SIP stands for System Initiation Protocol  and can allow data and voice connections to be installed and connected using a single line instead of each being run with individual lines and connections.  There are several companies that can install, maintain and service SIP trunking connections, and which is best for you will depend on your individual company needs.

There are several benefits to using SIP trunking for your business, which includes the end of costly equipment that can be less reliable or capable and takes up more space and capital to install and maintain.  The TDM gateway infrastructure, for instance, tends to cost far more than using this protocol and requires desktop equipment.  There is also no need to buy additional equipment that is used to interface between IP voice and the Public Switched Telephone Network (PSTN).  Because only one connection is being used, there is less expense to deal with every month.  SIP Trunking can also reduce costs in the area of long distance phone calls by eliminating the need to pay for the two types of connections as well as allowing for PSTN connectivity to be outsourced, further reducing these costs.

SIP trunking also allows a company to establish a presence in multiple cities, using local numbers that their customers can call instead of relying on toll-free numbers.  A customer is rarely going to call a long distance number; especially for something that they know may result in lengthy times on the phone.  It is comforting to think that a company is locally based and the costs are greatly lowered over the use of toll-free numbers.  Finally, SIP trunking allows the company to use VoIP services while keeping the traditional phone service in place as well.

Your managed service provider can help you to decide whether or not you are going to realize savings with SIP trunking over other forms of telecommunications, or whether it should be used in connection with them.  There are several problems that can become evident when mixing services from one vendor and another in one unified IT environment, however, these can be anticipated and planned for while minimizing downtime, equipment failure and repair costs over the long term.

 There are several questions that you should discuss with managed service providers so that you can decide whether this is the best option for you or not.  These include:

1. How much will the initial investment be versus the initial investment of the two individual protocols that it would replace?

 2. How much would the savings (if any) be per month over the other protocol types?

 3. Considering the problems that can arise with SIP trunking, what is the potential cost per repair in terms of both the actual repair work and lost work time because of a system failure?

4. Is a SIP trunking connection as reliable as other protocols or will my company be giving up some security in exchange for reduced rates and monthly savings?