How Does SIP Trunking Save Money for Businesses? …In 6 Ways

Telecommunications are more important for businesses than ever. Teams are working remotely. Customer bases are globally distributed. And almost every aspect of business requires at least one digital device.

In such a connected world, businesses need endless amounts of data and flawless connectivity, and meeting these needs increases operating costs.

SIP trunking can help. SIP trunk connections offer better data flow than legacy telecoms, and—with the right SIP trunking provider—you can get perfectly dependable connections.

But there’s another big question about SIP trunking: How does SIP trunking save money for businesses?

There are several ways (6 to be exact) that SIP trunking saves money for businesses. However, all of these cost savings are based on how SIP trunking works.

What Is Sip Trunking and How Does It Work?

SIP is an acronym for Session Initiation Protocol. The simplest way to understand how SIP trunking works is to think of it as using internet connections for voice and video calls, instead of using traditional copper phone lines. Session initiation is just the method of managing connections for calls.

The important thing here is that SIP trunking enables businesses to connect calls over the internet. It’s that internet connection capability that provides the tangible benefits of SIP trunking.

What Are the Benefits of Sip Trunking?

The benefits of SIP trunking can be boiled down to a few broad improvements over legacy telecom and other call connection protocols. SIP trunking connections are easier to provision, easier to manage, and are more reliable than legacy telecom and most other internet protocol (IP) voice connection technologies.

These broad benefits break down into subcategories, which is where you can really start to see how SIP trunking saves money.

How Does Sip Trunking Save Money?

Ease of provision, ease of management, and reliability enable SIP trunking to deliver about a handful of key features that help businesses reduce costs. Businesses need efficiency, flexibility, and scalability to keep costs down. And SIP trunking offers all of those benefits. 

1. More Flexibility

SIP trunking makes it far easier to get new voice and data connections online. Therefore, businesses can quickly and easily add new phone numbers and data connections, on demand.

On the flipside, these connections can just as easily be terminated when they’re no longer needed.

All this means that businesses can use SIP trunking to pay only for the connections they need, when they need them.

Without SIP trunking, businesses usually have to pay for a fixed number of connections, then carefully manage how they use those connections to ensure they’re using them most efficiently.

This costs businesses a lot of time, effort, and energy in managing connections, in addition to the wasted cost of unused connections or lost revenue from having more calls than the fixed number of connections can handle.

Being able to get the connections you need, when you need them is simply the most cost efficient way to manage your telecom infrastructure.

2. More Predictable Calling Costs

SIP trunking removes the variable costs associated with making long-distance calls. On a SIP trunking connection, all calls are essentially treated as local calls.

It’s difficult to anticipate how many calls will be long-distance calls and how many will be local calls. So having to pay more for some calls than others causes wild variability in telecom costs, which makes it difficult to allocate budgets and spend money efficiently.

SIP trunking makes it so all your calls have the same per-minute or per-connection cost. That way your business can more accurately predict telecom costs, build more precise budgets, and invest revenue where it produces the best ROI.

3. Reduced Network Costs

Using an internet connection for all of your communications simply requires a less complex network than using an internet connection for some connections and a phone line for other connections, or using some other combination of connection methods.

A less complex network means less networking software and hardware to pay for and manage. This gives you more reliability and lowers operating costs.

4. Unified Communications

Simplifying your network also brings all of your communications—including things like chat, instant messaging, and text—onto the same platform.

This further reduces operating costs because it means you need less software and fewer services to get the functionality you need. It’s just less expensive to get all your communications from a single piece of software than it is to pay for multiple software suites.

5. Increased User Satisfaction

When your communications are easier to manage and more reliable, you’ll have happier customers, full stop. Very few things annoy customers more than not getting the help they need, when they need it.

However, your employees are also users on your telecom network. When it’s easier for your teams to communicate with each other and it’s easier for your IT teams to manage your network, your company is more productive.

Happier customers bring in more revenue. And more productive teams maximize profits. There’s no downside here.

6. Efficient Scaling

Lastly, as your business grows, you’ll need to scale up your communications. SIP trunking scales up on demand.

Get as many new phone numbers and data connections as you need, when you need them. And you can add far more SIP trunking connections to your network with no additional hardware infrastructure than is possible with other voice and data connection technologies.

Scaling up can easily cause efficiency problems. Telecom infrastructure that scales easily without introducing additional costs removes one of the most common barriers to growth that businesses experience.

Start Saving Money with SIP Trunking

Transitioning to SIP trunking connections will open up all your business communications.

Communication between your employees and offices will improve. You’ll get better communication with customers. And your communication costs will go down.

Even better, migrating your telecom to a SIP trunking connection is easy, and the upfront costs are low. There’s no reason to stick with your old telecom network.