Telephony application server is used to transmit voice and data services by using an Internet connection instead of a traditional phone line. This technology helps add more scalability to companies so as to augment more channels over their existing trunks. It works on VoIP phone systems (Voice over Internet Protocol) and Public Switched Telephone Networks (PSTNs). Telephony application server does not need a physical connection to a telephone company; it operates virtually.
The global telephony application server market is primarily driven by migration of telecom companies from traditional networks to IP networks, which is due to return on investment (ROI) benefits and control capabilities associated with the telephony application server service. In addition, telephony application server has evolved as a cost-effective alternative to traditional telephony systems, including PSTN and ISDN. The cost of installing multiple lines for traditional telephone and Internet services is reduced as both voice and data can be transferred through a single Internet line.
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Furthermore, increasing competition in the telephony application server market has compelled vendors to offer competitive pricing and complimentary features with their services to attract customers. Also, telephony application server enables business organizations to add further channels to their existing trunks. It also offers flexibility to customers by providing local contact numbers irrespective of their geographical location. This helps organizations create their virtual presence in different regions. Furthermore, it enables organizations to add new users to the existing infrastructure. However, interoperability and security concerns are some of the major issues faced by telephony application servers. Data breach has become a matter a serious concern for organizations due to the increasing number of cyber-attacks during recent years. As voice data is transmitted over Internet lines, telephony application server encounters security threats and is vulnerable to cyber-attacks.
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The global telephony application server market can be segmented based on component, connectivity type, organization size, end-user vertical, and region. Based on component, the global telephony application server market can be classified into software and services. The services segment can be sub-segmented into professional services and managed services. SMEs and large enterprises are included under the organization size segment of the telephony application server market. In terms of end-user vertical, the telephony application server market can be segregated into education, banking, financial services and insurance (BFSI), manufacturing, healthcare, defense, retail & e-commerce, media & entertainment, IT & telecom, oil & gas, and others.