SIP Trunking as a Service is the Future

By Arti Loftus November 14, 2022

More and more service providers and enterprises are moving up from SIP Trunking to SIP Trunking as a Service (STaaS) for many good reasons. Among the drivers is the growth of telco cloud, and the availability of “Infrastructure as a Service,” which means that end customers no longer need to worry about equipment, software, multiple vendor integration, and all the related costs associated with previous complexity.

Transparency Market Research just published a forecast for SIP trunking services, which is projected to reach over $43 billion by 2031. Transparency Market Research pegged the market at SIP Trunking Services market, without breaking down SIP Trunking and STaaS this way:

  • The global SIP trunking services market was valued at $11.96 billion in 2021
  • It is estimated to advance at a CAGR of 14.1% from 2022 to 2031
  • The market is expected to reach $43.74 billion by the end of 2031

The “best SIP trunking service providers are leaning on attracting customer demand by offering outstanding customer support in conjunction with low-cost and high-quality services,” the report says. “A flexible pricing strategy and a large number of features offered will catalyze demand, thereby boosting SIP trunking market size.”

Key findings from the report include:

  • Rising adoption of VoIP services steering market growth: Organizations are provisioning voice over IP (VoIP) for dedicated voice connections for business applications. Massive demand for VoIP and PSTN lines for transmitting data as well as voice service has created vast lucrative avenues in the SIP trunking services market. The demand for SIP trunking services is expected to thrive among small and medium enterprises sectors. Furthermore, the demand for cloud communications solutions in emerging economies, notably in the Middle East and Africa, will open up new revenue streams in SIP trunking services market.
  • Massive demand for UCaaS and cloud-based communications services underpins tremendous growth opportunities: Unified communications-as-a-service (UCaaS) offers the benefits of audio and video conferencing and instant messaging/chat. Of note, the study on the SIP trunking services market found that the SIP trunking services market outlook is enriched by steady adoption of cloud collaboration and communication services. Continuous adoption of UCaaS is bolstering SIP trunking providers’ market shares. UCaaS offers enterprises considerable performance and productivity gains. Of note, in key markets such as Europe, large enterprises are leveraging UCaaS to drive top-line growth.

We caught up with Jay Patel, Chief Product Officer, Kandy (News - Alert), who explained that, “Businesses across the globe are migrating conventional PRI voice circuits to SIP trunks to reduce cost, improve productivity, and enhance the customer experience. But vendor incompatibilities, deployment complexities, and lack of service agility lead to implementation delays, customer frustration, deferred revenues, and unanticipated operational expenditures. We invested in STaaS before it became a category, because we saw that the complexity of managing so many moving parts was becoming unsustainable for the enterprise. STaaS is so much easier and so much more profitable, reducing risks and complexity at a time when so much digital transformation is underway.”

Kandy SIP Trunk as a Service o?ers Communication Service Providers (CSPs) a cloud-based alternative that simplifies operational complexities and accelerates time to market. This is true whether launching innovative SIP Trunk service to businesses of any size or simply enhance existing SIP Trunk service with cloud-based SIP and WebRTC overlay solutions.

Enterprises face a host of challenges as they continue to transform to a SIP and Web based world.

“How can they deal with their technical debt, protecting investments they’ve made over the last 10-20 years including in IP-PBX (News - Alert) and IP phone systems?” Patel asked. “How can they empower increased team productivity and enhanced external communications, while planning for incoming millennials whose communications habits are all mobile first? And how do they compete with extremely high-quality customer experiences, whether e-commerce, contact center, or day to day customer interactions?”

Service providers struggle with some of the same challenges. They also need to compete with some of the new “Over the Top” (OTT) market entrants and di?erentiate their SIP Trunk services while o?ering commoditized voice and data bundles, Patel explained.

“To effectively compete, service providers must think beyond dial tones and understand the three critical needs of modern enterprises – cloud, mobility, and contextual communications,” Patel said. “Forward-looking service providers are seizing the opportunity by launching new cloud-based SIP Trunk service that connect and integrate diverse enterprise environments, optimize user productivity, and establish a foundation for continued service innovation by integrating SIP Trunks, WebRTC, and APIs.”

The Kandy SIP Trunk as a Service is a multi-tenant, white-label, cloud-based solution that combines market-leading enterprise SIP trunk security, PBX federation, and advanced session management capabilities with innovative UC and WebRTC overlay functionality.

The highly secure, scalable, and resilient SIP Trunk infrastructure – hosted and managed in the cloud, reduces CAPEX and OPEX (News - Alert) and enables CSPs to:

  1. Significantly reduce operational challenges in rolling out SIP Trunk service
  2. Expand global reachability with faster time to market
  3. On-board customers faster with instant provisioning via simple self-service portals
  4. Grow revenues and margins with new hosted PBX overlay services
  5. Differentiate with innovative APIs and Wrappers to embed SIP Trunks in business applications

“Our global SIP Trunk cloud integrates with a service provider’s PSTN network and provides complete control for leveraging proprietary DIDs, local and long distance, toll-free, emergency, and directory services,” Patel said. “Why try and build independent SIP Trunks when STaaS makes it easy to tap into an existing, proven, global telco-cloud solution?”

Arti Loftus is an experienced Information Technology specialist with a demonstrated history of working in the research, writing, and editing industry with many published articles under her belt.

Edited by Erik Linask
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