SD-WAN Market: Established and Growing

2015 was a banner year for software-defined networking technology. A rising number of enterprises invested in and deployed SD-WAN solutions within their data centers and infrastructures, enabling them to realize all the benefits these systems have to offer.

Let’s take a closer look at the recent strides made within the SD-WAN market:

Market value growth

When examining the expanding use of SD-WAN technology, perhaps no metric is more telling than the market value. According to research from IHS Infonetics, the software-defined network market – which includes SD-WAN technology – will likely surpass a value of $1.4 billion this year. Much of this growth is directly tied into SD-WAN deployments.

“New SDN use cases continue to emerge, and the first half of 2015 was no exception with the establishment of the software-defined enterprise WAN (SD-WAN) market,” noted Cliff Grossner, IHS data center research director.

This expansion isn’t poised to stop anytime soon – by 2019, the SDN market is on track to reach a value of $12 billion.

Enterprises increased their SD-WAN spending and deployments this year.

Enterprises increased their SD-WAN spending and deployments this year.

Investments in SD-WAN technology increase

Separate IHS research found that spending on SD-WAN solutions increased this year, and will continue to rise in the near future. A survey of 150 North American enterprises showed that 45 percent were planning to boost spending on these solutions in 2015 and 2016.

A large portion of this investment growth comes as a result of the vast benefits that SD-WAN solutions can offer the typical enterprise – particularly when it comes to addressing pain points.

“The traditional WAN architecture, where you typically connect branch offices to the corporate office, and have that corporate office be the gateway to the Internet, is kind of breaking down,” Grossner told Network Computing “We’re creating virtual connectivity for the WAN controlled by an abstracted and centralized control plane, and putting a lot of automation into the enterprise WAN, allowing dynamic load balancing of the application across those physical connections.”

Working with an experienced SD-WAN provider

As more SD-WAN solutions are deployed, expert analysts have noted the importance of working with an established vendor that can address organizations’ main pain points. In its Technology Overview for SD-WAN, Gartner notes that immaturity can be a risk when it comes to SD-WAN deployments. According to the report, many SD-WAN startups may not have the financial means to maintain their brands in the current marketplace. For this reason, it’s best to leverage the solutions of an industry-leading provider with a track record for success.

“Advantages like boosting utilization of unused links and bandwidth savings are hard to ignore.”

SD-WAN becomes mainstream

Industry experts have also been buzzing about SD-WAN technology this year. In fact, network engineer and industry expert Greg Ferro dubbed 2015 the year of the WAN, noting that its advantages, like its ability to boost utilization of unused links, bandwidth savings and increasing network visibility, are hard to ignore. These make allocating funds for SD-WAN solutions much less difficult for enterprise decision-makers.

Overall, 2015 was quite the year for SD-WAN technology. It was increasingly implemented across the enterprise sector, and is poised to become an even bigger part of corporate networking in the near future.

To learn more about how an SD-WAN can transform you network, watch our latest webinar Demystifying the Software Defined WAN’ or contact us for a custom demonstration today.

Categories: Software Defined WAN (SD-WAN)


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