SHARE



ABOUT THE AUTHOR


John Malone
John Malone is the president of The Eastern Management Group, a communications industry market research company. The firm supports more...
Read Full Bio >>
SHARE



John Malone | May 02, 2017 |

 
   

SIP Market Growth Strong to 2020

SIP Market Growth Strong to 2020 New Eastern Management Group study reflects input from more than 3,500 IT managers surveyed worldwide.

New Eastern Management Group study reflects input from more than 3,500 IT managers surveyed worldwide.

As we show in Eastern Management Group's newly released SIP forecast, 2017 SIP trunk and phone growth will beat that of IT, and do so consistently through 2020.

Source: Proprietary Eastern Management Group SIP research

The global regions with the fastest SIP growth are and will remain Asia Pacific and the Middle East and Africa. The growth rate in these regions is much stronger than in either the U.S. or Europe, both of which, while maturing, still exceed that projected for the whole IT market during the forecast period -- by at least 50%.

The SIP market forecast comes from Eastern Management Group's new syndicated research report, SIP Global Market and Analysis and Forecast 2016-2020. The study reflects input from more than 3,500 IT managers surveyed worldwide.

Already in 2017's first and second quarters, the global SIP market for services and products is turning in strong sales performance.

Since Eastern Management Group's earlier SIP study, published in 2013, the market has experienced many changes that are driving sales of SIP trunking, VoIP phones, and related products and services.

The New Drivers behind SIP
Cost is now the big driver behind today's SIP sales. It displaces "anytime, anywhere communications" as the key catalyst.

SIP trunking easily costs 50% less than traditional networks. Furthermore, SIP trunk prices are dropping 5-7% annually. While unstable SIP quality may have hurt sales at one time, such is not the case today. This is a recent finding of a SIP customer satisfaction survey by the Eastern Management Group. In that global study, we surveyed thousands of SIP trunking customers of more than 30 service providers.

Street prices and the even lower deal prices for SIP equipment, like SIP phones, are also coming down every year, based on Eastern Management Group SIP pricing studies.

Eight More SIP Drivers
Many other strong catalysts are driving SIP sales besides cost. We'll look at eight of them.

  1. Cloud and Hosted PBX Sales -- Hundreds of service providers are now in the hosted VoIP market. The remarkable growth rate of hosted PBX has VoIP phone sales soaring. SIP trunks complement cloud applications, so the growth of cloud sales is propelling SIP trunk demand.

  2. Erosion of Proprietary Phones -- Employees and companies have lots of devices that must link to each other. Many proprietary IP phones fall short of interoperating with open standards systems. Several phone system providers now produce best-of-breed, interoperable, open standards SIP devices.

  3. Unified Communications -- Eight unified communications applications play a large role creating SIP demand. These are VoIP, unified messaging, instant messaging/chat, presence, fixed-mobile-convergence, conferencing, single reach number, and out-of-area numbers. Demand will grow for these and other UC applications through 2020. This is good for driving SIP growth.

  4. Collaboration -- Real-time collaboration is increasing. In our 2011 SIP study, Eastern Management Group found 39% of IT managers reporting that collaboration was important. Today, 62% of IT managers say that collaboration technologies will be important to their businesses by 2018. Collaboration, including video, thrives on SIP.

  5. Go-to-Market SIP Strategy -- Ever since Eastern Management Group has been developing channel strategies for SIP providers, we have witnessed evolution in SIP go-to-market strategies. This has put more SIP feet on the street, and increased the number of provider solutions.

  6. Full-Service Providers -- The intensity of SIP competition, eroding margins, and new services has created a demand for full-service SIP providers. While many of them may use another provider's network, this is often unimportant to the customer. Full-service providers offer a broad portfolio of products, services, and software of value to the SIP customer.

  7. Ecosystem Partners --These partners may not be in the SIP business per se, but they may offer products that complement those of a SIP provider, as well as offer differentiation and new revenue streams to the SIP provider.

  8. Managed Services -- These annuities are incremental revenue and profit for the SIP provider. Managed WAN, LAN, security, and video are complementary to the SIP providers' offers.

All these drivers, and more, are pushing SIP sales to new levels. While most end users have at least some SIP elements today, it may be 10 or more years before SIP demand lessens. During this continuing evolution, the market will change. This will usher in more providers, and SIP solutions, in a perpetual motion-like effect.

For questions about the SIP study, please ask our researchers at the Eastern Management Group.

John Malone is writing on behalf of The Eastern Management Group, a communications industry market research company of which he is president.





COMMENTS



Enterprise Connect Orlando 2018
March 12-15 | Orlando, FL

Connect with the Entire Enterprise Communications & Collaboration Ecosystem


Stay Up-to-Date: Hear industry visionaries in Keynotes and General Sessions delivering the latest insight on UC, mobility, collaboration and cloud

Grow Your Network: Connect with the largest gathering of enterprise IT and business leaders and influencers

Learn From Industry Leaders: Attend a full range of Conference Sessions, Free Programs and Special Events

Evaluate All Your Options: Engage with 190+ of the leading equipment, software and service providers

Have Fun! Mingle with sponsors, exhibitors, attendees, guest speakers and industry players during evening receptions

Register now with code NOJITTEREB to save $200 Off Advance Rates or get a FREE Expo Pass!

