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SIP Trunking and Small Businesses


A report from Software Advice on SIP trunking has revealed some interesting findings for small businesses.

Image of a hand dialing a VoIP phone with SIP trunking

Before we look at the findings from the report and their impact on small businesses, let’s take care of the first things first. What is SIP Trunking?

It all starts with VoIP (Voice over Internet Protocol) technology. Two people using VoIP can talk to each other over an internet connection for free. The easiest example here would be Skype.

So that’s all well and good (except for some quality Issues with free communication apps), but what happens when one person with VoIP wants to make and take calls with another person who uses traditional phone lines? This is where a SIP providers comes in to make connecting those calls possible.

Traditionally, digital and analog trunks are business lines that divide into extensions for various departments or employees. SIP trunking is the VoIP replacement for digital and analog trunking. So, if you work at a company that really relies on voice communications and you are considering going away from traditional phone lines to a VoIP system, then you will most likely need a SIP trunking provider. Often times, providers will offer both VoIP systems and SIP trunking.

Ok, so back to small businesses.

Our friends  at Software Advice, a VoIP research group, did a study on the Top Considerations for Selecting and Implementing a SIP Provider. There was one thing that jumped out in their findings that small businesses should be aware of. But first, some of the other key findings in the report include:

  • Security is the top concern in SIP provider selection.
  • Almost 70% of IT decision makers in the survey had already implemented SIP trunking within their own organization.
  • Nearly 3/4 of respondents were “very” or “extremely satisfied” with audio quality.

So, what is one of the big takeaways for small businesses?

Organizations with only one or two locations don’t experience many phone system outages and thus can have a high level of confidence in their VoIP and SIP Trunking. But once a third site enters the fold, you can see from the chart that way more outages are reported from companies with 3+ sites and more complex networks.

bar chart that displays provider outage frequency by number of sites in corporate network

Call quality and reliability with VoIP has come a long way over the past few years. Now, VoIP hosted phone systems are a cheaper, trustworthy solution for many businesses. However, more complex systems that involve multiple sites within a business are having way more than an acceptable number of outages. Careful network engineering is an absolute necessity to help combat that problem, but even with those efforts, it appears that SIP trunking for big businesses has a ways to go before it becomes as reliable as it is for many small businesses.

Would it be a stretch to say that small businesses can use VoIP with SIP trunking for a competitive advantage over the big guys right now? After all, there is a lot to be said for reliability in communications.

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This entry was posted in Cloud Based Phone Services, Technology, Telecommunications and tagged , by Andrew Tillery. Bookmark the permalink.

About Andrew Tillery

Born and raised in Oregon, Andrew has now put down roots in Seattle, because he refuses to call anywhere but the Pacific Northwest home. After graduating from Portland State University with a double major in Marketing and Advertising, he spent some time learning Spanish and experiencing all that South America has to offer. It was while he was south of the equator that he uncovered an interest in writing that he strives to develop whenever the opportunity is presented. When Andrew isn't taking care of business at the office, he is throwing fuel on his fiery passions for sports and the outdoors.