US managed SD-WAN services market tops $282m

12 December 2018 | Jason McGee-Abe

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US revenue is estimated at more than $282 million for managed SD-WAN services in 2018, according to new Vertical Systems Group research.

"Carrier-grade managed SD-WAN Services in the US began to generate notable revenue in the second half of 2018. Prior to this, most providers supported customers with pilot SD-WAN services that were not substantively monetised," said Rick Malone, principal of Vertical Systems Group. 

"For 2019, we expect a major boost in revenue with network operators fully ramped up to sell, deliver and support managed SD-WAN services. Moreover, a key driver for managed services is the growing appreciation that migration to SD-WAN is considerably more complex than the promise of 'easily deployed' plug-and-play DIY solutions."

Vertical Systems Group has initiated coverage of the carrier-based managed SD-WAN services market with a focus on service migration, network connectivity and market sizing. Research content available now includes: managed SD-WAN purchase drivers, customers, WAN access connections, site configuration profiles, pricing and revenue. The Group said the $282 million figure is based on billable US customer sites and WAN access connections installed and under management.

A managed SD-WAN service is defined as a carrier-grade network offering for enterprise and business customers, which is managed by a network operator, and delivered over a software-defined network (SDN) service architecture that has separate control (overlay) and data (underlay) planes. Not included in this analysis are DIY (Do It Yourself) SD-WAN solutions purchased directly from an SD-WAN technology supplier or a systems integrator.

Providers actively selling managed SD-WAN services in the US include the following companies (in alphabetical order): Aryaka, AT&T, CenturyLink, Cogent, Comcast, Fusion Connect, GTT, Hughes, Masergy, MetTel, Sprint, Verizon, Windstream and Zayo. Other network operators throughout the world offer or plan to offer managed SD-WAN services in the US market.

Vertical Systems Group said it will release the first managed SD-WAN services Leaderboard in early 2019 and the benchmark will rank the top providers of managed SD-WAN services based on US market share results for year-end 2018.