VoIP, call forwarding, call flow designer, IVR, ACW, and more are just some of the terms you might spot when researching virtual phone system providers. Today, we are adding another one to the list.
SIP trunking is a technology that allows businesses to significantly improve both their internal and external communication strategies. With it, going from an outdated landline Private branch exchange (PBX) to a smart and intelligent cloud-based phone system is possible in seconds.
Increasingly more businesses are taking advantage of SIP trunking. Transparency Market Research says that the global market for this technology could grow at a 13.8% annual rate until 2030 and reach a market value of $35.5 billion by that time, even surpassing $43 billion by 2031.
If you’re curious to know what SIP trunking is, what it’s used for, as well as what benefits it offers, read on.
Let’s start by dividing the term into smaller parts. SIP is an acronym for Session Initiation Protocol. SIP is the technology that can create real-time connections between two phones. In short, it’s the technology that makes VoIP possible.
Trunking refers to the process of all your phone lines coming together to connect in a functional way.
SIP trunking therefore refers to a type of Voice over Internet Protocol (VoIP) technology and streaming media service. It’s based on the Session Initiation Protocol (hence the “SIP”) through which Internet telephony service providers (also known as ITSPs) serve their customers.
Probably the most common use for SIP trunking is providing cloud-based phone services for users of an existing PBX or server. The technology can deliver outbound and inbound calling, plus other cord-cutting features via the cloud.
In short, SIP trunking can be used for call management and setup. Thanks to the fact that it’s reliable and flexible, many businesses actively use it to make their workflows smoother.
With this technology, you can really focus on your core business instead of the often complicated and time-consuming technicalities.
While the cost-saving potential is very attractive, it’s not the only thing that this technology offers. Businesses looking to switch to SIP trunking should also keep in mind the scalability and mobility possibilities, among the other advantages.
Moreover, SIP trunking is a great option for companies dealing with international calls. We know how expensive they can be, and SIP trunking is here to make your phone bill slightly less traumatizing.
Let’s look at the benefits more closely: