Zoom announces its new word processing tool
- The company unveiled its word processing tool, Zoom Docs, which will be available in 2024
- Zoom Docs is another step toward a full office suite; but the tool itself is insufficient to compete with internet giants
- Maintain HOLD, as we believe that Zoom is still in the process of translating its product innovation into sustainable growth
Zoom Docs represents another stride towards a comprehensive office suite. Zoom officially introduced its new word processing tool, Zoom Docs, during Zoomtopia 2023, with a scheduled release in 2024. Zoom Docs offers document creation, editing, and collaboration features similar to other cloud-based document solutions. With Zoom AI Companion, users can perform tasks such as summarising meetings, chats, and information within Zoom Docs from Zoom Meetings. Alongside the Mail and Calendar offerings introduced at last year’s event, Zoom Docs continues to propel Zoom towards becoming a full office suite alternative to Google Workspace and Microsoft 365.
This development is important for Zoom to maintain its competitiveness in the face of internet giants like Microsoft (MSFT US) and Google (GOOGL US), both of which offer comprehensive office suites, including their online video meeting tools and AI assistants. We believe that the introduction of a word processing tool can enrich Zoom’s product offerings as a full office suite. However, the tool itself is insufficient to compete with internet giants, given their large scale and user base. Furthermore, unlike Microsoft and Google, Zoom has yet to announce its commercialisation plan for its AI assistant tool. We maintain our HOLD rating, as we believe that Zoom is still in the process of translating its product innovation into sustainable growth.