At May 2020, the news of Verizon’s acquires BlueJeans was reported to be final. The acquired company is a reputable event and video conferencing platform, which currently provide online video service for a broad range of business segments from small companies to several of the largest global brands. It also has major role in ensuring the operations of these companies during the pandemic due to the surge of work-from-home trend. The deal was expected to extend the impressive communication portfolio of Verizon.
What the Deal Implies
The Verizon acquisition in 2020 resulted in a unification between its communication service business and the trusted, smart, and user-friendly platform of the virtual conference. The customers of both sides would be benefitted by this transaction.
As a part of the deal, the online event platform would be integrated deeply the 5G product plan from Verizon – to offer real-time and secure communication alternative for various areas including remote learning and work, and telemedicine.
The Verizon Business’ CEO, Tami Erwin, had stated the company’s excitement over the combination, and to deliver the needs of their customers. The same enthusiasm was shared with the side of Blue Jean video conferencing company, as the CEO, Quentin Gallivan, also claimed how this merger will carry compelling and extremely unique solution for the joint customers.
Blue Jeans network is a company that frequently referred as one of the leading providers of secure, simple, and accessible cloud-based interactive events, meetings, collaborations, and video conference platform. Since it was established in 2009, the company had raked $175 million and gained more than 15,000 business customers.
The deal of Verizon’s acquires BlueJeans means that the company’s founders and primary team would join the maintained innovation and growth of Verizon’s business. Following the event, their employees would automatically become employees of Verizon as well. Verizon itself is a business that has served for more than 5,000 huge enterprises including banking and healthcare corporations, resulting in $30 billion revenue stream.
Industry Shifts Possibility as the Effect of the Acquisition
Zoom as become the preferred online conference platform for a lot of people, as more and more white-collar employees were directed to work remotely because of the breaking pandemic. However, the news of Verizon’s acquisition over the virtual event app might shift the competition.
BlueJeans have several massive benefits compared to Zoom when it comes to security and safety features for enterprise clients. It is not once or twice that Zoom received bans and warning due to security concerns. One of the examples comes from Google – which prohibited its employees from using this service on their company laptops.
When both virtual event companies are compared, Zoom also had more issue regarding the absence of end-to-end encryption that resulted in uninvited guests to join meeting sessions. Currently, this company has announced that it halted the entire developments to concentrate on resolving privacy and security issues. These times could be taken as opportunity for other virtual meeting platforms to take over the game.
That being said, the acquired virtual events provider by Verizon is more likely to face competition with corporate players such as Microsoft Teams, Google Hangouts, or Cisco WebEx. Still, the notice of acquisition should be taken note by the enterprise market.