SD-WAN FEATURED ARTICLE

Report: SD-WAN Market to Grow to $5.57 Billion by 2020

February 03, 2016

By David Delony, Contributing Writer

Research and Markets has announced a new report that forecasts the Software Define Wide Area Network (SD-WAN) to grow to $5.57 billion by 2020.




“With the introduction of SD-WAN solutions by the enterprise, users create more flexibility, thereby combining multiple channels to synchronize with the available network, resulting in decrease in bandwidth cost,” a Research and Markets statement said. “Many enterprises deploy SD-WAN along with hybrid WAN and MPLS solutions, which combines multiple connections into one connections, thereby creating greater bandwidth at lower cost.”

Research and Markets forecasts the market to grow from $4.66 billion in 2015 to $5.57 billion by 2020, an increase of around 24 percent. The company has segmented the market into virtual appliance, physical appliance, and hybrid components.

The need for software defined networking is driven by the need for enterprises and carriers wanting to manage the complexity of their networks. As virtualization allows companies to consolidate lots of servers into fewer physical machines, SDN allows them to consolidate switches and routers into virtual devices.

Having the networks defined virtually makes it easier to dynamically reconfigure networks. Carriers could redirect resources where they’re needed when facing heavy traffic. With conventional networks, they have to physically wire their networking equipment to move it around, which can take days to accomplish for large deployments.

With more businesses moving to the cloud, providers also have to be nimble, and SD-WAN looks like a promising solution. A major provider like Amazon has data centers scattered across the globe. SD-WAN will make it easier to more centrally manage these different data centers for better networking performance.

Enterprise-wide SD-WAN networks will also make technologies such as videoconferencing work more smoothly within a company.

The biggest market will be in North America, followed by the Asia-Pacific region. Research and Markets expects the growth in the latter region to be driven by the deployment of efficient wireless networks.




Edited by Maurice Nagle

Get stories like this delivered straight to your inbox. [Free eNews Subscription]
SHARE THIS ARTICLE