No. of Recommendations: 1


You said that you still don’t know what Zoom‘s moat is. In a recent post from me, I argued that Zoom might have the premium valuation not just for their numbers but also because the market sees the potential for network effects, which would be a great competitive advantage/moat. Maybe my post got a bit lost in the volume of new messages on the board, but I‘m still interested what others on the board think about the potential network effect for Zoom and the implications on valuation that might have.

Thanks again and all the best!
Niki


Niki, my post earlier did not include the link to the article in IBD which I liked very much and would like to know if these quotes were from a bigger interview or just talking directly with IBD.

https://www.investors.com/news/technology/zoom-stock-ipo-col...


In regards to Zoom, it's built from the ground up to be video first and cloud based, allowing them to integrate with collaborative 3rd party software.

There is a concern, though, that Cisco or Microsoft could upgrade their videoconferencing products and match Zoom's user experience.

Yuan says he isn't worried about Cisco or Microsoft catching up. He compares their challenge to a legacy automaker like Lexus aiming to emulate the software-centric focus of electric-car maker Tesla (TSLA).

"The architectures are very different," he said.


In Zoom's case, it was designed from scratch as a cloud-based, video-first product. Zoom houses its platform in 13 data centers worldwide. To ensure quality and reliability, Zoom operates a private cloud network.

Meanwhile, analysts say Cisco has struggled to mesh collaboration tools with its videoconferencing offerings. Microsoft Teams, a workplace collaboration platform, appears to be a strong competitor to a combined Zoom-Slack offering.



I would like to add with the recent article from OKTA showing popularity among apps, Microsoft Teams does not show any hint of slowing Zoom down at all. It seems to be having a bigger effect on Slack.
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