Facebook, Inc. (NASDAQ: FB) Is Taking Its Portal Video Chat Gadgets to The Business World

Facebook, Inc. (NASDAQ: FB) jumped up around 1% in premarket session on Wednesday after the firm aggressively announced that it is taking its Portal video chat gadgets to the business world, attempting to grab a bigger slice of the videoconferencing market, where Zoom, Cisco Webex and Microsoft’s Skype are amid the leaders.

Facebook revealed on Tuesday that Workplace, its communication and collaboration service for firms, will work with Portal devices, which so far contain been marketed for consumers. People who own a Portal in addition to use Workplace in the office will be capable to combine the two to make video calls to colleagues.

Facebook’s head of Workplace, Karandeep Anand said that even with the first generation of the device, they started seeing a lot of people requesting to be able to call in to work calls.

The videoconferencing space has received a healthy amount of attention current year, after Zoom’s IPO, which rocketed the firm around a $21B market cap. Global Market Insights anticipates the market to reach $20B in revenue by 2024.

Facebook (FB) revealed Workplace in late 2016 as a communications tool for businesses. Workplace declared that it has over 3M paid users, up from 2M in February, and customers include Nestle, Telefonica and Petco.

Portal hit the market in late 2018 as a video calling device that can likewise play music. The firm released its Q2 of Portal devices in September. Facebook has never revealed usage numbers for Portal, but IDC estimates that Facebook has shipped just over 54,000 Portal devices since its launch.

Anand declared that Workplace is still more focused on reaching users than ramping up revenue.

He said that it has not been the driving force for the team. It’s been to bring these important work tools to hundreds of millions of people, but his personal aspiration is that they build tools for 1B people.