SIP trunking offers a number of clear benefits over other TDM connectivity options, including reduced business expenses.
It augments many of the benefits we associate with IP telephony and unified communications in general, making it a great option when you’re upgrading your premise-based communication systems, as many businesses know based on a recent analyst statement. from Infonetics.
SIP on the rise
Analyst Dian Myers recently analyzed the field of VoIP and UC and made some clear predictions about its future. Most notably, Myers predicted that SIP trunking would be the fastest growing segment of the VoIP market between now and 2017, a market that is also expected to reach $82.7 billion by 2017.
Where did Myers get these lofty numbers?
Well, for starters, SIP trunking grew dramatically over the past year, with revenue seeing a whopping 83% increase in 2012 alone.
However, even with the massive growth of last year, their market still has a lot of room to grow. At the moment, the technology only has a 15% penetration rate within North American enterprise-level organizations. With 85% of the market still open for acquisition, and with the technology’s close ties to the accelerating UC and IP telephony markets, it seems pretty obvious that this technology will likely continue to scale high and fast for years to come.
After all, SIP works best with UC and remotely hosted VoIP services, and these services represent the fastest growing segment of the burgeoning global VoIP market (growing 17% year-over-year compared to 9% year-over-year). year over year in 2012).
What is SIP Trunking and how does it connect to remote VoIP and UC?
The “SIP” in SIP trunking stands for “Session Initiation Protocol”, and all of this is just a fancy way of saying that SIP trunking is capable of connecting a wide range of different communication devices using the SIP protocol. SIP is used to easily connect different proxies, softphones, hardware phones, telephone gateways, servers, PBX systems, video conferencing technologies, messaging and chat systems, or other pillars of modern communication networks.
Basically, SIP trunking offers a fantastic connectivity option to combine all the different elements of modern UC and IP telephony systems.
Traditional TDM trunking tends to run data and voice transmissions over separate dedicated path structures, while VoIP trunking (whether using SIP, MGCP, or any other IP-based protocol) allows both forms of transmission. run on the same path. SIP trunking offered greater flexibility and resource management, allowing more VoIP calls to be made than other VoIP protocols, such as H.323, which often struggled to handle spikes in incoming call volume. While these systems performed well during times when voice and data transmissions remained constant, they did less well in handling fluctuations in information coming in one or both ways.
SIP and UC trunking systems go hand in hand, and if you’re looking to adopt a hosted PBX or UC system, it’s a good idea to understand how SIP trunking works. This technology reduces costs and increases network flexibility.