SIP global roll-out to accelerate through 2019

SIP market penetration today is the tip of the iceberg finds Eastern Management Group worldwide study of more than 15,000 businesses.

SIP roll-out has picked and, by 2019, SIP worldwide traffic could be more than double today’s volume.  While 30% of worldwide network traffic today moves with the use of SIP, in 2019 76% of outbound call traffic will be SIP.

That’s what the Eastern Management Group found in a global study of more than 15,000 IT managers who responded to an online survey by The Eastern Management Group. Experts were asked about applications, products, transport, services and SIP drivers.

According to those surveyed, SIP is deployed on all continents for reasons beyond cost reduction. Just 35% of organizations today implement SIP principally to cut cost.

“There’s reason to be optimistic that the SIP market will continue to expand,” says John Malone who runs the Global SIP Project, now in its sixth year, for Eastern Management. “SIP contributes value to business and government more than it does expense reduction. Over the next five years we expect to see sustained SIP growth due not only to the increase of mobility devices for employees, but the extensive projected use of video, security, CRM, cloud systems and open standards appliances.”

Employee mobility, abetted by smartphones, tablets and notebook PCs plays into SIP’s versatility and customers want to leverage SIP’s any device communication. As such mobility is a growth driver.

Of all the world regions, Western Europe moves the largest percentage of its traffic with SIP. A third of the countries’ traffic uses SIP which places the region ahead of neighboring Eastern Europe and also the United States.

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The Eastern Management Group survey studied the use of SIP for 12 individual applications during the next five years. Mobility was seen by 92% of those surveyed as important to their business and video was identified by 84% as important. Some unified communications applications ranked high.

Health Care and Government are Vertical Market Leaders

Within the vertical markets, health care, government and education are leaders among industries that forecast SIP to be of major importance. Healthcare at 87% and government at 91% view SIP as essential for many applications.   Other vertical markets also scored high in the need for SIP to drive specific applications, such as collaboration.

The Eastern Management Group survey included businesses of all sizes ranging from those with fewer than 10 employees to those with more than 20,000. The research found large and small business segments are already heavy SIP users.

In the next five years 76% of outbound call traffic is likely to be SIP. Eastern Management predicts that the United States and Canada will place the highest percent of calls using SIP. Only a fraction, amounting to 4% of United States businesses, think SIP will be of no importance to them in the next five years. A smaller group in Latin America, 2%, project no value from SIP in five years. The survey bottom line is that SIP will be around for quite a while as applications for its use continue to build.

The Eastern Management Group global SIP survey findings and analysis are available in a report. The latest SIP report is SIP Market Worldwide 2014-2019. For more information about purchasing the SIP report and Eastern Management SIP market research and consulting contact jmalone@easternmanagement.com

Eastern Management Group is a research and consulting firm established in 1979. The company provides services to more than 100 service providers and 400 clients worldwide. Reach us by contacting jmalone@easternmanagement.com.

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