Zoom and Mitel announce strategic partnership to deliver differentiated AI-first hybrid communications and collaboration solution for enterprises worldwide

Rhea-AI Summary

Zoom (NASDAQ: ZM) and Mitel have announced a strategic partnership to deliver a hybrid communications solution combining Zoom Workplace and Mitel's communications platform. The partnership aims to address enterprise demand for hybrid unified communications (UC) deployments, offering security and control alongside collaboration tools.

Key points:

• Zoom becomes Mitel's exclusive UCaaS offering within its UC portfolio
• Mitel's 70 million global end-users gain access to Zoom AI Companion, Meetings, and Team Chat
• Joint solution will be generally available in the first half of 2025
• Partnership targets growing demand for hybrid capabilities across on-premises and cloud models
• Zoom sales teams can sell Mitel's devices for hybrid customers requiring physical endpoints

Positive

• Strategic partnership with Mitel expands Zoom's market reach, particularly in EMEA
• Zoom becomes Mitel's exclusive UCaaS offering, potentially increasing its user base
• Access to Mitel's 70 million global end-users for Zoom's services
• Opportunity for Zoom to sell Mitel's devices to hybrid customers
• Addresses growing enterprise demand for hybrid unified communications solutions

Negative

• Joint solution not available until the first half of 2025, potentially delaying revenue impact
• Integration complexities may arise when combining Zoom and Mitel technologies

Insights

Financial Analyst

This strategic partnership between Zoom and Mitel represents a significant move in the unified communications market. By combining Zoom's cloud-based collaboration tools with Mitel's established communications platforms, they're targeting the growing demand for hybrid UC solutions. This could potentially expand Zoom's enterprise market share, especially in regions where Mitel has a strong presence.

The deal positions Zoom as Mitel's exclusive UCaaS offering, which could drive substantial revenue growth for Zoom in the coming years. With access to Mitel's 70 million global end-users and 7,000 partners, Zoom gains a significant channel for expansion. However, the financial impact won't be immediate, as the joint solution isn't expected to be available until the first half of 2025.

Investors should monitor how this partnership affects Zoom's customer acquisition costs and average revenue per user in the long term. The success of this venture could potentially strengthen Zoom's position against competitors like Microsoft Teams and Cisco Webex in the enterprise market.

Tech Expert

This partnership is a strategic move to address the evolving needs of hybrid work environments. The integration of Zoom's AI-powered collaboration tools with Mitel's robust communication platforms creates a unique value proposition in the market. The bi-directional capabilities between Zoom Workplace and Mitel platforms will likely enhance user experience and operational efficiency for enterprises.

A key technical advantage is the use of Mitel's Common Communication Framework, which allows for deep integration without the need for add-ons or plug-ins. This should result in a more seamless and feature-rich experience for users, including advanced features like call-to-video escalation and centralized user provisioning.

The inclusion of Zoom AI Companion in this offering could be a significant differentiator, potentially boosting productivity and enhancing the overall collaboration experience. However, the success of this integration will depend on the execution of the technical roadmap and the ability to deliver a truly unified experience across different deployment models.

Market Research Analyst

This partnership addresses a critical market trend: the growing demand for hybrid unified communications solutions. With 91% of enterprises prioritizing a hybrid approach for business communications, Zoom and Mitel are well-positioned to capitalize on this shift. The flexibility offered by this solution could be particularly appealing to enterprises that need to balance innovation with regulatory compliance and security concerns.

The partnership also aligns with the trend towards AI-driven workplace solutions. By incorporating Zoom AI Companion, the offering taps into the growing enterprise appetite for AI tools that can enhance productivity and streamline workflows. This could be a key differentiator in a competitive market.

However, the success of this venture will depend on how well it addresses the specific needs of different industries and regions. With Mitel's strong presence in EMEA and other global markets, Zoom has an opportunity to expand its footprint in areas where it may have previously had less penetration. The ability to offer a tailored solution that combines cloud flexibility with on-premises control could be particularly attractive to industries with strict data sovereignty requirements or complex legacy systems.

Mitel selects Zoom to jointly develop an exclusive hybrid offering with bi-directional capabilities between Zoom Workplace and Mitel communications platforms; enables Mitel customers with a path to transition to Zoom UCaaS on their terms

SAN JOSE, Calif., Sept. 18, 2024 (GLOBE NEWSWIRE) -- Today, Zoom Video Communications, Inc. (NASDAQ: ZM) and Mitel, a global leader in business communications, announced a strategic partnership designed to empower enterprises worldwide with a unique hybrid cloud solution that combines Zoom Workplace and Zoom AI Companion with Mitel’s flagship communications platform in a modern, deeply integrated communication experience. The partnership will address growing enterprise demand for hybrid unified communications (UC) deployments with a “best-of-both-worlds” solution that delivers security and control for mission-critical communications alongside exceptional collaboration to enhance business productivity. The partnership will introduce a Zoom-first experience within Mitel’s hybrid portfolio, including access to the full Zoom Workplace platform, which works seamlessly with existing Mitel investments.

