SD-WAN Market to Hit $6 Billion by 2020, IDC Says
The analysts say that such trends as cloud computing are driving enterprises to adopt technologies to make their WANs more agile and affordable.The fast-growing SD-WAN market could increase to more than $6 billion by 2020, according to analysts with IDC. In a report March 24, the analysts said that as cloud computing and other trends grow, businesses are looking for technologies that will enable them to deploy more agile, flexible and affordable network infrastructures for their branch offices. Software-defined networking (SDN) is gaining traction in the data center, they said. Now attention is turning to software-defined WANs (SD-WANs). "As public and private cloud use continues to grow, WAN performance becomes critical to latency-sensitive and mission-critical workloads and inter-datacenter business continuity," Rohit Mehra, vice president of network infrastructure at IDC, said in a statement. "Accordingly, as enterprises plan and implement comprehensive cloud strategies, WAN architectures need to be considered alongside, and in conjunction with, datacenter infrastructure. Moreover, as enterprises move business processes to the cloud, there is a greater need to fully integrate cloud-sourced services into WAN environments to ensure workload/application performance, availability, and security." With the rise of not only the cloud, but other trends, such as mobile computing, unified communications (UC) and bring-your-own-device (BYOD) practices, SD-WAN technologies are getting the attention of both vendors and customers. Established networking companies like Cisco Systems are building out their SD-WAN portfolios. At the same time, an array of smaller companies—such as VeloCloud, Aryaka, Talari Networks, Viptela, Silver Peak and Glue Networks—are looking to gain traction in the space, while other vendors, like WAN optimization specialist Riverbed Technology, is making a move into the market.
Other analysts also are taking notice of the SD-WAN space. Zeus Kerravala, principal analyst with ZK Research, has said the WAN has been a pain point for businesses for years, and that isn't changing.