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.

Storage is all the rage, and SmartNICs are the key
Mellanox’s Kevin Deierling shares the results from a new survey that identifies the key role of the network in boosting data centre performance.
Opinion: Moving applications between cloud and data centre
OpsRamp's Bhanu Singh discusses the process of moving legacy systems and applications to the cloud, as well as pitfalls to avoid.
Global server market maintains healthy growth in Q4 2018
New data from Gartner reveals that while there was growth in the market as a whole, some of the big vendors actually declined.
Cloud application attacks in Q1 up by 65% - Proofpoint
Proofpoint found that the education sector was the most targeted of both brute-force and sophisticated phishing attempts.
Huawei to deploy Open Rack in all its public cloud data centres
Tech giant Huawei has unveiled plans to adopt Open Rack proposed by the Open Compute Project in its new public cloud data centres across the globe.
Beyond renewables: Emerging technologies for “greening” the data centre
Park Place Technologies’ CEO shares his views on innovations aside from renewable energy that can slim a data centre’s footprint.
Interview: Cisco on digital transformation and data centres at the edge
"On-premise we speak English, Amazon speaks French, and Amazon and Microsoft speak something else. But someone has to translate all of that and Cisco is involved with normalising those rule sets.”
Flashpoint: APAC companies must factor geopolitics in cyber strategies
The diverse geopolitical and economic interests of the states in the region play a significant role in driving and shaping cyber threat activity against entities operating in APAC.