Global Enterprise Media Gateway and Session
Border Controller Market Two Strong Segments Form an Intertwined Market Opportunity
NC88-64
2NC88-64
Return to contents
Executive Summary
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
4NC88-64
Executive Summary—CEO’s Perspective
2The traditional media gateway market is
facing commodity pricing and ultimate
obsolescence.
3The E-SBC market is finding additional roles
on the enterprise edge, including mobile
device and WebRTC support.
4Both segments of the market are heavily
driven by the adoption of VoIP access and
SIP trunking services.
5Customer 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.
5NC88-64
Return to contents
Market Overview
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
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
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
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
10NC88-64
Return to contents
Drivers and Restraints—Total Enterprise Media
Gateway and Session Border Controller Market
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 = LowSource: Frost & Sullivan
Total Enterprise Media Gateway and Session Border Controller Market: Key Market Drivers,
Global, 2013–2019
Market Drivers
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 = LowSource: Frost & Sullivan
Total Enterprise Media Gateway and Session Border Controller Market: Key Market Restraints,
Global, 2013–2019
Market Restraints
13NC88-64
• ADTRAN
• Avaya
• Cisco
• Edgewater
• GenBand
• Ingate
• Mitel
• Siemens Enterprise Communications
• Sonus
• Sangoma
Partial List of Companies Interviewed
Source: Frost & Sullivan
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
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
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