& cplSiteName &

SD-WAN Market Will Hit $8B by 2021

Scott Ferguson

With enterprises investing in digital transformation, as well as underlying technologies such as cloud computing, mobile, social and big data, IT is increasingly looking to software-defined wide area networking (SD-WAN) to help meet its connectivity needs. This, in turn, is creating a new market.

By 2021, the SD-WAN market could be worth about $8.05 billion, according to a new report from IDC. That equals out to a compound annual growth rate (CAGR) of about 70% over the next four years.

The IDC report points out that commercial SD-WAN offerings remain fairly new but companies are looking for better, and cheaper, networking technologies. (See SD-WAN Market Soaring to Nearly $3B, Report Finds.)

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

The July 27 report from IDC finds three factor driving this increased interest in SD-WAN.

The first is digital transformation, which requires enterprises to invest in a host of technologies, including cloud and big data, and the additions of these tools "generally increases network workloads and elevates the network's end-to-end importance to business operations."

A recent study found that digital transformation is a real concern for IT managers and CIOs, and that many believe this digital project will fail. If SD-WAN can offer a cheaper and better alternative, managers would want to invest. (See Digital Transformation Causing Sleepless Nights for IT – Study.)

The second reason SD-WAN is on the rise is the increased use of software-as-a-service (SaaS). While more traditional MPLS-based WAN connectivity tools were not designed for the cloud, SD-WAN has the ability to optimize these cloud-based applications, especially for remote or branch locations. This is especially important with applications such as unified communications and collaboration (UCC).

Keep up with the latest enterprise cloud news and insights. Sign up for the weekly Enterprise Cloud News newsletter.

"SD-WAN is increasingly leveraged to provide dynamic connectivity optimization and path selection in a policy-driven, centrally manageable distributed network architecture," according to IDC.

Finally, the report noted that the increase use of software-defined networking (SDN) in the enterprise data center has helped SD-WAN gain more traction with IT departments as a trusted technology, especially on the networking side.

"Traditional WANs were not architected for the cloud and are also poorly suited to the security requirements associated with distributed and cloud-based applications," Rohit Mehra, IDC's vice president for Network Infrastructure, wrote in the report. "And, while hybrid WAN emerged to meet some of these next-generation connectivity challenges, SD-WAN builds on hybrid WAN to offer a more complete solution."

Related posts:

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

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Scott Ferguson
From its roots in industrial farm machinery and other equipment, John Deere has always looked for a technological edge. About 20 years ago, it was GPS and then 4G LTE. Now it's turning its attention to AI, machine learning and IoT.
Artificial intelligence and automation will become more integral to the enterprise, and 90% of all apps will have integrated AI capabilities by 2020, according to Oracle CEO Mark Hurd.
IBM is now offering access to Nvidia's Tesla V100 GPUs through its cloud offerings to help accelerate AI, HPC and other high-throughput workloads.
CIO Rhonda Gass is spearheading an effort to bring more automation and IoT to the factories making Stanley Black & Decker tools and other equipment.
Workday is looking to build out its machine learning and artificial intelligence capabilities with the acquisition of startup SkipFlag.
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
I'm Back for the Future of Communications
Phil Harvey, US News Editor, 4/20/2018
BDAC Blowback – Ex-Chair Arrested
Mari Silbey, Senior Editor, Cable/Video, 4/17/2018
Verizon: Lack of Interoperability, Consistency Slows Automation
Carol Wilson, Editor-at-large, 4/18/2018
AT&T Exec Dishes That He's Not So Hot on Rival-Partner Comcast
Mari Silbey, Senior Editor, Cable/Video, 4/19/2018
US Govt. Bans Domestic Component Sales to ZTE
Dan Jones, Mobile Editor, 4/16/2018
Animals with Phones
I Heard There Was a Dresscode... Click Here
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed