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Sangoma Leader in SIP Trunking for Small Businesses
Out of 29 SIP trunking companies examined in the Eastern Management Group’s latest SMB customer survey, none beat Sangoma. No vendor other than Sangoma received the highest possible ranking — four stars — in every customer satisfaction category.
If you’re not familiar with Sangoma — or maybe it’s been a while since you were — you may want to brush up… or catch up. The $100 million voice and UC solution provider is on a bit of a tear. Sangoma’s revenue has grown by 53% (CAGR) each year since 2017, and it got another healthy boost when it acquired Digium last September. Sangoma’s gross profit is around 60%, and the business currently spends a customer-comforting 18% of revenue on research and development.
Let’s Talk SIP
Apart from the company’s good financials, Sangoma further distinguishes itself in SIP trunking customer satisfaction. In Eastern Management Group’s “2019 SMB SIP Trunking Customer Satisfaction” survey, no competitor beat Sangoma, which stands at the pinnacle of the satisfaction leader board.
The Eastern Management Group’s 2019 satisfaction survey of 3,000 IT managers shows a side-by-side comparison of 29 SIP trunk providers. SMB customers (from one to 500 employees) evaluated their SIP vendors on six Customer Satisfaction Measurements under the headings of product, vendor experience, and customer delight.
In Eastern Management Group’s customer survey, Sangoma received the highest possible ranking — four stars, in every customer satisfaction measurement: technology and product, purchase experience, support, management tools, total overall satisfaction, and recommend-to-a-friend.
Sangoma is one of the scores of providers in the $14.4 billion (2018) SIP trunk market — a market that’s growing 7% yearly — and will continue doing so. The SIP market itself is catapulted by cloud growth, enterprise branch office openings, high PSTN prices, and the inevitable POTS end of life, which are addressed in the Eastern Management Group report "2018-2024 SIP Market 7-Year Forecast and Analysis."
Sangoma is an established provider of hardware and software that drives IP communications systems for telecom and datacom applications. The company, which launched in 1984, sells to SMBs and carriers in 150 countries. Well-known Digium is a Sangoma subsidiary, making Sangoma the primary developer and sponsor of the open-source Asterisk project.
Based on Eastern Management Group’s customer survey research, 95% of Sangoma SIP trunk customers are SMBs having fewer than 500 employees; that’s more than the SIP trunk industry average of 83%. Sangoma’s largest customer cohort is businesses with 11 to 50 employees; this may account for a third of Sangoma’s SIP customer base.
Sangoma customers are well distributed across the 20 vertical markets Eastern Management Group tracks. Sangoma has a broader vertical market reach than many competitors. Our research finds considerable Sangoma SIP trunking sales to businesses in the professional services, retail, and transportation markets.
Product and Value
SIPStation is Sangoma’s SIP trunking offer. The company checks all the essential boxes with SIP features:
- Choose your own phone numbers
- Send and receive faxes
- T.38 faxing & SMS
- Share voice services across multiple locations
- Add lines at any time — no contracts required
- Create high-volume SIP trunks that are fax- and SMS-compatible
Sangoma’s elevator pitch for SIP is a good one, and the customer benefits include:
- 21-day free trial
- Cost savings with three-year, one-year, and monthly contracts
- Integrated with the FreePBX and PBXact systems
- Integrated fax services
It’s our opinion that Sangoma has made a very good name for itself. It has all the trappings of a hands-on company: The CMO blogs weekly, talking as if to a family. Sangoma operates just like a small business — and that’s nice to report on.
The research used in this post comes from the following Eastern Management Group sources: "2019 SIP Trunking Customer Satisfaction" report and models, and “2018-2024 SIP Global Market 7-Year Forecast and Analysis.” For more information on these studies and reports, please contact our analyst team or John Malone directly at 212-738-9402 Ext. 2201 or [email protected].