INGATE

SIP Trunking Featured Article

November 27, 2012


Router Market Growth Flat, Future Uncertain Amid Troubled Economy, Growing Competition


By
Contributing SipTrunkingReport Writer

The world economy has seen better days. With a shaky Eurozone tottering along uncertainly and the United States facing a "fiscal cliff," it's not surprising to see growth in electronics markets match up. ACG Research recently unveiled the results of their recent studies and found there was plenty to be concerned about, with just a few potential bright spots in the mix.


The ACG Research studies, focused on the Worldwide Carrier Routing & Switching markets, offered little growth in the third quarter of 2012, staying comparatively flat. While the total market offered revenue of $2.75 billion, it represented a drop of 1.7 percent over the previous quarter, and a drop of 2.5 percent over the year.

Core routing revenue fared worse, yielding a drop of 1.9 percent from the previous quarter and 9.6 percent over the year. Edge routing and switching, meanwhile, also saw declines, though much less pronounced; while they lost 1.7 percent over the previous quarter, they're down only 0.4 percent from this time last year.

The root causes of the drop, according to managing partner Ray Mota, appear to be a combination of overall economic uncertainty at the global level as well as increasingly aggressive competition for a declining overall market.

Mota elaborated, "Enterprise CEOs will most likely remain conservative and more focused in their IT spending and hiring for the remainder of the year. These factors will continue to force vendors to innovate and develop technology that can deliver significant operational savings as well as address market demands for new and cutting-edge services that are application focused."

But it wasn't all bad news, as Mota also described AT&T's plans to increase its capital expenditures by $2.5 billion per year. Additionally, it's becoming clear that expansions are going to be necessary regardless of the overall economic conditions simply due to consumers' increasing bandwidth demands.

The report detailed that core network traffic is growing at a rate of over 50 percent per year, and the increase in cloud-based services, mobile services and digital media offerings are increasing demands on the network still further.

Moreover, 78 percent of respondents in a recent ACG survey said they had SDN plans either under discussion or planned for deployment, a response to both the unfavorable economic conditions currently in play and the need to offer new services to keep customers currently in place.

The lack of growth in the router market is likely a temporary problem. The demand for access isn't going away – if anything it's getting significantly larger as more consumers discover benefits – and that's going to drive growth among all those who are still subscribing. People want access; the growth in streaming video services and online gaming isn't restricting demand any, and that means more networks will either have to bulk up or lose customers to those who will.

While the larger economic picture is still marked by uncertainty and major problems afoot, there's also room for opportunity, if one chooses to pursue it. The key focus for router providers, however, will be above all else to provide value.

Want to learn more about SIP Trunking and how to integrate it into your current UC strategy? Don’t miss the SIP Trunking- UC Seminars in South San Francisco on November 27, 2012.




Edited by Braden Becker
Loading
Subscribe here for your FREE
SIP TRUNKING enewslettter.

Featured Partner

Featured Whitepapers

SIP Security for the Enterprise
Voice over IP (VoIP) is incorporated into a variety of computer networks, both public and private, and used for everyday transactions and communications among carriers, businesses, government agencies...

Voice-Optimized Network Delivers Premier Call Experience
Customers equate call quality with business quality. Real-time communication, interpersonal interaction, and the cordial tone of a call center representative can create a positive impression of your business that no email can match.

Featured Datasheets

Ingate SIParator E-SBCs
Adopting SIP is a simple process with the Ingate SIParator, the secure enterprise session border controller (E-SBC). The SIParator makes secure SIP communications - including VoIP,SIP trunking and more - possible while working seamlessly with your existing network firewall.

Ingate Firewalls
Everyone is talking about enterprise usage of VoIP, instant messaging and other types of realtime communications including presence and conferencing.

SIP Trunk Solutions for Service Providers
The award-winning Ingate Firewall and Ingate SIParator deliver a high quality, reliable SIP trunk connection between the customer's IP-PBX and the service provider network, and solve interoperability issues to simplify deployments and support for remote diagnosis of reported issues.

Featured Case Studies

Case Study - Haiti
With this solution our doctors were able to reach anywhere in the world quickly and easily, to get consults from colleagues, facilitate treatment, order supplies 'on the fly' and also help victims report back to families. The solution from Business Mobility Systems and Ingate worked immediately.

Case Study - Turkish Petroleum
"With one Ingate at the customer headquarters, all of their remote workers can enjoy the benefits of Turkish Petroleum's IP-PBX from anywhere in the world.

Case Study - GCM
"The Ingate solution overcomes the NAT traversal hurdle and makes it possible to connect customers to our VoIP service, without the need of costly leased lines or support intensive VPN tunnels.

Case Study - Kool Smiles
"Ingate's solutions provide the advanced level of security necessary for this medical environment and the tools to make the interface to the service provider hassle-free."

Case Study - NMSAS
"This solution really saved the day for us," said Paul Mercier, IT Administrator, NMSAS. "We needed to leverage SIP trunks to reduce costs, and they had to work with our existing Microsoft OCS investment."

Discover Leisure Connects Remote Users to its IP-PBX
Discover Leisure is one of the largest resellers of caravans and motor homes in the UK. With 15 branch of?

Featured eBOOKS

Internet+: The Way Toward Global Unified Communication
Connecting the telephony of the enterprise PBX or Unified Communications (UC) system using SIP trunks instead of conventional telephone lines has been very successful in recent years.

What is SIP Trunking? Edition 2
SIP trunking is becoming more of a focus for service providers. One key issue many service providers face when deploying SIP trunks is NAT, or Network Address Translation, traversal.

What is SIP Trunking? Edition 1
A vast resource for information about all things SIP - including SIP, security, VoIP, SIP trunking and Unified Communications.

Featured Videos

E-SBCs AS The Demarcation Point:
Ingate's Steve Johnson talks to Erik Linask about the role session border controller plays as the demarcation point at...

Demystifying DPI
How can deep packet inspection protect your SIP traffic as well as your entire network?

Featured Resources

What's New

Presenting the New Ingate/Intertex Website:
Internet+ is an extended Internet access allowing high quality SIP (Session Initiation Protocol) based real-time person-to-person communication, everywhere and for any application. It applies to both fixed and mobile networks ...

Featured Blogs

Featured Webinars

Secure SIP Trunking:
What You Need to Know

Successfully Deploying Enterprise SIP Trunking:
Tools and Techniques for Overcoming Common Roadblocks

Featured Podcasts

Getting the Most Out of Your SIP Trunks:
Ingate's Steve Johnson and TMC's Erik Linask discuss how best practices forgetting the most out of SIP Trunking services and common pitfalls to avoid.