Zoom Pricing Guide (Jul 2020)

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Last updated: Jul 13, 2020

Zoom Pricing

ITQlick rating

Starting from $14.99 per user/month

Zoom is a VoIP and video conferencing software created for small to large businesses. It provides integrated scheduling, cloud, and local recording, group collaboration, premium audio, Zoom meetings and rooms, ...

  • Categories :

    • Communications
    • Video Conferencing
    • VoIP
    • Attendance Tracking
    • Scheduling

Zoom Pricing - The Ultimate Guide

Shlomi Lavi / Jul 13, 2020

Zoom Total Cost Rating: (3/10)

When comparing Zoom to their competitors, on a scale between 1 to 10 Zoom is rated 3, which is lower than the average Video Conferencing software cost. Zoom are offering few flexible plans to their customers, the basic cost of license starting from $14.99 per user/month, read the article below in order to calculate the total cost of ownership (TCO) which includes: customization, data migration, training, hardware, maintnance, updgrades, and more.

You can also leave your info with us to get a free custom quote with the break downs for your business needs.

Video Conferencing Software Price Ranges

Most video conferencing software in the market are priced on a monthly basis and based on the number of hosts or number of users; others are set per conference room or per conference session. The prices for most video conferencing software can be broken into three tiers, starting from $0 to $15, $15 to $35, and $35 and above. These are the price ranges for the basic offering from most vendors as found on their website; hence, premium or enterprise plans with more robust features will cost more.

In addition, different video conferencing products are designed to serve different business sizes; hence, prices may differ in this regard.

  • Small Businesses can expect to pay between $2 and $9 for a video conferencing software per user, per month. For example, InfinCE pricing starts from $5 per user monthly, while Vectera pricing starts from $9 per user monthly. There are also products with perpetual licenses that can be bought with a one-time fee. An example is Hubilo, which costs a one-time fee of $2, although virtual event requirements may determine the total price.
  • Medium Businesses can expect to pay within the range of $9 to $20 for a video conferencing software. For instance, Vonage Business Communications pricing starts from $19 per user monthly, Adjusting cost pricing is around $12 per month, and Cisco WebEx pricing from $13 per user, per month. Also, some vendors, based on their pricing terms, may give discounts depending on the number of users from an organization who subscribed to a chosen plan.
  • Large Businesses can expect to pay within the range of $500 to $1,500 for video conferencing software bulk plans, based on their number of active conference members or per conference session. For example, Webminar Jam pricing starts from around $500 per year for two presenters and 500 attendees. Another example is EverCast, which starts from $999 per conferencing room and with no limit to the number of participants. However, some products for large business sizes are priced monthly and are more robust feature-wise. For example, GotoWebminar pricing starts from $49 per user, per month.

Some vendors do offer free version for their Video Conferencing Software with access to some features. For example, Glip, LoopUp, and Vidyo Connect all have free offerings for small business sizes.

Video Conferencing apps for Mac OS users have prices that fall between the range of $6 to $19. For example, OneScreen Hype starts from $10 per user monthly, ezTalks pricing from $12 per user monthly, and Free Conference pricing from around $9 per month.

Video Conferencing Total Cost Breakdown

When it comes to selecting Video Conferencing software product, buyers are primarily concerned about its cost. In fact, it is the cost that determines whether a potential buyer would go with the product. True, there is no one-size-fits-all formula to determine the “worth” of a software product, but as a software buyer, you want to make sure you get the best value for your money, without having to dig a big hole in your pocket.

Understanding the exact price of Video Conferencing Software isn't easy as The overall cost of software includes the cost of software license, subscription fees, software training cost, customization cost, required hardware, and the cost of maintenance & support and other related services. It's critical that you account for all of these costs to gain an understanding of the system's "total cost of ownership."

3 Software Pricing Models

There are primarily three common pricing models – Perpetual License, Subscription, and Commercial open source.

  • Subscription/Software-As-A-Service: - Relevant for Zoom
    Under this software pricing model, the software is accessed over the Internet, as opposed to installed on-premises. The payment is made either on a per user basis or subscription basis. Ideally, customers are required to pay a recurring monthly fee until a specific period for using the software. Subscription pricing model is more common with Software-as-a-Service (SaaS) apps.
  • Upfront cost for customization and integration is less compared to perpetual license cost because there is not much flexibility with SaaS systems in this area.
  • Recurring cost is greater as customers are required to make monthly payments as subscription fee. Additionally customers using premium support services must pay an extra fee.
  • All in all, the total cost of ownership in the both cases is almost the same and may span over a period of 7-10 years, though you may have to pay a higher perpetual license fee upfront. The software cost may vary from starter to mid range to enterprise level apps in both cases.
  • Perpetual license: - Relevant for Zoom
    A common pricing model for on-premise applications, perpetual license requires a customer to pay an upfront sum to own the software or other intellectual property on-premises for a fixed term.
  • Upfront cost involves the fee for installation, customization, integration with existing systems, besides perpetual license fee.
  • Recurring cost is low in this pricing model and may include cost for updates, maintenance, upgrades, and patches. Some vendors do offer premium support services, which come for an extra price.
  • Commercial open source: Not relevant for Zoom
    The customer can acquire the software free of cost without having to incur any upfront license fee. As a customer, you’re solely responsible for the ongoing maintenance, upgrading, customization, and troubleshooting of the application to meet your specific needs. You are on your own for providing end-user support, since you are not locked in with a vendor-supplied software solution.

