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June 24, 2020 12:45 am

What Comes After Zoom?

Analyst Benedict Evans writes: There will be video in everything, just as there is voice in everything, and there will be a great deal of proliferation into industry verticals on one hand and into unbundling pieces of the tech stack on the other. On one hand video in healthcare, education or insurance is about the workflow, the data model and the route to market, and lots more interesting companies will be created, and on the other hand Slack is deploying video on top of Amazon's building blocks, and lots of interesting companies will be created here as well. There's lots of bundling and unbundling coming, as always. Everything will be 'video' and then it will disappear inside. An important part of this is that there seem to be few real network effects in a video call per se. You don't necessarily need an account to join a call, and you generally don't need an application either, especially on the desktop -- you just click on a link in your calendar and the call opens in the browser. Indeed, the calendar is often the aggregation layer -- you don't need to know what service the next call uses, just when it is. Skype needed both an account and an app, so had a network effect (and lost even so). WhatsApp uses the telephone numbering system as an address and so piggybacked on your phone's contact list- effectively it used the PSTN as the social graph rather than having to build its own. But a group video call is a URL and a calendar invitation -- it has no graph of its own. Incidentally, one of the ways that this all feels very 1.0 is the rather artificial distinction between calls that are based on a 'room', where the addressing system is a URL and anyone can join without an account, and calls that are based on 'people', where everyone joining needs their own address, whether it's a phone number, an account or something else. Hence Google has both Meet (URLs) and Duo (people) -- Apple's FaceTime is only people (no URLs). Taking this one step further, a big part of the friction that Zoom removed was that you don't need an account, an app or a social graph to use it: Zoom made network effects irrelevant. But, that means Zoom doesn't have those network effects either. It grew by removing defensibility.

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