September 20, 2017

Customer experience can make or break your business. But how do you achieve outstanding customer service when you're dealing with outdated organizational structure, lagging technology, dated proces

August 16, 2017

Contact centers have long been at the leading edge of innovation in communications technology, given their promise of measurable ROI and the continual need to optimize customer interactions and sta

July 12, 2017

Enterprises have been migrating Unified Communications & Collaboration applications to datacenters - private clouds - for the past few years. With this move comes the opportunity to leverage da

September 8, 2017
Greg Collins, a technology analyst and strategist with Exact Ventures, delivers a status report on 5G implementation plans and tells enterprises why they shouldn't wait to move ahead on potential use ....
August 25, 2017
Find out what business considerations are driving the SIP trunking market today, and learn a bit about how satisfied enterprises are with their providers. We talk with John Malone, president of The Ea....
August 16, 2017
World Vision U.S. is finding lots of goodness in RingCentral's cloud communications service, but as Randy Boyd, infrastructure architect at the global humanitarian nonprofit, tells us, he and his team....
August 11, 2017
Alicia Gee, director of unified communications at Sutter Physician Services, oversees the technical team supporting a 1,000-agent contact center running on Genesys PureConnect. She catches us up on th....
August 4, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, has lately been working on integrating enterprise communications into Internet of Things ecosystems. He shares examples and off....
July 27, 2017
Industry watcher Elka Popova, a Frost & Sullivan program director, shares her perspective on this acquisition, discussing Mitel's market positioning, why the move makes sense, and more.
July 14, 2017
Lantre Barr, founder and CEO of Blacc Spot Media, urges any enterprise that's been on the fence about integrating real-time communications into business workflows to jump off and get started. Tune and....
June 28, 2017
Communications expert Tsahi Levent-Levi, author of the popular BlogGeek.me blog, keeps a running tally and comprehensive overview of communications platform-as-a-service offerings in his "Choosing a W....
June 9, 2017
If you think telecom expense management applies to nothing more than business phone lines, think again. Hyoun Park, founder and principal investigator with technology advisory Amalgam Insights, tells ....
June 2, 2017
Enterprises strategizing on mobility today, including for internal collaboration, don't have the luxury of learning as they go. Tony Rizzo, enterprise mobility specialist with Blue Hill Research, expl....
May 24, 2017
Mark Winther, head of IDC's global telecom consulting practice, gives us his take on how CPaaS providers evolve beyond the basic building blocks and address maturing enterprise needs.
May 18, 2017
Diane Myers, senior research director at IHS Markit, walks us through her 2017 UC-as-a-service report... and shares what might be to come in 2018.
April 28, 2017
Change isn't easy, but it is necessary. Tune in for advice and perspective from Zeus Kerravala, co-author of a "Digital Transformation for Dummies" special edition.
April 20, 2017
Robin Gareiss, president of Nemertes Research, shares insight gleaned from the firm's 12th annual UCC Total Cost of Operations study.
March 23, 2017
Tim Banting, of Current Analysis, gives us a peek into what the next three years will bring in advance of his Enterprise Connect session exploring the question: Will there be a new model for enterpris....
March 15, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, discusses the evolving role of the all-important session border controller.
March 9, 2017
Organizer Alan Quayle gives us the lowdown on programmable communications and all you need to know about participating in this pre-Enterprise Connect hackathon.
March 3, 2017
From protecting against new vulnerabilities to keeping security assessments up to date, security consultant Mark Collier shares tips on how best to protect your UC systems.
February 24, 2017
UC analyst Blair Pleasant sorts through the myriad cloud architectural models underlying UCaaS and CCaaS offerings, and explains why knowing the differences matter.
February 17, 2017
From the most basics of basics to the hidden gotchas, UC consultant Melissa Swartz helps demystify the complex world of SIP trunking.
February 7, 2017
UC&C consultant Kevin Kieller, a partner at enableUC, shares pointers for making the right architectural choices for your Skype for Business deployment.
February 1, 2017
Elka Popova, a Frost & Sullivan program director, shares a status report on the UCaaS market today and offers her perspective on what large enterprises need before committing to UC in the cloud.
January 26, 2017
Andrew Davis, co-founder of Wainhouse Research and chair of the Video track at Enterprise Connect 2017, sorts through the myriad cloud video service options and shares how to tell if your choice is en....
January 23, 2017
Sheila McGee-Smith, Contact Center/Customer Experience track chair for Enterprise Connect 2017, tells us what we need to know about the role cloud software is playing in contact centers today.