportunities to each other’s respective customer bases, as well as with their respective networks of channel partners.
Study: Managed Services Market to be Worth $354.8 billion by 2026
The global Managed Services market size is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.9%, reaching $354.8 billion by 2026; up from $242.9 billion in 2021.
This is according to a research report “Managed Services Market with COVID-19 Impact Analysis,” recently published by MarketsandMarkets,
The report also says that enterprises across the globe are heavily investing in their IT infrastructure to maintain their competitive position and attain operational excellence. As enterprises are adopting highly complex technologies regardless of their size, they turn to MSPs to manage their IT infrastructure, thus delivering services faster and more efficiently. These technologies are forcing enterprises to redefine their business strategies and emphasize information security.
Lack of IT skilled professionals, cost reduction and IT budget constraints, need for cloud-based managed services, high security monitoring to avoid high data loss and downtime cost, and enhanced business productivity are the major factors expected to drive the growth of the managed services market.
According to the survey, 60% of enterprises reported that the IT challenges are becoming more acute, and IT is getting harder to manage, while ~90% of the IT enterprises report that their cloud skills gaps have nearly doubled in the past three years (2016–2019), in one or more cloud disciplines, compared with just 50% in 2016.
Nearly 70% of the enterprises are reaching out to MSPs to fill cloud IT skill gaps. By bypassing the need for additional staffing costs, enterprises have experienced a 42% savings in IT budget.
The objective of these managed services is to enhance and bolster different business verticals so that productivity can be improved, and organizations can focus on their core businesses.
Nitro Launches New Partner Acceleration Program and Portal
Nitro Software, a San Francisco-based document productivity software company, has announced a series of updates to its Partner Acceleration Program and the launch of its new portal.
The newly introduced Partner Acceleration Program offers an updated discount and margin structure for channel partners, along with support from the Nitro team. Other program components include campaign incentives, sales and marketing support, partner enablement tools, and sales certifications.
“We are committed to building lasting partnerships across our channel ecosystem and leveraging our partners in everything we do at Nitro,” said Simon Taylor, Vice President of Global Channel and Alliances at Nitro. “By investing in our new Partner Acceleration Program, we can deliver a wide range of compelling benefits to both existing and future partners. This is an exciting opportunity for resellers, distributors and alliances who are focused on helping organizations maximize our document productivity solutions.”
Nitro is also investing in its alliance and integrator relationships to open new ways of collaborating on document productivity and digital transformation.
These changes are expected to enhance Nitro’s partner ecosystem and allow the company to extend its position in PDF productivity and eSignature solutions.