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Crab, Pork and an Expanding SIP Market, Good Stuff
SIP Trunking Continues to Grow

By David Byrd / David Byrd Blog
July 28, 2010

Last week, I noted that Frost and Sullivan reported a decline in overall IP Communications spending among enterprise customers. Spending was down for all systems, TDM, hybrid and IP PBXs. However, for those positioning and selling SIP Trunks there is good news indeed. Infonetics recently completed a survey showing that SIP Trunking is gaining in market share and soon will be the second-most deployed trunking type behind the ever-venerable T1. The basic facts reported by Infonetics are the following:

The number of SIP trunks provided by ITSPs worldwide more than doubled in 2009. This establishes SIP Trunking as one of the fastest growing VoIP services in 2009.
The enterprise SBC market grew 53 percent in 2009, to $61million versus the enterprise telephony market, which declined 22 percent in 2009.
SIP Trunking is the only trunking technology gaining traction. Half of survey respondents plan to use SIP trunks by 2012.

While all of that is very reassuring to Broadvox and ITSPs in general, the rationale for deciding to transition from TDM to SIP/IP communications has changed somewhat. The No. 1 reason remains the same, cost savings. As usual, I find Infonetics’ use of the word “trunk" as interchangeable with the phase “concurrent call sessions," confusing for those new to SIP. However, the discussion of purchasing concurrent call sessions one at a time versus 12-24 channels of T1 was interesting as a cost-savings component. Normally, we begin by pointing out the greater than 50 percent savings over each TDM line/circuit. Both are effective in identifying immediate and beneficial cost savings.

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