Zoho Corp. Strengths, Domain Expertise, and Key Differentiators
After years of blistering growth by securing hundreds of thousands of customers, Zoho is showing no signs of slowing down by adding 80,000 new accounts in 2018. Usability, aggressive pricing, and a laser focus on its versatile platform that supports all Zoho applications from the ground up are some of the key attributes of Zoho.
The fast-growing vendor offers an extensive portfolio of products including Email Hosting, Document Management, Office Suite, Project Management, as well as business applications for accounting, CRM, HCM, campaign management, and customer support. At its core is the Zoho platform that delivers both infrastructure and platform services like compute, storage, search, business intelligence, messaging, IT service management as well as a raft of developer tools for customers to accommodate their own industry-specific requirements by layering their business processes and workflow on top of Zoho applications. Customers report tangible operational improvement after running Zoho One to help them manage customer relationships and employee productivity by making it easier than ever to share information and collaborate.
In 2019, Zoho upped the ante by delivering telephony, identity, and single sign-on as well as provisioning and access management to Zoho One customers for free, raising the bar on how enterprise solutions should be scaled and delivered.
Despite such built-in features that are being added and enhanced continuously, Zoho has made its value proposition competitively priced with many accounts paying a few hundred dollars per user per year, much more palatable than what on-premise ERP products would call for.
Zoho Corp. Recent Developments
In May 2020 Zoho unveiled Bigin, a new pipeline-centric CRM software designed specifically for small and micro business owners. Bigin by Zoho CRM offers a simple solution for millions of small businesses to keep track of their customers and improve customer relationships without having to worry about high costs or complicated features.
Bigin is a pipeline-centric CRM solution focused on small businesses that do not need an elaborate, end-to-end CRM. If businesses outgrow Bigin, they can upgrade to Zoho CRM with ease. Bigin is also an ideal fit for freelancers and individuals who want to manage their personal business pipelines online. Zoho CRM, on the other hand, is focused on growing businesses of all sizes, especially enterprises that are looking to utilize the larger CRM platform for their advanced business needs.
Some of Bigin's features in better and faster user onboarding, multiple pipelines for customer operations, Bigin's built-in telephony, which lets users choose from a range of popular telephony providers in the Zoho Phonebridge marketplace, better workflow automation, real-time notifications and analytics and fully mobile.
In 2019, Zoho bolstered its flagship product Zoho One, which is considered the operating system for modern enterprises. The fast-growing Cloud vendor is adding more value-added services such as telephony, identity, and single sign-on as well as provisioning and access management, enabling customers to consume more of its applications from CRM to search and from ERP to real-time collaboration. Some of its customers standardizing their operations on Zoho One now run an average of 18 applications – mostly CRM-specific modules for sales force automation, analytics, financial management, invoicing, and campaign management.
In 2019, Zoho also made developers focus on one of its top priorities by delivering an array of tools and infrastructure technologies for tens of thousands of developers around the world. These developers can optimize their Zoho implementations through Zoho Catalyst, a full-stack serverless platform for rapid rollout of microservices and applets designed to automate tasks like forms submission.
Zoho Corp. Mergers and acquisitions (M&A) Activities
Zoho, a provider of customer relations management and other software, has invested almost $10 million in five startups. The companies Zoho bought into include machine-vision company Zentron Labs and medical devices maker vTitan.
Zoho Corp. Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Zoho Corp. applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Zoho Corp. and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Zoho One, Zoho CRM, customers.
Zoho Corp. Overview
Ownership: - x
Number of Employees: 8000
Functional Market: Absence and Leave Management, Workforce Scheduling, Task Management, Time and Attendance, Core HR, Onboarding, Applicant Tracking Systems, Performance and Goal Management, Learning and Development,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction, Real Estate, Consumer Packaged Goods, Distribution, K12, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Faith Based Nonprofit, Youth and Elderly Care Nonprofit, Special Cause Nonprofit, Oil and Gas, Professional Services, Retail, Transportation, Utilities,
Zoho Corp. Key Cloud and HCM Applications
Zoho One, Zoho CRM,
Zoho Corp. HCM and Cloud HCM Applications Revenues, $M:
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* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Zoho Corp. Revenue Breakdown by Type:
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Zoho Corp. HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets
2019 HCM Revenues, By Sub-Functional Markets, $M
Zoho Corp. HCM Applications Revenues By Verticals, $M:
Zoho Corp. Total and HCM Applications Revenues by Region:
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Zoho Corp. Direct vs Indirect sales
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Zoho Corp. Customers - Breakdown by Geo, Size, Vertical and Product
No. of Zoho Corp. Customers: 360000
No. of Zoho Corp. HCM Applications Customers: 15000
No. of Zoho Corp. Cloud HCM Customers: 360000
No. of Zoho Corp. Cloud HCM Subscribers: 50 million
Among their new customer wins in 2019 are, SpiceJet, Star Health and Allied Insurance, India Infoline Limited, UMA Ultimate Medical Academy, Sanmar, TVS Automobile Solutions, Browns Jewellers, Meril Life Sciences Pvt. Ltd, and Agappe.
Zoho has more than 360,000 customers worldwide and recently its subscriber base has exceeded 50 million.
