SIP Industry Bolstered by IMS Developments

According to Chad Hart, VDC's Telecom/Datacom Practice Director, IMS adoption will drive SIP growth, with initial trials through 2006 and more significant deployments in 2007. "The acceptance of IMS by both wireline and wireless carriers solidifies SIP's role as the protocol of choice for all network operators. Most carrier-focused vendors will repackage their existing SIP offerings to cater to this rapidly emerging market."

Natick, MA (PRWEB) April 14, 2005

New research by Venture Development Corporation (VDC), estimates worldwide markets for SIP infrastructure and software to exceed $5.5 billion by 2007. This represents a compound annual growth rate of 36.1% between 2003 and 2007.

Current and Forecast Worldwide Shipments for SIP Technologies

2004: $2.6 Billion

2007: $5.7 Billion

Factors contributing to SIP market growth include:

• Replacement of legacy infrastructure - services providers and large enterprises are choosing SIP-supporting platforms as part of their ongoing upgrades and replacements of antiquated analog and TDM-based equipment.
• Adoption of VoIP services - Residential VoIP and hosted IP Centrex services for businesses, many of which are implemented with SIP networks, are growing rapidly in all major markets.
• New applications - Voice margins are rapidly shrinking and new competitors like MVNOs, MSOs, and Internet Telephony Service Providers (ITSPs) are entering the market. New and existing carriers use SIP networks to offer new presence, location, and video-based applications.
• IP Multimedia Subsystem - Both network equipment providers and carriers universally agree that SIP-based IMS networks are the architecture of the future. IMS will benefit both users and service providers. It will give consumers a common experience across different user devices. Carriers will use IMS to converge their network infrastructure, reducing overall equipment costs, and to rapidly deploy new applications across multiple access platforms such as broadband cable, DSL, 3G, and WiFi.

According to Chad Hart, VDC's Telecom/Datacom Practice Director, IMS adoption will drive SIP growth, with initial trials through 2006 and more significant deployments in 2007. "The acceptance of IMS by both wireline and wireless carriers solidifies SIP's role as the protocol of choice for all network operators. Most carrier-focused vendors will repackage their existing SIP offerings to cater to this rapidly emerging market."

To view this press release (including exhibit), please go to:

http://www.vdc-corp.com/telecom/press/05/pr05-12.html

Report Availability

http://www.vdc-corp.com/telecom/reports/04/br04-24.html

About VDC

Venture Development Corporation (VDC) is an independent technology market research and strategy consulting firm that specializes in a number of datacom/telecom, component, industrial, retail automation, RFID, AIDC, embedded, and defense markets. VDC has been operating since 1971, when the firm was founded by graduates of the Harvard Business School and Massachusetts Institute of Technology. Today, we employ a talented collection of analysts and consultants who offer a rare combination of expertise in the market research process; experience in technology product and program management; and formal training in engineering and marketing. VDC?s clients include thousands of the largest and fastest-growing tech suppliers in the world and the most successful investors participating in the markets we cover.

For further information about the "SIP Enabling Technologies and Infrastructure Equipment: Global Market Demand Analysis" or any other VDC service, contact:

Marc Regberg, Vice President, 508-653-9000 ext. 111, msr@vdc-corp.com

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