What is SIP?
SIP (Session Initiation Protocol) is a standards-based protocol used to initiate and terminate various forms of communication, including Instant Messaging, voice, video, and presence information. SIP was designed in 1996 and its latest version of the specification is RFC 3261.
For quite some time now, SIP has been used to facilitate communications on an organization’s private network. Examples include Voice over IP (VOIP) phone system equipment, corporate Instant Messaging, and video conferencing. Although the benefits of SIP on the private network have dramatically improved organizational communications and significantly reduced costs, the connection to the outside world is still based on antiquated telecommunications technology – Time Division Multiplexed (PRI) or analog connections.
The Old System
Costly, Inflexible, Not Fault Tolerant

The New System
Cost Effective, Flexible, and Fault Tolerant

It is becoming increasingly popular for companies to replace traditional telephone carrier services (PRI and analog services) with VoIP telephone services delivered over IP-based connections using the SIP protocol. These SIP services are being provided by Internet Telephony Service Providers (ITSP).
With every other form of corporate communication being delivered via the Internet Protocol (IP), doesn’t it make sense that corporate dial tone converge over IP as well? It’s a natural progression.