Zoom - cost of customization:

If you need specific features in your software catering to your specific business requirements, the vendor will charge customization cost, depending on your needs and feature requirement. Ideally customization cost is more complex to calculate compared to licensing cost.

Some apps allow you to easily combine data from multiple sources, without any complicated query requirements, while some others can be embedded into different applications to provide enhanced reporting. If you seek products that support customizable dashboards and predictive analysis to identity possible trends and facilitate decision making, you may have to pay higher for all the customization features.

Additionally, the following factors may affect the cost of customization:
  • User interface changes
  • Configurable dashboards
  • Data elements required for tracking
  • Forms to collect additional data
  • Dashboard, management and operational reports that are needed.
  • Workflows and how complex they are.
  • Forms to collect additional data.
Here are some questions to answer: How much customization is needed? How many system you want to integrate to? Does your company work like industry standars or has it's own customize processes? What kind of special reports are needed?

In order to calculate the cost of customization you can use the following estimates:

  • Minimal customization - integrate with 1-2 systems: $2,500
  • Standard customization - integrate with 3-5 systems: $10,000
  • Fully customized system - integrate with more than 5 systems: $25,000

Zoom - cost of data migration: Relevant for Zoom

Most companies opt for data migration services from a vendor, which raises the cost of product ownership. If you choose to transfer data on your own, you can avoid paying the cost of data migration.
Data migration cost depends on the amount of data to be transferred, your current software, availability of migration tools, complexity of data, and gaps between the existing system and the new system.

If your data is stored in excel spreadsheets, then it may incur you a lot of time and money to migrate data from excel.
By involving a software services provider in data migration, you are asking them to offer additional services, for which you may have to pay extra.

As a rule of thumb the cost of data migration depents on how many records you want to migrate. Records can include number of Customers, invoices, financial transactions, products, versions, etc. Here is a list you can use as a rule of thumb:

  • 1,000 records: $500
  • 10,000 records: $2,500
  • 100,000 records: $10,000
  • 1,000,000+ records: $25,000

Zoom - cost of training: Relevant for Zoom

As a software buyer, you are required to pay extra for in-person training, though some vendors offer web-based training as part of the package. Training cost may involve end-user training, video/self training, group training, department training, and train the trainer.

Training cost derived from the training approach that you select for your organization:
  • End-user training.
  • Group/Department training.
  • Video /self training.
  • Train the trainer approach.

Here are some questions to answer: How many training groups (different departments, usages, type of users) are needed?

In order to calculate the cost of training you can use the following estimates:

  • 1-2 Training Sessions: $500
  • 3-4 Training Sessions: $1,500
  • 5-7 Training Sessions: $2,500
  • 8-10 Training Sessions: $5,000

Cost of Hardware & IT: - Relevant for Zoom

This can be a major expense for on-premise software buyers that need their own servers and other infrastructure to install the solution. This may be a costlier alternative than cloud solutions. In that case, you may want to go with cloud services that do not involve infrastructural investments and you can rely on the vendor’s web-based solutions.

Software pricing may also depend on software capabilities, including marketing automation, sales automation, help desk, and call center.

Cost of support for Zoom - An Important Factor:

As a customer investing in a software product, you are looking for constant support, besides the price of the software. Support has become a crucial part of value-based pricing that you are willing to pay as a customer.

There is no use buying a software product and facing inconvenience due to some technical glitches that you know nothing about and are reliant on the vendor to give you a solution. It is crucial that you go for a product from a vendor that provides solutions to ongoing problems.

Shift From Licensing Fee to Subscription Fee Models: - Relevant for Zoom

In an effort to build more sustained relationships with customers, most software vendors have chosen to offer the managed services model to accommodate changing customer behavior. There has been a significant drop in licensing revenue, thanks to the emergence of software-as-a-service model and downfall of the packaged software.

The new pricing model requires customers to pay little upfront fee and ongoing subscription fee on a monthly basis. The alternate pricing model stretches payments over a period of few years compared to lump-sum licensing fee.

Customers are happy to pay small monthly installments for subscribing to the ongoing support and maintenance services from vendors, without having to pay large upfront payment which can be too much for small businesses.

Compare Zoom pricing to Alternarive Video Conferencing solutions:

When comparing Zoom to their competitors, on a scale between 1 to 10 Zoom is rated 3, which is lower than the average Video Conferencing software cost. TimeViewer is an online meetings management software for small to large companies available at the same price range as Zoom. Zoom has an app version for iOS and Android devices while TimeViewer has an app for iOS, Android, and Windows devices. TimeViewer also has call sharing, chat, collaboration, whiteboard, user management, live/video conferencing, and meeting management features as Zoom.

However, Zoom still offers more functions than TimeViewer such as customizable branding, document management and storage, single sign-on, and role-based permission. Both have high customer reviews online but Zoom is a more beneficial video conferencing solution. Skype for Business is a video conferencing software for the same client size as Zoom.

However, Skype for Business pricing is lower than Zoom at $2 per month. Skype can be downloaded in iOS, Android, and Windows mobile devices. Skype provides the same features as Zoom including API, chat, collaborative workspace, instant messaging, video streaming, and live video conferencing. Both have excellent vendor reputation online but Skype can be a cheaper alternative to Zoom.

How Can We Help?

The science of software cost/pricing may not be easy to understand. If you seek to understand software pricing model, get in touch with ITQlick experts. Contact us today and find solutions to all your questions. We will match software vendors that offer the best pricing on technology that fits your needs.