The number of SIP users will grown from 7.2 million in 2010 to 59.1 million by 2017.

4 Factors Driving SIP Migration

Date: May 29th, 2014
Author: John Putnam
Tags: SIP, unified, communication, technology, POTS, trunking

It’s estimated that by 2017, the number of SIP users will have grown from 7.2 million in 2010 to 59.1 million[1]. But why such a massive increase? To answer that question is to understand where the telecom industry is going in regards to voice technology, and that’s an important thing to know if you’re a business owner. After all, the telephone is often the front line between you and your customer. So, let’s take a look at the four factors driving SIP migration…

                                                                                                                                         

The death of POTS
Thanks to a strong push from providers, plain old traditional [phone] service (POTS) is disappearing. The reasons are numerous: decaying infrastructure, lack of new technicians trained on repairing/maintaining traditional phone technology and higher overhead costs associated with POTS technology, just to name a few.

While this may not have a huge impact on larger businesses with more complicated phone systems, small businesses will have to adapt. Many, if not most of them, will look toward a SIP solution to replace dying communication technology.

Short- and long-term cost savings
Because of the consolidation of communication infrastructure associated with SIP lines and SIP trunking, business save on overhead – there is less equipment for them to maintain and house, and the technology simply costs less to implement. When considering the long-term implications of SIP migration, one report estimates businesses will generally see a 60% reduction in telecommunications costs[2] after they migrate to SIP.

Enabling unified communications (UC)
Utilizing Internet Protocol for voice communication opens the door for integration of voice and other communication mediums on the same network. UC technology can provide access to voice, instant messaging and video conferencing from one interface on desktop computers or even mobile devices. When implemented properly, this can have a big impact on workplace efficiency.

Functionality and practicality
The bottom line is SIP technology just offers businesses more optimized communication capabilities. The ability to control and balance traffic, capacity and call routing; the ability to more easily scale the number of lines up or down to meet business demands, and greater internal control of every communication medium in use is simply more appealing from a usability perspective.

 

You can read more about SIP in the latest Powernet white paper, co-authored by Network Design Engineer Justin Rice and myself, available for download here.

 

[1] Frost & Sullivan, 2011.

[2] SIP Trunking: Second-Wave Benefits. Ovum, 2011.