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All about SIP Trunking

Updated on August 6, 2010

VoIP without new Infrastructure

We've already seen why VoIP solutions can save businesses money compared to their regular PSTN phone systems. However, sometimes firms already have a great deal of money invested in their own PBX systems that they know how to use and which are properly integrated into their communications infrastructure.

Getting rid of such expensive hardware simply doesn't make business sense. How then, are these firms supposed to leverage the benefits of VoIP? Does the PBX hardware become an albatross around their neck? These are the questions we take a look at in this article.

SIP Trunking and VoIP services
SIP Trunking and VoIP services

SIP Trunking

When new virtual VoIP solutions are introduced into a business, it means that most of the hardware has to undergo some modification or the other. Either the existing analog phones need to get an ATA attached to them in order to convert the signals into IP packets, or new VoIP phones need to be installed.

While this many not matter to businesses that don't have their infrastructure set up and while it may be completely irrelevant to new businesses starting from scratch, large organizations simply can't afford the disruption. A large company is like a huge mammoth that rolls along under its own inertia and no major change can take place quickly. For this reason, such firms found a new way to utilize the cost savings of VoIP technology - SIP Trunking.

SIP trunking is simply the term used when a service provider allows a firm to use its IP infrastructure to place VoIP calls. All the effort comes from the company itself and the provider simply stands back and lets them use it as they will.

This has many disadvantages. For example, the firm itself will need to build systems to make full use of functionality such as HD voice using VoIP services, conferencing, call waiting etc. Normally these services are provided by the hosting firm. Small businesses can't do all this for themselves. They don't have the time, the expertise, or the money. Large firms however are able to set it up and manage it themselves.

This is somewhat like having your own server in a colocated datacenter. The server is yours to customize and make use of as you please. Only the support environment is sold to you. When implemented properly, it can lead to significant cost savings starting almost from day one!

In a later article, we'll cover how exactly an SIP trunking system is set up and whether or not it's suitable for your business.

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