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SD-WAN Revenue Reached $162M in Q1 2018

Kelsey Kusterer Ziser

SD-WAN (appliance + control and management software) revenue reached $162M in 1Q18, up 12% QoQ and 2.3x over 1Q17. VMware (after its VeloCloud acquisition) led the SD-WAN market with 19% share of 1Q18 revenue, Aryaka was in second place with 18% revenue share, and Silver Peak rounded out the top 3 with 12%, according to the DC Network Equipment market tracker early edition from IHS Markit.

"SD-WAN is currently a maturing market, expected to reach $861M worldwide in 2018, as early adopters of SD-WAN are expanding existing deployments, having proved the SD-WAN business case. Adoption of SD-WAN is now ramping even in compliance-sensitive verticals such as healthcare and financial (the payment card industry)," said Cliff Grossner Ph.D., senior research director and advisor for cloud and data center at IHS Markit, a world leader in critical information, analytics and solutions.

"Many SD-WAN vendors have begun to incorporate analytics, utilizing rich telemetry data, into SD-WAN management platforms–enabling enterprises to monitor application traffic flow between multi-cloud environments," said Grossner.

More Data Center Network Market Highlights

  • F5 garnered 46% ADC market share in 1Q18 with revenue up 4% QoQ. Citrix had the #2 spot with 29% of revenue, and A10 (9%) rounded out the top 3 market share spots.
  • 1Q18 ADC revenue declined 4% from 4Q17 to $453M and declined 4% over 1Q17
  • Virtual ADC appliances stood at 31% of 1Q18 ADC revenue.

IHS Inc.

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