SD-WAN market to reach $2.5bn by 2021
26 June 2018 | Natalie Bannerman
Research and analysis technology company Futuriom has revealed that the SD-WAN market is to top $1.5 billion by 2019 and $2.5 billion by the year 2021.
Both figures are related to SD-WAN tools and network-as-a-service (NaaS) revenue for non-legacy service providers.
In its latest report 2018 SD-WAN Growth Outlook, Futuriom spoke to various enterprises, service providers and technology companies about the trends driving SD-WAN technologies.
Overall the report found that SD-WAN is accelerating because of broad market acceptance as enterprises start to see direct return-on-investment in deploying cloud-managed WAN. Further to this the report found that the key drivers of this SD-WAN growth are service agility and operational expenditure cost savings including bandwidth costs.
Futuriom says that networks are more important than ever because of their abloty to connect consumers with digital content and enterprise users with critical business applications, therefore SD-WAN technology represents a step forward in building adaptive networks to suit these needs while lowering operating expenditure.
Other findings include the news that Aryaka, VMware/Velocloud, and Silver Peak could exceed $100 million in annual revenue in 2018. It also writes that include Aryaka, Cato Networks, Cradlepoint, FatPipe, Silver Peak, and Versa Networks are the top contenders for an initial public offering (IPO) or major acquisition in the next few years, due to its increasing momentum.
Cato Networks and Versa Networks the two biggest players focusing heavily on security specialisation which in turn has elevated the need for security integration into SD-WAN portfolios.
As bandwidth demands soar from both consumer and business needs, businesses are looking for better ways to manage, route, and secure the bits. SD-WAN enables network managers to plan network needs with software-based design and configuration that can be changed and managed centrally. It also enables IT and network staff to use growing broadband Internet capabilities to lower the cost of operational expenditure.
Pure-play SD-WAN tools for DIY and NaaS solutions are more attractive to customers than services provided by traditional service providers. The report states that this is because enterprises are more likely to build their own SD-WAN or purchase SD-WAN from an independent NaaS.