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Global Enterprise Media Gateway and Session Border Controller Market


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The global enterprise media gateway and the enterprise session border controller (E-SBC) segments are on the opposite ends of the market cycle. While media gateways are mature products and increasingly losing relevance in unified communications (UC) infrastructure, enterprise session border controllers are emerging from a nascent stage with a widening presence in businesses. However, the ongoing transition to voice over Internet protocol (VoIP) access and session initiation (SIP) trunking is driving growth in both segments – media gateways in legacy communication platforms and E-SBCs in modern all-IP based UC platforms.

New analysis from Frost & Sullivan's Global Enterprise Media Gateway and Session Border Controller Market analysis finds the market earned revenue of $1.98 billion in 2012 and estimates this to reach $2.54 billion in 2019.

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Global Enterprise Media Gateway and Session Border Controller Market

  1. 1. Global Enterprise Media Gateway and Session Border Controller Market Two Strong Segments Form an Intertwined Market Opportunity NC88-64
  2. 2. 2NC88-64 Return to contents Executive Summary
  3. 3. 3NC88-64 • The delineation between the enterprise media gateway and session border controller (SBC) market is becoming increasingly blurred as multi-service devices offering both media conversion and SBC functionality become a mainstay of competitors’ enterprise product lines. • Enterprise media gateways will continue to exist as an essential component of enterprise unified communications and collaboration (UC&C) deployments for the foreseeable future. Gateways help to bridge disparate platforms and interfaces in order to overcome some of the interoperability challenges in multi-vendor and multi-protocol UC&C environments. • The enterprise session border controller (E-SBC) segment continues to make great strides, yet rapid growth is stymied by a lack of mindshare among small and mid-sized customers. • The continuing transition to voice over Internet Protocol (VoIP) access and session initiation protocol (SIP) trunking services is currently the single largest driving factor in both the media gateway and E- SBC markets. • These services can offer significant cost savings to enterprises with both time division multiplexing (TDM) and IP telephony systems, with media gateways serving as the conduit between SIP and legacy communications protocols and E-SBCs providing security and interoperability for native IP platforms. • While the popularity of mobile devices and the developing WebRTC standards are giving E-SBCs new roles in enterprise UC infrastructure, vendors continue to struggle to make the importance of protecting their infrastructure resonate with businesses. Executive Summary—Key Findings Source: Frost & Sullivan
  4. 4. 4NC88-64 Executive Summary—CEO’s Perspective 2 The traditional media gateway market is facing commodity pricing and ultimate obsolescence. 3 The E-SBC market is finding additional roles on the enterprise edge, including mobile device and WebRTC support. 4 Both segments of the market are heavily driven by the adoption of VoIP access and SIP trunking services. 5 Customer awareness is an ongoing challenge to long-term growth. Making the case for MGs/SBCs will be crucial. Source: Frost & Sullivan 1 The enterprise media gateway and E-SBC markets are increasingly interlinked as multi- service devices blur competitive and product lines.
  5. 5. 5NC88-64 Return to contents Market Overview
  6. 6. 6NC88-64 Enterprise Media Gateways The enterprise media gateway market is an integral part of the overall enterprise communications solutions industry. Media gateways typically reside on the enterprise premises, either at main offices or branch locations, and allow organizations to effectively integrate IP and TDM voice platforms and networks. An enterprise media gateway functions as a ―signal translator‖ for voice calls originating and terminating between traditional TDM-based private branch exchanges (PBXs) or key telephony systems (KTS) and VoIP/SIP trunk access networks, as well as those originating and terminating between IP PBXs and the public switched telephone network (PSTN) or SIP trunks. Media gateways are used for ―toll bypass‖—transferring calls between two or more TDM PBXs within the same enterprise over a company’s IP network. Market Overview—Definitions Source: Frost & Sullivan Scope Geographic coverage Global Study period 2011–2019 Base year 2012 Forecast period 2013-2019 Monetary unit US Dollars
  7. 7. 7NC88-64 Enterprise Media Gateways (continued) Enterprise media gateways are also used for integrating branch offices with a centrally deployed IP telephony platform and applications. Finally, media gateways are deployed to connect an enterprise telephony solution, typically a TDM- based one with various IP-based applications such as unified messaging (UM), unified communications (UC) or conferencing; they also connect such applications with carrier TDM or VoIP networks. Session Initiation Protocol (SIP) SIP is a media signaling protocol that facilitates set-up, control, and tear-down of IP-based voice, video, and data communications sessions. SIP is designed as an application-layer protocol that is independent of the transport layer, enabling it to operate in Transmission Control Protocol (TCP), User Datagram Protocol (UDP), or Stream Control Transmission Protocol (SCTP) environments. SIP is a distributed peer-to-peer protocol, with which intelligence and features are embedded in endpoints (e.g., servers, phones, gateways, and appliances) rather than at the network core. Session A session is the interaction between two endpoints (servers, appliances, or user devices) that occurs during a single connection. A session occurs when two endpoints agree to connect in order to exchange data (media signals), and ends when either endpoint terminates the connection. A session can include any combination of voice, video, or data communications. Market Overview—Definitions (continued) Source: Frost & Sullivan
