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What is SIP Trunking and How Can My Business Benefit?

Posted by Allison Boccamazzo on Jun 29, 2016 1:49:11 PM

At this point, many business owners have heard of SIP trunking; however, they may not fully understand what the technology entails. That means they may not know if their business can benefit from it.

So, what is SIP exactly? SIP, or Session Initiation Protocol, is fundamental technology for signaling and controlling multimedia communications. To this end, a SIP trunk is not all too different from a traditional phone line. The biggest difference is that a SIP trunk eliminates the need for a physical wire, instead allowing businesses to operate using “virtual” phone lines provided by a SIP trunk provider. This provider uses a company’s data circuit (i.e. T1, cable, DSL) to connect its phone system back to their network. sip_trunking.jpg

A recent study conducted by The Eastern Management Group found that as of 2013, 13 percent of businesses were using SIP to manage 100 percent of their WAN traffic. By 2018, 42 percent of businesses are expected to be sending all of their traffic through SIP trunks.

A Few Questions to Tell if Your Business Can Benefit from SIP Trunking

To better understand whether your organization can benefit from SIP, take a moment to answer the following questions:

  • Does your organization currently allocate a large portion of its IT budget to maintaining physical hardware—specifically, physical phone lines?
  • Are you considering migrating from a legacy phone system to a cloud-based system?
  • Are CAPEX costs typically higher than OPEX costs for your organization?
  • Are you interested in deploying a more advanced unified communications system?

If you answered “yes” to any of the above questions, then your business is ideally suited for SIP trunking. Here’s why:

Research shows that businesses can spend up to 75 percent of their IT budget on legacy maintenance and monitoring. By removing older physical phone lines, SIP trunking enables businesses to drastically reduce maintenance-related costs. Furthermore, the digital nature of SIP trunks enables businesses to more flexibly deploy advanced UC systems in order to take advantage of must-have features like presence, unified messaging and IM.

If you think SIP trunking is right for your business, click here to see what most people consider before selecting and implementing a new SIP trunking provider.


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Topics: SIP Trunking, Entrepreneurship

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