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June 29, 2009
SIP Trunking, a Foolproof VoIP Solution
By Erik Linask, Group Editorial Director
Research firm Dell’ (News - Alert)Oro Group recently reported that though overall carrier investment in infrastructure has dropped by as much as 25 percent in Q1 2009 from Q1 2008, there are a few bright spots — perhaps most notably the SIP Trunking market. For instance, just look at the number of new entrants into the SIP Trunking space, including Cablevision and Microsoft. Name like that only underscore what others in the market have long since recognized: SIP is the signaling protocol of the future (you can make the case that it’s already the protocol of the present), and SIP Trunking is a very real opportunity.
Take AireSpring (News - Alert), for instance, which made the bet — and it’s turning out to be a wise one — on SIP and SIP Trunking long ago. The company’s CEO Avi Lonstein recognized that, while the benefits businesses enjoy with VoIP in their internal communications provide value enough, that benefit can be multiplied by extending the technology to external communications as well, especially as VoIP adoption continues to climb.
Certainly, he wouldn’t be surprised at the findings from the Dell’Oro Group, having already noted that, though the economic recession would likely inhibit growth to a degree, the benefits of SIP Trunking are such that the economy could actually play into the hands of companies like his.
As businesses continue to look for ways to cut operational costs, many are finding the best option to be a PBX (News - Alert) replacement, and migrate to VoIP systems. This is particularly true in the SMB market, where the cost of entry and the complexity of deployment is significantly lower than in the enterprise market. That’s one reason SMB-focused IP PBX vendors are faring relatively well, and why SIP Trunking continues to grow as an industry.
Even before the economy took its turn for the worse, cost cutting was on the minds of most businesses, even as they continued to grow. Now, looking for ways to lower monthly costs is top priority at most companies — which is where much of the attention on VoIP and SIP Trunking originates.
For instance, with SIP Trunking providing end-to-end IP connectivity between the business network and the carrier network, companies no longer have a need to pay for BRIs or PRIs, meaning they don’t have to pay for capacity they don’t necessarily use. Instead, they can easily increase and decrease their IP network capacity as they grow, or as peak periods demand. In fact, many businesses don’t even have to increase their bandwidth, as they already have more than they use for typical Web traffic, so they can add their SIP Trunking services without adding bandwidth for even greater savings.
SIP Trunking also has the benefit of LCR (least cost routing) capabilities, which ensure that calls can be routed via some combination of the most efficient and least expensive path. AireSpring, for instance, does this through its multi-carrier diversity option, which allows customers to allocate outbound traffic across multiple carriers to provide the best rates for any given call. This has the added built-in benefit of creating service redundancy, should a switch with one carrier fail.
Furthermore, SIP Trunking embraces the new wave of communications, enabling communications alternatives not possible with traditional solutions, like IM, chat rooms, and video communications, all of which are growing rapidly as businesses learn how to leverage them to enhance productivity while lowering costs — especially travel expenses.
These direct cost efficiencies gained through SIP Trunking are easily understood by any business, which is a large part of why SIP Trunking providers are enjoying success, even in the most challenging times. When you factor in the less measurable productivity benefits enabled by all-IP communications, including the availability of various other SIP-based communications applications, the case is nearly foolproof — recession or not.
To learn more about the benefits of SIP Trunking, and the full set of solutions AireSpring offers to help businesses cope with the economy, join the company at its booth (#329) at ITEXPO West in Los Angeles, September 1-3, 2009.
Erik Linask (News - Alert) (News - Alert) is Group Editorial Director of TMC, which brings news and compelling feature articles, podcasts, and videos to more than 2,000,000 visitors each month. To see more of his articles, please visit his columnist page.
Edited by Erik Linask
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