Even before COVID-19 forced businesses worldwide to enable their employees to work from home, video was growing in importance. The demand for the ability to work anywhere was growing as businesses embraced remote working and video conferencing was one of the driving forces behind this. The industry has put a huge emphasis on video collaboration and over the past year Cisco, Microsoft, Zoom, 8×8, Fuze and others have built or bought capabilities to enable this remote working by putting video at the forefront of their collaboration portfolio. Cavell’s latest Enterprise research showed that Video Conferencing was the most likely service that enterprises were looking to adopt within the next two years.
The solution enables RingCentral’s users to transition between messaging, voice calling, video conferencing and screen sharing all within a single platform across multiple devices. Built on WebRTC, it can also run across browsers without downloads. The launch of RCV adds video as the third channel that users can communicate through, adding to their expertise on voice and messaging (Glip), all integrated into RingCentral Office. Deeper integrations into their own comms stack can only mean better experience for their customers and RingCentral are focusing heavily on their integration platform as well – their announcement on their Microsoft Teams integration earlier last month will also be beneficial to their long term prospects as that service grows in popularity.
RingCentral has historically been working with Zoom (as had many other providers who had not built their own) which enabled them to get a product to market quickly and to focus on other growth areas. What will be interesting is how the relationship with Zoom progresses moving forward. Over the past month, Zoom have had huge success in building their brand with the service become almost ubiquitous both in peoples personal and private lives (receiving a Zoom bridge from my mother was unexpected!). Their launch of Zoom Phone in 2019, going after the enterprise telephony market, could be seen as a clear competitor to RingCentral if they can leverage their existing customer base to take their phone service.
RingCentral are currently in a multi-year contract with Zoom that the company will fulfil and continue to offer Zoom to existing customers with no planned migration of Zoom users over to RVC. They will however, sell RCV to new customers which will help their margin in the long run and we expect that RCV will become the defacto video service for their customers in the long run.
One key part of the communications stack that RingCentral still works with a third party is in the CCaaS space with their relationship with InContact. After building their own video capabilities, it will be interesting to see what the long-term future is for contact center and whether this is an area where RingCentral will look to build or buy capabilities in the future. What is clear is that video is here to stay and providers need to look at how they can bring this into their portfolio if they are going to remain relevant now, and in the future.