Modern work continues to evolve, with 82% of leaders planning to make their working styles more flexible in the next two years.* As these changes and the desire to improve employee productivity and customer engagement accelerate, the demand for greater flexibility and modern collaboration solutions is increasing. Enterprises need AI-first solutions that will help drive their business forward, while also maintaining a level of control, regulatory compliance, and security for their mission-critical communications. This complex balance of control and flexibility is prompting 91% of enterprises to prioritize a hybrid approach for their business communications.**

Leveraging Mitel’s Common Communication Framework, the unique Zoom-Mitel offering will deliver a fully embedded, feature-rich experience without add-ons or plug-ins, including UC and mobile app integration, hardware device-level integration, and advanced business process capabilities like bi-directional presence, call-to-video escalation, and centralized user provisioning and administration. Additionally, users will gain access to Zoom Phone with embedded support for Mitel PBX platforms, whether deployed on-premises or in the cloud. It also creates a compelling opportunity for Mitel’s more than 70 million global end-users to elevate their collaboration experience by allowing them to seamlessly access Zoom AI Companion***, Meetings, Team Chat, and more while leveraging their existing Mitel investments.

Partnership highlights:

• Establishes Zoom as Mitel’s exclusive UCaaS offering within its overall UC portfolio for customers of all sizes.
• Enables Mitel’s sales teams and over 7,000 partners globally to cross-sell the Zoom-first experience as a core part of the unique hybrid solution or to help customers migrate to Zoom if UCaaS is their preferred deployment model.
• Enables Zoom sales teams to sell Mitel’s award-winning devices for Mitel hybrid customers requiring physical endpoints.
• Supports growing customer demand for hybrid capabilities that “just work” across on-premises and private and public cloud models, offering flexibility, security, and control within the enterprise.
• Provides on-premises enterprise companies an opportunity to introduce industry-leading collaboration capabilities through a model and pace that suits their needs.
  

“As organizations continue to prioritize hybrid UC deployments, it is critical that users across the globe have access to AI-first, reliable, and seamless collaboration solutions. Together, Zoom and Mitel are now able to address the largest segment of today’s communications market, particularly in EMEA, strengthening growth potential and enabling more users worldwide to reimagine the ways in which they work,” said Eric S. Yuan, founder and CEO of Zoom. “Like Zoom, Mitel has a customer-first approach where providing a best-in-class, collaborative working environment is of the utmost importance. I look forward to watching this partnership progress and continuing to work closely with Mitel to meet the evolving needs of our users.”

“Effective communication and collaboration are the lifeblood of modern organizations, but they become transformative when tailored to meet each customer’s unique business objectives. Flexibility and choice are at the heart of every Mitel solution and partnering with Zoom strengthens our ability to deliver on that promise for customers around the world,” said Tarun Loomba, president and CEO of Mitel. “Zoom has a deep understanding of the enterprise market and the flexibility required to support the complex, nuanced needs of today’s distributed workforce. As hybrid communications emerge as the future of business, we see this partnership as a catalyst for driving innovation and growth, together with the Zoom team.”

The joint solution will be generally available for customers in the first half of 2025. Advanced capabilities are underway as part of the multi-phase partnership plan, and continued enhancements are being planned.

“This partnership recognizes the value of hybrid communications. The reality of modern business, today, is that requirements will change and get more complex,” said Dave Michels, founder and lead analyst, TalkingPointz. “Mitel offers powerful private cloud and single-tenant voice solutions, and Zoom has excellent enterprise video and team chat. Together, they create a seamless solution without putting an integration burden on the customer. This partnership brings the best of hybrid communication to market for those looking not to sacrifice flexibility, control, and resiliency, globally.”

* According to an August 2024 global survey conducted by Zoom and Reworked INSIGHTS titled, “Navigating the Future of Work: Global Perspectives on Hybrid Models and Technology.”
** According to a June 2024 global survey of 1,954 organizations conducted by Mitel and Techaisle.
***Included at no additional cost with the paid services assigned to Zoom accounts. Zoom AI Companion may not be available for all regions and industry verticals.

About Zoom
Zoom’s mission is to provide one platform that delivers limitless human connection. Reimagine teamwork with Zoom Workplace — Zoom’s open collaboration platform with AI Companion that empowers teams to be more productive. Together with Zoom Workplace, Zoom’s Business Services for sales, marketing, and customer care teams, including Zoom Contact Center, strengthen customer relationships throughout the customer lifecycle. Founded in 2011, Zoom is publicly traded (NASDAQ: ZM) and headquartered in San Jose, California. Get more information at zoom.com.

About Mitel
A global market leader in business communications powering more than two billion business connections, Mitel helps businesses and service providers connect, collaborate and provide innovative services to their customers. Our innovation and communications experts serve business users in more than 100 countries. For more information, go to www.mitel.com and follow us on LinkedIn and Twitter @Mitel.

Zoom Public Relations
Rachel Shatz
press@zoom.us

Mitel Public Relations
Trever Kerr, Americas
Sandrine Quinton, Europe and Asia
pr@mitel.com  

FAQ

What is the new partnership between Zoom and Mitel announced on September 18, 2024?

Zoom (ZM) and Mitel announced a strategic partnership to deliver a hybrid communications solution combining Zoom Workplace and Mitel's communications platform, addressing enterprise demand for hybrid unified communications deployments.

When will the Zoom-Mitel joint solution be available to customers?

The joint solution between Zoom (ZM) and Mitel is expected to be generally available to customers in the first half of 2025.

How does the Zoom-Mitel partnership benefit Mitel's existing customers?

Mitel's 70 million global end-users will gain access to Zoom AI Companion, Meetings, Team Chat, and more while leveraging their existing Mitel investments, enhancing their collaboration experience.

What is Zoom's role in Mitel's UC portfolio following the partnership announcement?

As part of the partnership, Zoom (ZM) becomes Mitel's exclusive UCaaS offering within its overall UC portfolio for customers of all sizes.