SIP is the RAGE

Over the weekend, I received an email from a VAR with the tag line "SIP is the RAGE".

Wow!

 Additionally, he had read my blog. (Sometimes as I type these up, I think the only people reading this are my immediate family and co-workers. And they because I ask.) However, this person had read my comments regarding Broadvox's efforts to transmit Faxes over our IP network using T.38. He was interested in seeing if we were serious. The answer, a resounding, yes, but today's blog is about his tagline, "SIP is the RAGE".

VoIP using SIP Trunking is growing at a very rapid rate. The market looks a bit like this:

438,000 IP PBXs were shipped worldwide in 2008 according to IDC. This means that around 180,000 of these were sold in North America. Given that, most of these installs support internal VoIP over a dedicated LAN or WAN, it is an opportunity for ITSPs like Broadvox to sell SIP Trunking services. It is also an opportunity for VARs to find new buyers by raising the visibility of this trend.

Why is SIP the RAGE? Initially, buyers are attracted to the price difference between VoIP/SIP and TDM. However, as buyers want to leverage their new IP PBX purchases, quality and feature support become the new drivers. Although, bit overused and needing more applications, Unified communications will benefit from the deployment of SIP trunks.

Frost and Sullivan estimate that SIP Trunking lines will grow from 950,000 in 2006 to 14.5 million in 2012. This is enormous projected growth year after year. Now, given the current economic situation, I suspect that 2009 and will grow a little less than earlier forecast. This is due to the slowing of CapEx spending for new CPE like an IP PBX. However, we continue to see growth in our SIP Trunking revenues with quarter after quarter setting new highs.

So who is buying SIP Trunks? That's definitely worth a bit of discussion.

Check it out on Friday.