SIP is a signaling protocol that is enabling unified communications applications by allowing IP-based communications to be extended across different networks, devices, and transport mediums. Key advantages of SIP include supporting mobility, virtual numbers, and business continuity. SIP trunking provides cost benefits like reduced network service costs by converging voice and data on a single IP connection. Considerations for SIP implementation include ensuring interoperability between systems, implementing security measures like encryption, and properly provisioning E911 services for mobile users.