Story image

SD-WAN infrastructure market growth continues unabated

09 Aug 2018

IDC has published two new reports showing that Software-Defined Wide Area Network (SD-WAN) infrastructure market will reach $4.5 billion by 2022 growing at a 40.4% CAG.

The IDC Market Share report, IDC's first for this segment, includes 2016 and 2017 revenues by vendor for SD-WAN infrastructure.

"The emergence of SD-WAN technology has been one of the fastest industry transformations we have seen in years,” says IDC network infrastructure vice president Rohit Mehra.

“Organisations of all sizes are modernising their Wide Area Networks to provide an improved user experience for a range of cloud-enabled applications. Incumbent networking vendors have quickly realigned their routing and WAN optimisation portfolios to take on the growing cadre of startups in this market.

“Enabled by a rapid uptake across the service provider domain, SD-WAN infrastructure will continue to grow rapidly in the coming years, providing a beachhead for other software-defined networking and security functions in the enterprise branch."

SD-WAN infrastructure revenues increased 83.3% in 2017 to reach $833 million.

The market has also become increasingly competitive, with traditional networking vendors looking to M&A strategies to complement their existing offerings or gain a foothold in this rapidly-expanding market.

IDC found that Cisco holds the largest share of the SD-WAN infrastructure market, fueled by its extensive routing portfolio that is used in SD-WAN deployments, as well as its Meraki offering and its August 2017 acquisition of Viptela.

VMware, which in December 2017 purchased VeloCloud, holds the second largest market share in the SD-WAN infrastructure market, followed by Silver Peak, Riverbed, Aryaka, Nokia and Versa.

IDC's Market Share and Market Forecast reports focus specifically on the SD-WAN infrastructure market, which includes both hardware and software used in SD-WAN deployments.

IDC defines SD-WAN as an architecture that leverages a hybrid WAN using at least two or more connection types (such as MPLS, broadband internet, 3G/4G, etc.).

SD-WANs include a centralised application-based policy controller that provides intelligent path selection, along with an optional forwarder for routing capability.

The SD-WAN infrastructure Market Share and Forecast reports do not include Comms SP-provided (or other) managed services related to SD-WAN provisioning or operations, nor do they include connectivity costs.

IDC's Worldwide SD-WAN Infrastructure Forecast, 2018-2022 provides an outlook for this market across major regions for the period extending to 2022, including historical numbers through 2017 and forecast numbers from 2018 to 2022. It also provides regional geographic segmentation of the SD-WAN infrastructure market, including market sizes and CAGRs for each major region (North America, EMEA, APJ, and Latin America).

The IDC study, Worldwide 2017 SD-WAN Infrastructure Market Shares: Incumbent Networking Vendors and Startups Compete in Fast-Growing Market provides a view of worldwide SD-WAN infrastructure market shares by vendor.

The report covers significant market developments in 2017 and offers an overview of how the leading vendors performed during the year.

Virtustream launches new services for cloud applications
The new suite of professional and managed services expands Virtustream’s enterprise application and services solutions.
Secureworks Magic Quadrant Leader for Security Services
This is the 11th time Secureworks has been positioned as a Leader in the Gartner Magic Quadrant for Managed Security Services, Worldwide.
Datto expands A/NZ presence with Sydney office
This investment will enable Datto and its partners to continue to grow and address the IT needs of small and medium businesses (SMBs) in the region.
Google puts Huawei on the Android naughty list
Google has apparently suspended Huawei’s licence to use the full Android platform, according to media reports.
New Zealand Govt announces cloud framework agreement with SAP
“Data-driven solutions are the most powerful way to solve some of society’s most pressing problems."
How digitisation delivers speed to Porsche service documents
With its Service Department drowning in paperwork, Giltrap Porsche looked to Fuji Xerox New Zealand and its DocuShare Flex cloud document management solution for digital answers.
AI driving 'unprecedented' M&A growth
Breakthroughs in artificial intelligence are causing ‘unprecedented’ growth for mergers and acquisitions, as companies grapple for their share of an AI market that will be worth $190 billion by 2025.
DimData: Fear finally setting in amongst vulnerable orgs
New data ranking the ‘cybermaturity’ of organisations reveals the most commonly targeted sectors are also the most prepared to deal with the ever-evolving threat landscape.