Why is the SIP Market is in a Growth Pattern?
Finding growth markets these days isn’t an easy task, but new word from the Eastern Management Group suggests that there may be one market that’s looking at some real growth ahead.
The session initiation protocol (SIP) market is set to not only grow through 2020, but will also grow faster than the entire information technology (IT) market itself.
Growth by the Numbers
The Eastern Management study called on word from over 3,500 IT managers worldwide, and revealed not only the expectation of growth, but a projection of growth rates as well. While the IT managers projected growth for the IT field in general, and a fairly decent 4.1 percent at that, it expected nearly double that for SIP trunk growth at 7.3 percent.
For SIP phone growth, it was even greater, approaching triple the IT spend growth at 11.9 percent. Growth is expected to be fastest in the more developing market regions, like the Asia-Pacific and Middle East and Africa segments. Growth will be evident roughly everywhere, even in the United States and Europe, regarded as “maturing” markets, but will be much faster in the aforementioned sectors.
What’s Fueling this Growth?
The biggest driver behind the rapid growth of SIP is unequivocally cost. With SIP trunking averaging around half the cost of a traditional network, and dropping routinely—SIP trunk prices are dropping an average of five to seven percent a year—SIP is increasingly seen as both a bargain and a good investment. While SIP quality was notorious for being spotty in years past, customer satisfaction is on the rise, as an earlier Eastern Management study revealed.
That’s not all the reason for growth, of course. Several other reasons are driving gains, like the rise of hosted and cloud-based private branch exchange (PBX) operations, offering complementary services alongside SIP trunks. Throw in the rise of unified communications (UC) operations, the steady commoditization of phones that no longer refuse to play well with others in interoperability testing, along with several other points, and it becomes clear why SIP is on a growth tear.
That Closer Connection
Communications has a great potential for improving profitability, a point evidenced by increasing involvement in the market. The discovery that video conferencing could be a replacement for business travel on at least some fronts has spurred growth by itself, and there’s more where that came from.
Whether it’s saving money or improving profitability, SIP trunking has all the elements to deliver value. That’s great news for companies like thinQ as well, which have a great opportunity here to present product to eager customers. With a variety of related services available, including least-cost routing (LCR) systems, thinQ has a lot of what’s needed to really get the most out of the growth in the SIP market. Those planning to put SIP trunking to use, therefore, will do well to start talking to thinQ.