Among Zoho customers are HP, Sony, Lenovo, Pixar, DHL, PayPal, IKEA, Alstom, BBC, APEX Digital, JetHub, Anderson Sales Advantage, ActionCoach, Milagro Advisory Group, Bharath Beedi Works, TECO Pneumatic, Natural Hero, Proteomics Consult, MicroLOGIX, Pepperstone Financial, ArcSource, Ondimar.com, T3 Direct Marketing, and others.
ManageEngine is used by customers worldwide. One of ManageEngine’s products WebNMS offers Network Management Framework with over 25,000 carrier deployments worldwide.
Zoho Corp. Market Opportunities, M&A and Geo Expansions
In one of its biggest expansion moves, Zoho has built a 375-acre headquarters in Austin, Texas, which could create hundreds of new positions in development, sales, and support over the next few years.
The plan to move its US headquarters to Austin from Pleasanton, CA, underscores Zoho’s increased commitment not just to the US market, but also the entire Americas region. Zoho has already invested heavily in Latin America including scores of new resources in Mexico, Brazil, and Colombia. Customers in Latin America being surveyed by ARTW report easier access to quality information as they benefit from such intuitive collaborative tools.
Zoho has also made significant inroads into EMEA and its home base in Asia. The global expansion comes on the heels of the growing adoptions of Zoho One with thousands of new customers being added around the globe. Zoho has also made great strides with its AI strategy after embarking on dozens of projects from handwriting recognition to language predictor, and from trend detection to sentiment analysis. Another new area comes in the form of Orchestly, a low-code development framework that allows any employee in different lines of business – not IT power users or developers - to model business processes using workflows simply by point and clicks.
Raj Sahblok, president of Zoho, is now in charge of taking Zoho upmarket by hiring a team of solution consultants who can identify pain points and implementation challenges of large enterprises – mostly entities with hundreds or a few thousand employees and up to $1 billion in revenues. In 2019, Zoho has displaced Microsoft, Oracle, Salesforce, and SAP systems at midmarket organizations searching for a viable, simple to run and less costly alternative to these familiar brands.
In order to make its upmarket strategy successful, 2020 will be a turning point for Zoho to commit not just professional services and support resources, but also branding and distinctive ecosystem to nurture, capture and showcase lighthouse enterprise deals. Similar to Salesforce, Zoho has been positioning itself both as a platform and an application provider.
Zoho saw a 39% jump in enterprise applications revenues to reach $520 million in 2018, according to our estimates. About 45% of its product revenues come from a growing portfolio of CRM applications. It also sells BI, Collaboration, ERP, and IT Help Desk products.
Over the past five years, Zoho has been growing consistently at 30%+ annually both in terms of the number of registered users and paid customers. If its momentum continues, Zoho could be fetching more than $1 billion in product revenues over the next few years.
What works to Zoho’s advantage is its full-stack approach, something that has become increasingly foreign to Salesforce’s customers following its buying spree. Like death and taxes, some long-time Salesforce customers may have to endure the growing burden of adding Lightning, Einstein, Mulesoft, and now Tableau to a bloated platform that could entail skyrocketing subscription fees. Zoho One’s $30 per user per month pricing does appear more palatable to many. Still, nobody gets fired for choosing Salesforce. Thusly it’s incumbent upon Zoho to prove that it is a safe and smart choice.
Zoho Corp. Risks and Challenges
For Zoho, the next phase of growth depends on its ability to juggle multiple market components. Showcasing its technology prowess, Zoho has made its all-inclusive platform strategy the key selling point for its customers – eliminating any need for integration or inconsistent user experience. While this by no means is a proprietary or customer lock-in strategy, open integration to other tools from Salesforce to Intuit QuickBooks may be needed for Zoho to broaden its appeal. That’s why Salesforce is paying a princely sum for Mulesoft.
Zoho’s API integration strategy is something that many of its customers will start demanding as it scales up to cover larger accounts that will continue to operate in a heterogeneous environment for a long time to come because of the different moving parts required to run and sustain their business, or industry-specific domain expertise.
Another issue has to do with Zoho’s firm position on operating its own infrastructure and not relying on other IaaS providers. While this gives Zoho complete control over the online experience of its customers, it also gives ample reasons for Zoho to benchmark its SLA against that of AWS, Azure, Google, or any other Cloud provider for that matter. Still, the hybrid cloud approach resonates with customers as many are still at the early stages of their Cloud migration journey. With Zoho going after larger enterprises, backup and disaster recovery support will only become more demanding.
The need for Zoho to have a ready list of backup partners and IaaS options could become a more pressing issue as the vendor starts delivering its solutions to customers that operate in many countries beyond its availability zones.
Zoho Corp. Ecosystem, Partners, Resellers and SI
As one of the first Cloud-based collaboration software vendors with a loyal following and a steady stream of recurring revenues, Zoho has shaken up the small business market.
Zoho currently sells direct through its sales force and website. Additionally, it has 1,000 partners with 150 that handle the bulk of implementations for clients in locations where Zoho has limited local presence and support.
As Zoho continues to expand around the world, its reliance on partners will increase. In 2018, Zoho partnered with MariApps Marine Solutions, a leading marine industry digital solutions provider, to offer Human Capital Management (HCM) automation solutions to the marine sector. Under this partnership, Zoho people are integrated with MariApps' PAL ERP solutions. The first customer of this integrated solution was Bernhard Schulte group of companies.
Zoho Expense integrated with QuickBooks Online, the online version of Intuit's popular accounting software for small businesses. The two applications work together and share data to help businesses simplify the reporting and accounting of employees' business and travel expenses.
Zoho Corp. Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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