October 27, 2011

SIP Trunking for Small Businesses

By Steven Johnson
President, Ingate Systems, Inc.

This article originally appeared in the Oct. 2011 issue of INTERNET TELEPHONY

Lately we’ve seen (in Ingate’s business) a surge of small businesses installing SIP trunks. SIP trunks were first adopted by SMBs that saw the cost-saving potential with shifting voice traffic to SIP. Larger enterprises have also caught on as they realized that the productivity benefits with unified communications were exceptional. UC also offers them a competitive edge.

Today SMB installations are taking center stage again, and especially smaller businesses – even those with two to five people – are tapping into this opportunity. Unlike larger companies that can negotiate with carriers for fantastic rates on traditional telephony (even down to fractions of a penny for every minute), these small shops don’t have the same kind of leverage, and they find themselves having to pay much higher rates than their larger competitors. This makes SIP trunking, which reduces telephony costs significantly and often pays for itself in six months, an unbeatable deal.

While each dollar spent by small businesses has a much bigger impact than it does for their competitors, each dollar saved also has a greater impact. SIP trunks lower costs very quickly. The fact that ROI is achieved quickly as well is also very compelling for growing businesses.

Smaller businesses make up a huge slice of the industry. According to the Small Business Administration, firms with fewer than 500 employees represent 99.9 percent of the 27.5 million businesses in the U.S. For VARs, manufacturers, partners and service providers, this is an important segment to address. Products and services need to be tailored to suit their needs.

The economy has forced everyone, but especially the small business, to turn a critical eye on expenditures. SIP trunks continue to be a wise investment, not only for the immediate reduction in telephony costs but also for the potential to leverage unified communications applications in the future, with a surprisingly minimal initial investment.

Steven Johnson is President of Ingate Systems (News - Alert), Inc. To read more of Steven’s articles, please visit his columnist page.

Edited by Stefania Viscusi