The Connectivity Conundrum – Assessing the Future of SIP Trunking and SBCs in an Evolving UCaaS Market

I had several questions regarding the future of SIP trunking and associated hardware (such as Session Border Controls) and, therefore, felt I needed to address this in a new report.

Consequently, Omdia has published a new market landscape report titled "The Connectivity Conundrum – Assessing the Future of SIP Trunking and SBCs in an Evolving UCaaS Market".

Within this report, I cover the following:

• Market Changes: The #UCaaS market is changing as enterprises evaluate connectivity options, with new SIP trunking providers, vendor calling plans, and mobile services challenging traditional SIP trunking and SBC markets.
• Michael Porter's Five Forces model: to analyze the competitive forces in the UCaaS connectivity market, focusing on vendor rivalry and market attractiveness.
• Communication Shifts: Organizations are shifting from PSTN to VoIP and internet-based video meetings, reducing the demand for traditional SIP trunking and affecting the sales of voice infrastructure equipment.
• Decline of ISDN: Many countries are transitioning from ISDN to SIP, which offers advantages like lower call rates, scalability, and geographic presence, making SIP the prevailing option for PSTN access.
• Enterprise SBC Market: The demand for enterprise SBCs is declining due to alternative connectivity options like UCaaS calling plans and BMC (Business Mobile Convergence), with the market expected to shrink over the next five years.
• UCaaS Connectivity Options: UCaaS vendors offer a mix of calling plans, CSP and CPaaS vendor choices, and BYOC options, with a significant competitive challenge from MVNOs using eSIM technology.
• Future Market Dynamics: The SIP trunking market is considered unattractive due to intense competition, high buyer power, and the threat of substitutes. Providers need to balance cost efficiency and value creation to differentiate themselves.
• Recommendations for Enterprises
• Recommendations for UCaaS and SBC Vendors
• Recommendations for CSPs

I think the following diagram encapsulates the shift in connectivity preferences in conjunction with shifting workstyles and would welcome your thoughts and comments-

For existing @Omdia subscribers, this report can be found here: Market Landscape: The Connectivity Conundrum – Assessing the Future of SIP Trunking and SBCs in an Evolving UCaaS Market Omdia (informa.com)