  8. 8. 8NC88-64 Enterprise Session Border Controller (E-SBC) SBCs are infrastructure devices that provide connectivity (NAT, SIP normalization, IPv4 to IPv6 networking, SIP-H.323 protocol translation), security, QoS, regulatory compliance (emergency call prioritization), and media services (transcoding) for IP communications. Enterprise SBCs produced by certain vendors additionally offer gateway, VoIP mediation, PSTN access, survivability, and other features. In session management architectures, SBCs facilitate the integration and interoperability of multi-vendor components (user devices, servers, appliances, and services). The SBC provides a secure demarcation between enterprise and telecom carrier networks for access, hosted communications, and other services. SIP Trunking SIP trunking services are a form of VoIP access services offered by telecom carriers that utilize converged access lines to connect premises-based PBX equipment and UC&C platforms to the telecom carrier network. VoIP access and SIP trunking services essentially direct enterprise customers toward a path of gradual transition to fully converged, IP-based networks. SIP trunking services are typically deployed with SIP-based or SIP-enabled enterprise IP telephony platforms for which protocol conversion is not required. In support of SIP trunking services, session border controllers (SBCs) or other devices are recommended for protocol normalization and security purposes. Market Overview—Definitions (continued) Source: Frost & Sullivan
  9. 9. 9NC88-64 Unified Communications (UC) A UC solution converges disparate communications systems and applications (voice, data, and video) to improve enterprise-user productivity and enhance collaboration. UC solutions are meant to simplify communications for end users by giving them access to a consistent set of integrated tools. These tools enable end users to share information from any location, employing the most appropriate communications modality and endpoint for their needs. Applications and infrastructure convergence in the form of UC additionally aims to enable enterprise administrators to more effectively manage a single network, both systems and end-user elements, using a consolidated set of management tools. Market Overview—Definitions (continued) Source: Frost & Sullivan
  10. 10. 10NC88-64 Return to contents Drivers and Restraints—Total Enterprise Media Gateway and Session Border Controller Market
  11. 11. 11NC88-64 Drivers 1–2 Years 3–4 Years 5–7 Years SIP trunking is advancing as a go-to choice for VoIP delivery, driving media gateway and E-SBC demand for customer premises equipment. H H H IP telephony and UC&C penetration drives demand to integrate enterprise IP platforms with the PSTN. M M M Interoperability between systems will remain a challenge, requiring multi-function media gateways or E-SBCs to fill the gap. M M M WebRTC and mobile device support are creating new use cases and a larger role for E-SBC deployments. L M M SBC functionality and additional features extend the scope and applicability of media gateways. L L L Impact ratings: H = High, M = Medium, L = Low Source: Frost & Sullivan Total Enterprise Media Gateway and Session Border Controller Market: Key Market Drivers, Global, 2013–2019 Market Drivers
  12. 12. 12NC88-64 Restraints 1–2 Years 3–4 Years 5–7 Years Lack of customer mindshare and product knowledge stifle E-SBC adoption . H H M An uncertain economy is likely to stall enterprise UC projects and, in turn, slow growth for media gateways and E-SBCs. H M M International adoption of SIP services is slower than in North America, impacting market growth for both media gateways and E-SBCs. M M M Native SIP trunking will overtake traditional PSTN connectivity, marginalizing the need for enterprise media gateway sales. M L L Impact ratings: H = High, M = Medium, L = Low Source: Frost & Sullivan Total Enterprise Media Gateway and Session Border Controller Market: Key Market Restraints, Global, 2013–2019 Market Restraints
  13. 13. 13NC88-64 • ADTRAN • Avaya • Cisco • Edgewater • GenBand • Ingate • Mitel • Siemens Enterprise Communications • Sonus • Sangoma Partial List of Companies Interviewed Source: Frost & Sullivan
  14. 14. 14NC88-64 Market Overview—Key Questions This Study Will Answer Why are the enterprise media gateway and enterprise SBC markets growing, how long will they continue to grow and at what rate? Are enterprise media gateways and session border controllers opposing or interlinked markets? Will these companies/products/services continue to exist or will they get acquired by other companies? Will the products/services become features in other markets? How will the structure of the market change with time? Is it ripe for acquisitions? Are the products/services offered today meeting customer needs or is there additional development needed? Are the vendors in the space ready to go it alone, or do they need partnerships to take their business to the next level? Source: Frost & Sullivan
  15. 15. 15NC88-64 Contents of Full Analysis Section Slide Number Executive Summary 4 Market Overview 9 Total Enterprise Media Gateway and Session Border Controller Market • Drivers and Restraints 15 • Forecasts and Trends 24 • Demand Analysis 28 Enterprise Media Gateway Segment Breakdown 34 Enterprise Session Border Controller Segment Breakdown 46 The Last Word 57 Appendix 61
  16. 16. 16NC88-64 Research Team Michael Brandenburg Industry Analyst Information & Communications Technology Lead Analyst Research Director Elka Popova Research Director Information & Communications Technology Strategic Review Committee Leader Robert Arnold Principal Analyst Information & Communications Technologies