Agile WAN Needed: IDC’s Latest Insights

Enterprise WANs all over the globe have been under considerable strain the last few years. Companies have sought to taken advantage of new, innovative technology strategies during this period, including rising mobile device and cloud use. While transformative, these new endpoints and network traffic can create significant performance and access issues if the WAN isn’t properly supported.

This trend has been felt in nearly every industry sector, and as a result, more organizations are looking to adopt software defined WAN solutions to prevent problems like latency, jitter and packet loss. Thanks to this emerging popularity, IDC researchers are predicting great things for the SD-WAN market.

Explosive market growth

“The market will experience over a 90 percent compound annual growth rate through 2020.”

Although researchers have forecasted modest growth in this sector over the last few years, IDC shattered those predictions with its first SD-WAN market report released in late March 2016. Here, IDC researchers noted that the market will experience a more than 90 percent compound annual growth rate through 2020, one of the most impactful market predictions seen thus far.

This, in turn, will significantly expand the SD-WAN market – which was valued at $225 million in 2015 – to a $6 billion industry within the next four years.

Establishing an agile WAN

One of the biggest driving factors behind this market growth is the ability to create a robust, agile WAN capable of handling the multitude of traffic associated with today’s enterprise network activity.

As Network World noted, SD-WAN solutions take the concept of a hybrid WAN a step further, enabling IT admins to take full control over their network while providing the visibility they need into all types of network traffic. Features like a software overlay, analytics capabilities as well as the ability to control traffic according to unique policies make SD-WAN technology a beneficial investment in nearly any corporate setting.

“SD-WAN offers compelling value for its ability to defray MPLS costs, simplify and automate WAN operations, improve application traffic management, and dynamically deliver on the cost and efficiency benefits associated with intelligent path selection,” IDC analysts wrote in the report.

IDC researchers predict massive growth in the SD-WAN market over the next four years.
IDC researchers predict massive growth in the SD-WAN market over the next four years.

Addressing an array of critical needs

SD-WAN solutions have the capacity to help alleviate a range of network stressors, including some of the most common issues enterprises face today. This technology is ideal for businesses that:

  • Depend on SaaS applications.
  • Leverage real-time unified communication services, like VoIP or video conferencing.
  • Support a pool of remote mobile workers.
  • Have a large number of branch office locations.

Overall, IDC research showed that 30 percent of enterprise communication professionals have plans to deploy SD-WAN within the next two years. This will help the market reach a value of around $600 million this year, grow to $1.4 billion in 2017 and further expand to $2.6 billion by 2018.

“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,” said IDC Network Infrastructure Vice President Rohit Mehra. “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.”

To find out more about what a trusted SD-WAN solution can do for your business, contact Talari Networks for a custom demonstration today.

Categories: Software Defined WAN (SD-WAN), Application Performance/Application Quality, Network Reliability, Business Agility, Hybrid WAN