At the ZohoDay 2026 event, Zoho showcased how its AppOS platform integrates AI and low-code automation to address the challenge of fragmented enterprise applications. As a self-funded private company celebrating its 30th anniversary, Zoho boasts over a million customers and emphasizes enhancing business efficiency through a unified strategy.
AppOS serves as a reliability layer to combat agent fragmentation, aiming to unify over 50 business applications and thousands of integration suites. CEO Mani Vembu noted, "Many customers report using over 200 applications, making it difficult to quickly adjust functionalities to meet needs, which increases complexity. We need a stronger reliability layer to support differentiation." With the surge in generative AI and coding agents, the AppOS strategy provides a unified semantic integration, development, and data platform, facilitating human-agent collaboration while focusing on data sovereignty and privacy.
AI agents will not replace SaaS solutions but may trigger industry consolidation. Zoho's Chief Strategy Officer Vijay Sundaram stated, "AI has shifted from experimentation to operationalization, and we are beginning to see consolidation of best-of-breed solutions. Systems of record and APIs have become strategic assets, requiring integration to link AI projects with outcomes." Deloitte predicts that by 2027, 40% of agentic AI projects will fail, with only those adding business value surviving.
An architecture-first AI integration approach leverages core systems and low-code tools, such as Zoho Creator and Zoho Flow, as a foundation for AI agents. Mo Umerji, Enterprise Architecture Lead at Newcross Healthcare Solutions, said, "With Zia AI and Zoho, our data remains within a closed ecosystem, which is crucial for industries like healthcare." Zoho is also introducing small language models to optimize costs and sustainability. AI Research Director Ramprakash Ramamoorthy added, "We are introducing system constraints into AI logic, allowing customers to adjust model size based on their work context."
Through partnerships with domain-specific experts, Zoho is achieving rapid growth in channel revenue across regions like Asia, Africa, and Latin America. The Vertical Studio tool supports building vertical-specific solutions, such as law firm operations and automotive dealership management. Catherine Carignan-Turcotte, Chief Business Development Officer at NSI Solution, said, "Zoho allows us to extend systems within Vertical Studio according to client specifications, configure applications, and push updates via rapid deployment." The privacy-first positioning and data sovereignty strategy are paying off in international markets.
The AppOS platform leverages AI and low-code automation to enable humans with domain expertise to deliver value. Jeff Anderson, IT Vice President at INTEGRIS Credit Union, summarized, "Zoho is our force multiplier. We are no longer seeking best-of-breed applications, but rather applications that can communicate with each other and integrate new processes to add value for customers." By integrating AI and low-code automation through AppOS, Zoho aims to simplify enterprise operations and drive innovation.
