SIP...It's the RAGE Part II or Who's Buying?

David Byrd : Byrd's Eye View
David Byrd
Chief Marketing Officer for ANPI

SIP...It's the RAGE Part II or Who's Buying?

Always an interesting question. What we know is that no vertical market is superseding another in the adoption of VoIP/SIP.  Analysts in particular look for some type of vertical trend. They find it difficult to believe that a given industry is not more focused on the transition than another is. I find it rather simple to explain. It is a phone line. Every business has one. It is much more the case of the technological savvy of the owner, the solution presented by the VAR and perhaps the airline magazine phenomenon.

In the early 90's corporations were often influenced by what a senior executive read as the latest trend in an airline magazine when they either took a break from work or ran out of reading material. I think the phenomenon is not as great today, given most passengers seem to grab the SkyMall magazine for those few precious minutes of relaxation.

Enough of that. You want some facts...Infotech estimates that SMBs will spend nearly $9 billion in 2010 on Internet phone systems. That estimate was made before the current recession so let's reduce it by 10-15% and it is still a big number. Moreover, 40% of SMBs believe they should make the transition to VoIP for the cost savings alone. If they do not have an IT infrastructure, moving to a hosted IP PBX service is a good alternative. Additionally, most hosted VoIP services are moving to SIP for the improved voice quality, reliability and application support. Broadvox and other ITSPs win in either case.

For those of you looking to sell into the enterprise segment of the market, the numbers are even more favorable. Nearly 90% of enterprises use VoIP today for their internal communications. However, most are not fully IP enabled. Consequently, this opens a window of opportunity for VARs to expand the enterprise's IP infrastructure and to develop an ROI to prove the cost-effectiveness of transitioning all external communications away from TDM to IP.

Finally, the market share for TDM PBXs is less than 10% today and falling. Any OEM still trying to eke out profits on TDM platforms will be going the way of the dinosaur or Nortel (okay, that wasn't fair).

So...Who is buying? Every size business is buying. Every type of business is buying. The real question is "Who is selling?" Do you position your product mix to offer the best solution for the future or are you selling only in your comfort zone? The number of IP solutions out there is only growing. New announcements by Panasonic and Toshiba just in the last few weeks show their growing commitment to IP Communications. There are two new open source platforms gaining market share, FreeSWITCH and Elastix. The market is rapidly moving towards VoIP/SIP Trunking. A VARs best move is to get on board and make some money. A businesses best move is get on board and save some money. Everybody wins!

My message is "SIP is on the Fast Track", but it was nice to see "SIP ...It's the RAGE!"

See you on Monday with a great Dessert!



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