Star Trek was a harbinger to a great many things that have come to pass. The little handheld communicators that look like modern cellphones. The little tablets that look like, well tablets.
When Khan hails Kirk how do they communicate? He comes up on a big screen and they talk smack. This was the prevailing way beings communicated throughout the show and movies. It is the Norm.
This norm is coming to pass as well. How will beings communicate in 5, 10, or 20 years and from an enterprise perspective whom is ushering it in?
It’s been my position for some time that if we are only looking at Zoom from being only a video conferencing company we are missing the longer story. Nearly every industry will see some or even much level of communication ushering in a video component to the strategy. There is a whole economy revolved around video that has not been realized. The TAM, $43B that Zoom references from the IDC Unified Communications as a Service(UCaaS) is minuscule to where this will eventually reach. Granted Zoom doesn’t reach that $43B because it includes all things UCaaS like hardware and the sort.
This interview with Zoom CFO left my jaw dragging on the floor. I will only paste a snip of the whole. There is much much more in this link:
https://www.cmlviz.com/2019/12/30/ZM/-zoom-cfo-sees-a-much-b…
CML: How should we think about the size of your market. The number $43 billion was mentioned on the call, for the “unified communications as a service” market…
KS: $43 billion is the right figure, but there is a bigger opportunity.
UCaaS, is what we address today: video voice chat, messaging. The thing about that TAM is that we also think there is an even bigger opportunity.
Every day we see people who find innovative new ways to use Zoom. Take healthcare, a company called Bayada Home Health. They did a testimonial for us in our roadshow. They provide home healthcare.
They use Zoom to reach clients in their home. At first, they started using Zoom to consult with them about a medication they are taking. Then they started extending that further to medical consultation.
Previously, they would have loaded the person into an ambulance to take them to the hospital. Now, using Zoom, they can do that consultation right in their home. They couldn’t have done that before, you need to be HIPAA-complaint, secure, and private, and be able to operate over different network bandwidths, and cell phone devices, and laptops.
Zoom is changing the way that healthcare is provided in this country. That’s a really powerful statement not yet reflected in the way people think about us.
That is a BOLD statement.
Healthcare, Education, sales forces, etc. The limit is innovators’ imaginations. And Zoom is leading this movement as a do it yourself platform that offers Video building blocks that doesn’t require any level of equipment or bandwidth other than commonly used devices and internet services. Meaning the reach is everyone and everywhere for every industry.
Interestingly, as if on cue, a seeking article hit piece on TDOC also just dropped and Zoom plays a major role in the thesis:
https://seekingalpha.com/article/4314623-teladoc-will-face-i…
Virtual healthcare is a logical step to cut costs and improve services in the behemoth that is US healthcare, hence the market has excellent growth prospects.
According to a Fortune Business Insight study:
The global virtual reality in the healthcare market size stood at USD 1.56 Billion in 2018 is expected to reach USD 30.40 Billion by 2026, exhibiting a CAGR of 42.4%.
The article discusses several services Zoom has for a do-it-yourself platform for healthcare providers to provide their own tele-medicine services. Of which there are many examples already in use. This contrasts to Teledoc which is the whole shibang including their own network of doctors. For Zoom the market is EVERY healthcare provider from individual doctors to clinics to major hospitals.
Zoom sees its videoconferencing and additional technologies as a substantial growth market taking its already considerable TAM well beyond that of UCaaS. It has developed a string of solutions for the industry:
Basically, this more or less off-the-shelf technology enables medical facilities to embark on DIY virtual healthcare.
That is one industry. The addressable industry is every industry.
Darth