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SIP Trunking Services Gaining Momentum as Part of the Managed Infrastructure Movement

July 06, 2015

There was a time not long ago when enterprises and service providers interested in using or offering VoIP and IP-based unified communications services were required to have a session border controller (SBC) to handle the packet conversion. The SBC very simply sat at the edge of the network and handled signaling information to properly setup and handle calls, and was a very necessary requirement for dealing with VoIP-based calls in volume.

Times have changed and telecom operators and service providers are constantly adopting new technologies to simplify their operations, contain capital expenditures and generate new revenue streams from value-added services. SBCs, by their very nature, are legacy pieces of equipment requiring continuous upkeep and maintenance. Beyond that, they must interwork with other important components of the network like firewalls and SIP trunks, which are other important variables in successfully originating and terminating VoIP calls.

SIP trunks enable service providers to extend VoIP and UC functionality to their customers. They carry a variety of real-time communications services like conferencing, IM and other multimedia messaging. One of the key benefits of the new cloud-based “as-a-service” delivery model is that SIP trunking is now being offered as a hosted and managed service.

What this means is that enterprises and service providers alike may now purchase SIP trunks on a hosted, as-a-service basis, freeing them from the burden of infrastructure management and maintenance. The hosted platform provider offers the SBC functionality and service providers can pass along the services – and savings to their customers. Larger multi-site enterprises benefit as well, typically purchasing only the trunks they need to handle current call volume, with the flexibility to scale up or down as their needs change.

SIP trunking as a service isn’t just hype, and Infonetics Research forecasts the market for SIP trunking services amassed a healthy $4.4 billion last year, and is expected to reach $8 billion worldwide by 2018.

“There is no denying the world is moving to IP, and SIP has become the de facto solution of choice for businesses for IP connections,” said Diane Myers, principal analyst for VoIP, UC and IMS at Infonetics. “In North America, slightly more than 20 percent of the installed business trunks are SIP trunking today, with significant upside opportunity.”

Infonetics also finds that SIP trunking is being offered alongside hosted PBX and UC solutions as both enterprise and service providers look for hybrid communication offerings for their own usage as well as to offer to customers and subscribers. The move to IP-based communications is well underway, and SIP trunking is playing a large part in it as organizations look for comprehensive multimedia solutions with greater functionality. Being able to purchase SIP trunking as a service affords cost savings, quality of service and a host of additional benefits that make good sense for any organization interested in adopting IP-based communications.

Edited by Stefania Viscusi

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