Enterprise SBC revenue jumps 70% on strength of SIP trunking services

Continued adoption of SIP trunking services by enterprise drove the global session border controller market to 70 percent growth in 2010 and is expected to accelerate that growth to a five-fold increase by 2015.

The report and corresponding survey from Infonetics Research said SIP trunking services, the primary driver for enterprise SBCs sales, grew a whopping 220 percent globally in 2010. And, although legacy technologies like T1 lines are forecast to remain the most commonly usee trunking service through 2013, more respondents to the Infonetics survey say they use SIP trunking than ISDN PRIs already.

"In our recent SIP Trunking Strategies survey of North American enterprises, 43 percent of respondents said they are using SIP trunks in some capacity, although they are not completely displacing PSTN connections," said Diane Myers, directing analyst for VoIP and IMS at Infonetics Research. "All indications show that as businesses upgrade their voice infrastructure, they are making the move to SIP trunking, which will continue to drive growth of enterprise SBCs."

Myers said North America dominates the enterprise SBC market, as SIP trunking is more widely adopted and where larger companies, which can benefit from trunking centralization, are more common than in other regions.

While there are more than 30 vendors offering some form of SBC functionality, the bulk of sales dominated by fewer than 10 vendors, with Cisco and Acme Packet together accounting for over 50% of worldwide sales in 2010

Respondents to the Infonetics survey, meanwhile, said flexibility, easier management, and infrastructure upgrades were the primary reasons businesses are deploying SIP trunking.

Unlike the SBC market, the SIP trunking provider segment is wide open, with enterprises using and evaluating AT&T, Verizon, smaller incumbents, cable operators, competitive carriers, and over-the-top (OTT) providers, illustrating the current competitive landscape for SIP trunking.

Cisco leads the list of PBX manufacturers under evaluation for future purchases, followed by Avaya, but the presence of IBM and Microsoft in the Top 4 installed PBX manufacturers demonstrates the growing adoption of unified communications.

The report, "Enterprise Session Border Controller market size and forecast," and survey, "SIP Trunking Strategies: North American Enterprise Survey," were just recently released.

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