From the SIP Trunking Experts

October 17, 2013

SIP Growth Seems Tied to Success of Hosted, Open Source PBX

By Rory Lidstone SIP Trunking Report Contributing Writer

The growth of Session Initiation Protocol (SIP), has been fairly well-documented and it’s generally agreed upon that this growth will continue going forward. In fact, recent research from Eastern Management Group (EMG) based on a survey of 17,000 IT managers seems to confirm this. According to the company’s research, the sales of SIP phones are growing steadily, thanks in large part to the growing popularity of hosted PBX and open source PBXs.

Curiously, the research also states that most hosted PBX sales are to SMBs, accounting for less than 10 percent of all PBX endpoint sales. However, the hosted PBX space, much like the SIP market, is experiencing significant growth.

Either way, the average target customer for a hosted PBX today is a multi-location small to mid-sized business requiring under 10 branches and no more than 25 SIP phones. According to James Passingham, CEO of Foehn, an independent managed communications provider, businesses of this size make up a “sizeable proportion” of the business market in the U.K., which is presenting “significant marketing opportunities” for those able to capitalize on the space.

As such, hosted PBX providers like 8x8 are likely to do well in the near future, along with providers of PBXs based on open source frameworks, such as Digium’s Asterisk. In fact, the open source PBX may even represent even larger opportunity; at the very least, it is also driving the adoption of SIP phones, with 10 percent of all new PBX systems qualifying as open source.

In other words, companies in the SIP space, such as Ingate Systems, which offers hardware E-SBCs and firewalls that facilitate SIP, are going to continue seeing growth. Ingate in particular seems poised to ride the hosted PBX and open source PBX craze as it now offers a software version combining its Ingate Firewall and SIParator offerings into one convenient package that should appeal to SMBs.

Meanwhile, the company has been working hard lately to expand the scope of its E-SBCs through interoperability. Most notably, Ingate became fully interoperable with ThinkTel’s SIP trunking service last month.

Edited by Stefania Viscusi
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