DALLAS – AT&T is collaborating with VeloCloud to deliver AT&T Software-defined Wide Area Network (SD-WAN), a key step in helping many businesses evolve their networks from hardware to software.

The AT&T SD-WAN portfolio will include a network-based solution that combines hybrid networking with multiple types of network access. The network-based solution will be available in 2017. VeloCloud is part of the AT&T Integrated Cloud ecosystem focused on the SD-WAN.

This is part of AT&T’s strategy to incorporate software-centric technologies into our integrated solutions that deliver flexibility and agility for enterprises on a global basis. These capabilities are changing how our customers manage their networks, letting them mix and match based on application, performance and reliability needs. The first integrated offer was software-defined networking, second was network-function virtualization and third is hybrid SD-WAN.

“Businesses need to satisfy increasing bandwidth demands while reducing costs. That means network needs are evolving, too,” said Rick Hubbard, senior vice president, AT&T Network Product Management. “This initiative is part of our software-centric strategy that gives our customers more flexibility and control of their networking services.”

AT&T SD-WAN efficiently routes data traffic across a wide area network, choosing the access type for the best network performance. This split-second routing capability optimizes application performance based on the parameters selected by customers. The service also gives customers choices in how they manage bandwidth.

AT&T SD-WAN will meet the varying needs of businesses large and small, across various industries and regions. The network-based solution will offer an integrated customer experience. In addition to VeloCloud, AT&T plans to collaborate with more SD-WAN technology companies as part of its evolving ecosystem to support customers’ needs.

“We’re bringing more connectivity options together to deliver a better experience for customers,” Hubbard said.

AT&T will provide a virtually seamless evolution path for VPN customers. If a customer has multiple site types with varying reliability, performance, and bandwidth needs, the AT&T SD-WAN network-based solution can be ideal. For a customer with similarity across sites and looking to deploy SD-WAN at all locations, the AT&T SD-WAN premises-based, over the top solution may be the best fit. The premises-based, over the top solution will be available later this year.

AT&T Inc. (NYSE: T)