Zoom and ServiceNow in Accord to Use Each Other's Services

Zoom Video and ServiceNow agreed to a deal by which the videoconferencing and cloud-software companies will use each other's services.

Zoom Video (ZM) - Get Report and ServiceNow  (NOW) - Get Report agreed to a deal in which the videoconferencing and cloud-software companies will use each other's services.

At last check shares of Zoom ticked up 0.3% to $261.76, while ServiceNow was up 0.6% to $418.81.

Zoom’s usage soared to 300 million daily meeting participants in April as the coronavirus pandemic shutdown forced companies to conduct their operations through videoconferencing to comply with social distancing and self-quarantine requirements. 

Zoom used ServiceNow’s Customer Service Management to scale its customer service operations and enable communications for its global community. 

ServiceNow CSM also provides case management and personalized self-service options to help manage the influx of customer requests. 

Zoom will use the Now Platform, including new AIOps capabilities, to enable its new hardware-as-a-service business model. Zoom will also expand its implementation of ServiceNow’s CSM to provide HaaS customer support.

ServiceNow will replace its legacy hardware phone system with Zoom Phone. The company has been a Zoom customer since 2018, using Zoom Enterprise for its more than 11,000 global employees to host video meetings across desktop, mobile, and conference rooms.

"Since the global pandemic, ServiceNow employees working from home have relied heavily on Zoom to stay productive," ServiceNow said in a statement.

ServiceNow and Zoom said they would offer integration to enable customers who use both services to tailor the Zoom-ServiceNow experience for their employees. 

On Monday, Baird analyst William Power raised his price target for Zoom to $300 a share from $230 while affirming an outperform rating on the shares. 

While only a small number of Zoom Video's free users plan to upgrade, Power said, they will provide a tailwind to its meetings and phone revenue.