Service Provider Cloud

SD-WAN Market Soaring to Nearly $3B, Report Finds

The market for software-defined wide area network (SD-WAN) is about to hit a major growth spurt, with service providers embracing the technology in order to support the needs of their enterprise customers.

In 2016, the SD-WAN market collected about $87 million in revenue -- with $31 million of that coming in the fourth quarter of the year. However, by 2021 that number is expected to soar to $2.9 billion, according to a report released by IHS on March 22.

There are several reasons why this market is growing at such a rate, but Mike Robuck, the editor of sister site Telco Transformation, writes that service providers including Orange, AT&T, CenturyLink and others have started to use SD-WAN to deliver services to enterprises. (See Report: SD-WAN to Top $2.9B by 2021.)

SD-WAN uses software-defined networking to establish connections between distant locations, such as enterprise facilities and cloud providers. It provides a more flexible, less expensive alternative to wide-area networking depending on dedicated hardware.

(Source: iStock)
(Source: iStock)

However, as Robuck writes, the rush to market for SD-WAN has meant that a number of vendors are offering different versions of the technology, which can lead to problems, including interoperability difficulties.

For more information about the SD-WAN market, check out the full report on our sister publication Telco Transformation.

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— Scott Ferguson, Editor, Enterprise Cloud News. Follow him on Twitter @sferguson_LR.

Scott_Ferguson 3/27/2017 | 7:46:15 PM
Re: IoT @Ariella: Ha. Ha. No I didn't think that at all. I'm just trying to write the best story possible, which I guess could be a form of OCD, but nothing like that. 
Ariella 3/27/2017 | 7:42:54 PM
Re: IoT @Scott I know. I'm not saying you were misleading. I do know people who just would not be able to bring themselves to put down a number like $2.9. They're not quite as extreme as the OCD detective Monk who gave out his own money to round up amounts at a bank, but they come close.  
Scott_Ferguson 3/27/2017 | 5:01:27 PM
Re: IoT @Ariella: I used $3 billion in the headline because it made it a little bit neater to write. That was more of an editorial choice than anything else. However, going through the article I made sure to give the exact number -- $2.9 billion. I'd say that I do tend to round up and in this case, when you are looking out a number of years, I'd say it's pretty hard to predict a market with an exact number.

Ariella 3/27/2017 | 3:03:47 PM
Re: IoT Good point, @Danielcawrey! You're thinking like a marketer!
danielcawrey 3/27/2017 | 2:54:24 PM
Re: IoT Great to say $2.9 billion because if it hits $3b anaylst targets will be exceeded!

What fun with numbers. 
Ariella 3/26/2017 | 10:45:13 AM
Re: IoT @Scott Are you one of those people who like round numbers? I recall reading a report about it in which the figure was $2.9 billion. I commented on the time on the specificity of it because it didn't round up all the way to an even three. Perhaps they feel it will look more credible to say 2.9 because it looks like it's much more exact. That was a trick one of my relatives liked to use for invitations. Instead of setting a time to come on the hour or on the half hour, she'd deliberately put in an odd time, say 7:09. She said people paid more attention to it then and were more likely to come closer to the time set.
danielcawrey 3/25/2017 | 3:27:05 PM
IoT I would think SD-WAN would also be usefule for IoT applications as well. 

Sure, a lot of connected device won't need a ton of throughput. But with software, these things can be much more easily provisioned. 
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