Zoho shifts focus to enterprise solutions with leadership change

Zoho has announced a significant shift in its business focus during ZohoDay 2025, moving from a small to medium-sized business (SMB) emphasis to targeting larger enterprises while still committing to corporate responsibility. At the event held in Austin, Zoho showcased its financial success with $1.5 billion in revenue for 2024 and highlighted its user growth. The company plans to leverage this financial stability to invest more in artificial intelligence (AI) technologies. Sridhar Vembu, the CEO and co-founder, has stepped down as CEO to become the company's chief scientist, allowing him to concentrate on research and development. His son, Mani Vembu, has taken over as the new CEO, bringing years of experience from various roles within the company. Zoho’s new leadership structure features other executives stepping into key positions. Shailesh Kumar Davey is now CEO of Zoho Corporation, overseeing all products and services. Tony Thomas leads the U.S. operations, and Rajesh Ganesan heads the IT management software division, ManageEngine. The company's new strategy emphasizes a decentralized organization where teams are empowered to make decisions. With more than 50 applications, Zoho is moving towards a platform model to improve user experience and meet enterprise needs. Zoho plans to grow organically through word-of-mouth referrals and increased marketing efforts. It aims to expand into specific industries and regions, tailoring its approach based on local cultures and market needs. The firm is committed to corporate responsibility by investing in local communities, providing education, and creating opportunities for underserved groups. This approach supports Zoho's aim to build a diverse service model. Zoho intends to continuously enhance its AI capabilities, integrating both its proprietary AI models and third-party technologies. The company's recent AI developments were showcased at ZohoDay, including enhancements to its Zia platform. Overall, Zoho's challenge is balancing its unique, customer-focused approach with the demands of larger enterprise clients. The company intends to maintain its commitment to innovation and governance as it expands within the enterprise market.