Greg Tomb, President of Zoom Video Communications Inc., said the collaboration software business has held up despite competition and a wave of layoffs.
The video conferencing company sells software to industries that have been hit by waves of layoffs. But because most of the contracts are long-term, the job cuts haven’t affected Zoom, Tomb said in an interview with Bloomberg in Davos, Switzerland.
“It doesn’t mean they won’t make adjustments here or there when it comes time for the renewal, but there hasn’t been a huge impact.” said.
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Tomb recognized that the large enterprise segment can be a competitive space as other vendors offer collaboration tools for free. For example, Microsoft Corp.’s Teams has become more widely adopted in recent years.
“There are probably some situations where companies are trying to be super cost-conscious and are willing to provide an inferior product—in terms of functionality and capability—because it’s free to their employees,” Tomb said. Even so, he said, companies that use Zoom rarely leave the platform.
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After gaining millions of users at the height of the pandemic, Zoom is now trying to reverse slowing growth by expanding its tools for business. At its annual user conference in November, the company unveiled the email and calendar services, which it hopes will keep more workers on the platform.
Zoom’s biggest opportunity is getting existing customers, 70% of the Fortune 500, to use features beyond video calling, Tomb said. “Most of our customers don’t know about or take advantage of all of our offerings,” including cloud phone or contact center services, he said.
Tomb has been in the role since June and previously held leadership positions at Google and SAP SE.
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