Zoom Video Communications Inc. today launched a hardware-as-a-service solution in a bid to capture a bigger slice of enterprise spending on communications equipment for employees.

Zoom offers several premium features to organizations that use its video conferencing platform. They include Zoom Phone, for connecting the platform to business phone systems, and Zoom Rooms, which provides integration with conference room devices such as wall displays.

The hardware-as-a-service offering will enable enterprises that use these features to buy the necessary videoconferencing equipment directly from Zoom. The main selling point is that the hardware is provided as a subscription. Companies pay a fixed monthly fee for the devices they buy as part of their Zoom bill, which removes the upfront costs normally involved in buying a large amount of hardware at once. 

“Many companies can’t afford to equip their employees with effective hardware solutions due to large upfront costs and a significant impact on their budget,” Graeme Geddes, the head of Zoom Phone and Room One, explained in a blog post. “With Zoom HaaS, organizations can equip themselves with hardware solutions from leading vendors.”

The executive added that a subscription model enables companies “to more easily scale up or down” their device fleets as demand changes. Zoom is also promising easier setup. In the interest of simplifying device deployment, the company will give customers the option to buy installation services and “enhanced end-to-end management” as part of their subscriptions.

The communications devices Zoom is offering are sourced from major outside manufacturers such as Plantronics Inc. The installation and management services, in turn, will be provided by the company itself.

Zoom will provide these solutions via ServiceNow Inc.’s popular service delivery platform, which it has deployed internally as part of a deal with the cloud giant separately announced today. The agreement will see both companies adopt one another’s tools. Zoom will use the Customer Service Management module in ServiceNow’s Now platform to deliver services to its customers, while ServiceNow will replace its legacy phone system with Zoom Phone.

“Zoom’s capabilities and easy-to-use interface have helped our employees stay productive, supporting seamless digital conversations with our customers,” ServiceNow Chief Information Officer Chris Bedi said in a statement. “Going forward, with the addition of Zoom Phone, we’re getting a head start on an even more robust experience with Zoom.”

The ServiceNow deal and new hardware-as-a-service subscription bring attention to the sizable upselling opportunities that exist for Zoom within its user base. As of April, the company had more than 300 million daily meeting participants. Enterprises whose employees already use Zoom on a day-to-day basis represent a large and potentially receptive audience to value-added offerings such as professional services.  

Zoom generated revenue of $328.2 million last quarter, up 169% year-over-year. It reported having about 265,400 customers with more than 10 employees.

Image: Zoom