IDC Offers SD-WAN Market Insight

July 25, 2019

By Maurice Nagle, Web Editor

SD-WAN is wooing organizations large and small, but these are just words. Numbers tell the true tale of this up-and-coming networking technology, as this “matured” tech no longer new to the scene and research is illustrating exactly how up-and-coming SD-WAN is.

IDC announced the arrival of two new research reports, the SD-WAN Infrastructure Forecast as well as the Market Share and Market Forecast reports. Hot off the presses, the enterprise networking segment is predicted to grow at a CAGR of nearly 31 percent from 2018-2023.

The SD-WAN infrastructure market is becoming increasingly competitive, noting 2018 sales equivalent to $1.37 billion and a boost in sales by 64.9 percent. Doing the math, with a CAGR of 30.8 percent, by 2023 the space is projected to reach a valuation of $5.25 billion.

"SD-WAN continues to be one of the fastest-growing segments of the network infrastructure market, driven by a variety of factors. First, traditional enterprise WANs are increasingly not meeting the needs of today's modern digital businesses, especially as it relates to supporting SaaS (News - Alert) apps and multi- and hybrid-cloud usage. Second, enterprises are interested in easier management of multiple connection types across their WAN to improve application performance and end-user experience," said Rohit Mehra, vice president, Network Infrastructure.

To no one’s surprise, Cisco (News - Alert) is the leader in the clubhouse courtesy of two factors: the 2017 Viptela acquisition where it was able to add the Meraki portfolio and its accoutrements and its robust suite of routing solutions. Speaking of 2017, VMware’s VeloCloud acquisition is showing some ROI, putting the provider with the second largest segment of the market. Silver Peak, Nokia-Nuage, and Riverbed (News - Alert) rank third, fourth and fifth respectively.

"Combined with the rapid embrace of SD-WAN by leading communications service providers globally, these trends continue to drive deployments of SD-WAN, providing enterprises with dynamic management of hybrid WAN connections and the ability to guarantee high levels of quality of service on a per-application basis," Mehra continued.

What’s in your WAN? Looking to learn more?

Edited by Maurice Nagle

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