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now funding more technology-enabled business
capabilities directly from their own budgets, and
consult with the IT department for advice. In
many companies, IT budgets have declined, but
total spending has increased as funds are pulled
from other operations where business solutions
are needed.
NEW ROLE OF IT DEPARTMENTS
More funds can be spent on a given target if the
prospective reward is su cient. e era of static
capital expenditure on IT is over. e CIO and
IT department can spend more time making
users more productive, automating many of
the mundane and time-wasting administrative
tasks that take time away from adding value.
And they can research the best choices for
the business solutions needed for dynamic
operations.
Overall, US IT spending is expected to
remain strong in 2016, IDC says.IT budgets
will increase 4 percent overall for the year from
6 percent in 2014, the IDC report says. US
businesses continue to invest strongly in ird
Platform solutions around Big Data, cloud,
mobile and social, according to the report. e
“new normal” of 4 percent annual growth in IT
spending is likely to continue in 2017, assuming
the overall economy remains in line with is frees up funds to target solutions that do reported use of this capability compared with of infrastructure. ey are easier to manage,
current expectations.
add business value.
46 percent in 2015. A Goldman Sachs study because they don’t have to be calibrated like
Much of the traditional IT spending targets published in January projects that spending on hardware. And they can be tweaked to t the
on infrastructure or storage, for example now FUNDS FLOW TO THE CLOUD
cloud computing infrastructure and platforms businesses they serve, without great expense.
comes cheaper as a service. Managers are happy is explains why 95 percent of all businesses will grow at a 30 percent CAGR from 2016 Altogether, as managers target value-added
to obtain them in this way, because they don’t are spending a signi cant portion of their through 2018 compared with 5 percent growth business solutions, the increasing shi to
add value to the bottom line. Managers are also resources for the cloud. While SaaS has been for the overall enterprise IT.
so ware-based provision can only continue
satis ed that they can get these needs more near universal for the past several years, 2015 So ware-based solutions have a lot of Forrester Research predicts that so ware
e ciently and with higher quality as a service in marked the tipping point for Infrastructure- advantages in this climate. ey are easily spending will rise by almost 10 percent to $640
the cloud.
as-a-Service. In 2015, 63 percent of companies
scalable, because they are nearly independent
billion worldwide in 2017. n
VoIP & SIP Trunking drive fundamental
Kastritou
changes for business telecoms
by Katerina Kastritou,
Website Content Manager,
3CX
B
usinesses seek a new approach to voice many have grown accustomed to. Providers
communications, and the combination can extend control over SIP trunking services
of VoIP and SIP Trunking are the
by putting customers in the driver’s seat,
predominant solution, analysts say.
avoiding unnecessary support calls and the
Analysis from Frost & Sullivan published in
requisite wait for legacy TDM trunks and
October 2015 nds that the technologies that services provisioning,” Brandendburg says.
power business communications services are e new potential for management control
undergoing a fundamental change.
is an important factor in the increasing
“Voice over Internet protocol (VoIP) access adoption of VoIP and SIP trunking, the
and session initiation protocol (SIP) trunking analysts say. Working from a web-based
services are on pace to displace legacy portal, businesses can control features to tailor
telecommunications services as the de facto their communications services. ey can
links from businesses to the public switched quickly address the needs of users, and react
telecom network (PSTN),” the analysis shows.
rapidly to arising issues. Businesses can add
Cost savings is the key driver of this in analytics to the mix to quantify and control
migration for businesses, according to a report call volumes.
by Persistence Market Research published
Developers at businesses now have the
in September 2015. Businesses of all sizes,
ability to add features easily, as the provider
in all geographic markets, want to take the exposes application program interfaces (APIs)
opportunity to reduce the communications to the business. “ e de ned API set enables
bill. But equally important to businesses are VoIP and SIP trunking services are, therefore, acutely focus on ful lling the promises of IP- enterprise and independent developers, as well
features, such as service mobility, user control an obvious choice.”
based communications services: Greater levels as third party service providers, to leverage
interface, integrated applications and phone of control, management and transparency for voice and messaging service capabilities
number portability, the report says, and these NEW BREED OF SIP TRUNKING customers that want more than simple voice without having an in-depth knowledge of SIP
factors are pushing businesses to migrate to PROVIDERS
trunking services,” Brandenburg continues.
trunking services, Brandenburg points out.
SIP trunking.
To meet the needs of businesses that
is means that businesses can embed VoIP
All of this has created a market worth $3.22 are seeking a new approach to voice SHIFTING CONTROL TO BUSINESSES
and SIP trunking into processes, adding value
billion in 2014, which is forecast to grow to communications, a new breed of SIP trunking is new paradigm in SIP trunking shi s and getting the results they need. ey can
$10.29 billion by 2020, according to Frost & providers has arrived, unshackled by the control to businesses, the analysts say, with take advantage of a whole range of products
Sullivan.
legacy of telecoms, the Frost & Sullivan providers o ering Control-as-a-Service.
and services, prioritizing according to their
“Modern uni ed communication platforms analysis states.
“By their very nature, VoIP access and
needs. Businesses can manage how calls ow
natively support SIP trunking as the default “ ese new SIP trunking market SIP trunking services are not constrained
through their organizations.
interface,” writes Frost & Sullivan Uni ed participants leverage many of the same by the same rules as legacy time division “ e result is the o er of highly automated
Communications & Collaboration Industry capabilities as the incumbent carriers, multiplexing (TDM) telecommunications and scalable integrations to telecom
Analyst Michael Brandenburg. “For including direct access to carrier networks, services. Businesses are no longer trapped by services, with greater speed and e ciency,”
businesses migrating to these new platforms,
new numbers, and number portability, but
perceived platform and service limitations that
Brandenburg concludes. n