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Demand for Unified Communications Fuels SIP Trunking Growth: Report


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November 17, 2009

Demand for Unified Communications Fuels SIP Trunking Growth: Report

By Amy Tierney, TMCnet Web Editor

The ongoing demand by enterprises using unified communications applications will spur network operators to boost their investment in Session Initiation Protocol (News - Alert), or “SIP” trunking technologies, a new report found.

The “SIP Trunking: Market Strategies & Competitive Analysis” report by Light Reading Insider, found that SIP trunking continues to catch attention of carriers, end users and IP PBX (News - Alert) vendors. And while the biggest draw to SIP trunking services is cost cutting factors, the technology’s ability to deploy UC across the enterprise and provide hosted services will be future drivers, the report said.
"SIP trunking is taking market share as end users are becoming educated on its benefits," Denise Culver, research analyst with Light Reading (News - Alert) Insider and author of the report, said in a statement. "Meanwhile, service providers are seeing more competition from new IP service providers, as well as feeling more pressure from the stringent requirements that enterprises require from their SIP trunking solutions."
That’s good news for companies like AireSpring, a Los Angeles, Calif.-based SIP provider. The company is one of the fastest growing telecommunications carriers in the nation. It offers a variety of local and long distance calling services at top rates on its next generation IP network. It processes more than 4 billion call records each year. In addition to SIP trunking, the full service communications firm offers market-leading long-distance, local and data solutions that provide companies with tailored, cost effective services.
In particular, SIP trunking providers are targeting contact centers and IVR-dependent companies – organizations that fall in the so-called "sweet-spot" markets. Customers looking to deploy Sip trunking services want to combine their communications services and eliminate redundancies, the report said.
Light Reading Insider’s report examines the SIP trunking market and includes an analysis of solutions that explores essential features, how they work, competitive differentiators, marketing strategies, and partners. The report also investigates the benefits and challenges of SIP trunking, including how carriers, enterprises, and SMBs benefit from the service.
As the momentum for UC builds, SIP trunking will become “a natural step” in the development of IP-based telecom services, according to Culver.
"Network managers can consider migrating the deployment to a client/server architecture, enabling UC servers to be located in the corporate data center," she said. "In the end, there is little question that SIP trunking will become a major force for service implementation."
Light Reading Insider’s report supports earlier research from Infonetics Research (News - Alert) that found that SIP trunking is on the rise. According to that research, by 2010, SIP trunking will likely become the second most commonly deployed trunking service.
For more on SIP-related news, visit the AireSpring’s SIP channel here on TMCnet.

Amy Tierney is a Web editor for TMCnet, covering business communications Her areas of focus include conferencing, SIP, Fax over IP, unified communications and telepresence. Amy also writes about education and healthcare technology, overseeing production of e-Newsletters on those topics as well as communications solutions and UC. To read more of Amy's articles, please visit her columnist page.

Edited by Amy Tierney

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