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BT expands digital workplace portfolio with Zoom

New carrier agreement with conferencing provider Zoom designed to allow BT to offer a managed service with integrated networking to ensure optimal user experiences

In yet another vindication of the rocketing strength of the video-conferencing supplier since lockdowns began around the world, leading UK telco and communications provider BT announced on 12 October that it is expanding its multinational customers’ choice of cloud-based audio and video collaboration managed services with the addition of Zoom Meetings to its portfolio.

Zoom’s growth over the course of 2020 has been vertiginous and, like the Covid-19 pandemic itself, unprecedented. For its second quarter ended 31 July 2020, Zoom reported total revenue of $663.5m, up 355% year on year (YoY), showing just how the world has changed to the benefit of companies such as Zoom.

The company’s GAAP income from operations for the quarter was $188.1m, compared with $2.3m in the second quarter of fiscal year 2020. After adjusting for stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, and acquisition-related expenses, non-GAAP income from operations for the second quarter, was $277m, up from $20.7m in the second quarter of the previous fiscal year.

Showing the rush for distributed systems driven by the Covid-19 outbreak, Zoom’s net cash provided by operating activities was $401.3m for the quarter, compared with $31.2m in the second quarter of fiscal year 2020. Free cash flow was $373.4m, compared with $17.1m in the second quarter a year ago.

Driving the mass income generation was the continued mass influx of customers, with the number contributing more than $100,000 in training twelve months (TTM) revenue up 112%YoY. Zoom had approximately 370,200 customers with more than 10 employees, an annual increase of 458%.

To service these customers with a guaranteed quality of experience, Zoom has signed a new carrier agreement between BT. The deal means the UK telco has becomes the first global provider to offer a fully managed Zoom Meetings service featuring a choice of connectivity and integration with its global voice network. The service also includes end-to-end experience monitoring and what is said to be “enhanced” security.

Connectivity choices include internet, global SIP, PSTN or MPLS. BT also offers security options such as encrypting communications, protecting customers’ user IDs, secure, private and resilient MPLS connectivity, dedicated network gateways and user adoption programmes, which educate users on secure best practice. The agreement also enables BT to offer Zoom Rooms, Zoom’s extendable software-based conference room system.

Commenting on the deal, and why the company chose the comms provider, Zoom chief revenue officer Ryan Azus said: “We chose BT as a global managed service partner because it’s a trusted and established leader in the world market with in-depth enterprise voice, video, security, cloud and networking expertise.

“Our new agreement will help large enterprises fully experience the benefits Zoom Meetings, Zoom Phone and Zoom Rooms offer. This partnership will also expand Zoom’s global footprint and enterprise sales capabilities.”

Andrew Small, director of global portfolio, BT, added: “We’re keeping it simple for customers, helping them create secure and productive digital workplaces for their people, wherever they are. Our new managed service allows global enterprises, typically with complex network and IT infrastructure, to consume Zoom Meetings in a simple, consistent and secure way with optimised experiences for their people around the world.”

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