Do Larger Businesses Prefer to Use an SIP Trunk?

If you have ever researched enterprise telephone systems, you would have come across the terms SIP trunks and hosted VoIP services. They are the two most popular alternatives for organizations. Each alternative has its own benefits and drawbacks. What works for one business may not be the right fit for another.

For a long time, there was a clear divide between the businesses that use SIP trunks and those that prefer hosted services. Small businesses opted for the latter. Larger corporations used SIP trunks for the most part. Off late however, things have begun to change. Some big companies are opting for hosted services to reduce maintenance and hassle. On the flipside, small businesses are looking to SIP trunks because of growth and expansion.

Nevertheless, it is true that larger businesses prefer SIP trunks. Let’s take a quick look at why this is so.

SIP Trunks Are Cost-Effective

It’s no secret that VoIP is much less expensive than traditional landlines. Organizations may see their bills reduced by as much as 50% if they upgrade to Internet telephony. But how much you save can vary depending on a lot of factors.

Generally speaking, SIP trunks offer a better return on investment in the long-term. While you do require a higher initial investment, it pays off in terms of volume. For large organizations that make thousands of phone calls per day, SIP trunks are much more cost-effective. The more calls you make, the less it costs per call.

So why don’t small and medium businesses also use SIP trunks if they are cheaper? The answer lies in the high cost of initial investment. If you opt for SIP trunking, you need to purchase and maintain your own IP PBX. It requires manpower, technical expertise, and financial resources. These are all things that a small business usually lacks. Hence they generally prefer hosted services which have a smaller monthly bill and practically zero upfront fees.

SIP Trunks Are Customizable

SIP trunks give organizations more control over their phone system. That is because the vendor is only in charge of connectivity and providing a dial tone. Any call features that you want has to come from your own IP PBX. Your IT team can push updates as soon as they are ready. Your employees can start using these features the moment they are available. You don’t have to pay extra fees or wait for a vendor.

It also means that you are in charge of securing the entire system. You don’t have to rely on a third-party provider. If you have in-house expertise, then you may do a better job than an outsider. For a small business that does not have IT experts on the team, it’s good to leave it to experts. But large companies generally prefer to control their systems, especially when it is so vital to the business.

SIP Trunks Are Flexible and Reliable

Technically speaking, both hosted services and SIP trunks are flexible and reliable. However there are differences in how the two are deployed.

Hosted VoIP services are perfect for small and medium businesses when it comes to flexibility. A company can easily add numbers or lines for seasonal growth, unexpected demand, and expansion. Similarly, you can remove lines from your account when you no longer need them.

But there is a limit to how far you can go in both directions. It largely comes down to the vendor’s experience and resources. Some providers cater exclusively to small businesses. They may not be able to handle the huge growth spurts.

With SIP trunks however, you are in control of almost everything. That means you can downsize or expand to accommodate your business needs. Large companies generally have the resources to invest in additional equipment, software, or human expertise. This is yet another reason why corporations prefer SIP trunks.

It is a similar case for reliability. Most reputed hosted VoIP service providers offer automatic failover and redundancy. You can re-route calls to a mobile phone or landline if your Internet fails.

But what if you have two dozen offices scattered across the world? Some operate in countries which regulate VoIP tightly. Others lack access to certain resources and cannot use mobile phones as a failover option. With SIP trunks, you can tailor your emergency plans to account for such differences. It’s much harder to do that with hosted services.

Should You Go For SIP Trunks?

All this doesn’t mean that a small business cannot use SIP trunks or vice versa. But it quickly becomes obvious that large corporations have several reasons to rely on SIP trunks. They also have the resources necessary to deploy them within the company. Be sure to select the option that fits your needs. You don’t have to use one or the other based on your size alone!