The Rise of SIP Trunking

sip trunking

2013 has been a fast-moving year for business communications. So take a deep breath over the holidays, and then get ready for more in 2014. If anything, the pace of change will only increase. One of the many fast emerging trends is the rise of SIP Trunking, and new research indicates that we should expect SIP to become more prominent in the year ahead.

First, here’s a look at where we stand. According to recent research from Infonetics, SIP Trunking deployment took off in 2013. Based largely upon a spike in the North American market, global deployment of SIP Trunking grew by 23 percent in the first half of the year.

It’s easy to see the rationale behind this surge. SIP Trunking provides small and medium-sized businesses with significant cost savings on voice communications, as well as enhanced flexibility and access to unified communications offerings.

sip trunking

Those factors and what they mean for SMBs are projected to keep the SIP Trunking phenomenon in overdrive. A just-released study by global management firm Eastern Management projects that SIP Trunking deployment will continue to grow rapidly over the next four years. The Eastern survey shows that, today, 13 percent of businesses use SIP for all of their WAN traffic and forecasts that by 2018, 42 percent of companies will do so.

That’s a lot of opportunity for Interconnects and MSPs. Business customers may not understand the technology behind SIP Trunking, but they know that it offers tremendous advantages for their business. They’re hearing more about it, and they’ll be asking you about it soon (if they haven’t already).

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As Interconnects and MSPs look into their crystal balls for the year ahead, most of them likely see a fork in the road. The rise of technologies such as SIP Trunking has pushed them to a decision point; they must determine how well they can do with their existing business model or whether they should embrace new ways of conducting business.

A recent projection from Gartner is that in a little over a year, 25 percent of cloud vendors will disappear, whether through bankruptcy or merger. That’s an astonishingly high number, and should make cloud providers stop and think about whether they need to move in a new direction. If they do, SIP Trunking looks like a wise trend to embrace.

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