Cisco’s recent move to discontinue a legacy multicloud networking software controller in favor of an SD-WAN-based platform hints at a broader slowing of the once hot multicloud network software space, though analyst firm Analysys Mason thinks market vendors can re-accelerate that interest if they follow the security integration path pioneered by the secure access service edge (SASE) market.

Analysys Mason Research Director Gorkem Yigit noted in the report that the multicloud networking software space has seen rapid growth over the past several years, “driven by enterprises’ need to connect distributed applications across multiple clouds efficiently.” However, Yigit also pointed to Cisco’s move earlier this year to discontinue its Cloud Network Controller platform in favor of its SD-WAN Cloud OnRamp, and the move by Aviatrix to keep segment results closer to its vest as a signal that while the multicloud networking market “is expanding, it has lost some of the initial momentum.”

The research firm linked some of this slowdown to how different teams within an enterprise view the additional layer of multicloud networking software might add to an already complex IT operational stack, specifically pointing to team demographics.

“Younger members of the cloud team, such as those in DevOps, are usually driving its adoption, while traditional buyers like NetOps and data center owners have been slower to embrace it,” Yigit wrote.

Gartner’s Andrew Lerner further parsed out this deployment model during an analyst conference in late 2022, explaining that enterprises typically buy multicloud networking software and install it in a cloud provider’s environment like Amazon Web Services (AWS), Microsoft Azure, or Google Cloud. Those purchasing decisions are driven by the need for a certain networking feature that doesn’t natively exist in an organization’s cloud environments, like route encryption or improved troubleshooting capabilities.

“Or, they buy it because they want the same consistent stack in multiple environments so they don’t have to have three different sets of networking stacks to deal with,” Lerner said at that time.

IDC held similar growth expectations for the market, noting in a report that it expected “to see an early inflection point in enterprise adoption during 2024.” The firm pegged that growth to artificial intelligence (AI) workloads, application and business resiliency, and cybersecurity, which it deemed “among the top demand drivers anchoring the adoption of multicloud networking platforms and services.”

Multicloud networking software needs a new acronym

Analysys Mason’s Yigit thinks multicloud networking software vendors can re-invigorate the market by bolstering their platforms into a comprehensive offering that shifts its perception from a simple point connectivity management tool to one that can handle a broader array of applications. Yigit likened this approach to what SD-WAN vendors did with SASE.

“Just as SASE unified networking and security to enhance user access across distributed environments, [multicloud networking] software should be positioned as a holistic platform for enterprise application networking and management, serving as a single, coherent networking fabric and orchestration framework across any cloud (public, private, edge), while streamlining vendor, technology, and tool silos in existing application environments,” Yigit recommends.

Analysys Mason also follows the SASE model by offering up its own new label and acronym to this approach: application connectivity, security, optimization, and network intelligence (ACSON). It might not roll off the tongue as well as what Gartner did with SASE, but it’s a start.

“An ACSON platform would converge these components into a seamlessly integrated, cloud-native system, providing a single pane of glass for management and visibility, centralized intelligence, and an integrated partner ecosystem of solutions for greater consistency, reduced complexity, and more automated application environments,” Yigit explained of this approach, adding that it can also integrate with SASE and underlay networks to support service level agreements and security requirements.

Some firms are already moving down this acronym path, with Analysys Mason pointing to deals between Equinix and Megaport with multicloud networking software vendors like Aviatrix and Prosimo, and a more recent deal between IBM and Vapor IO.

Yigit specifically pointed to F5, which has boosted its capabilities by acquiring Volterra and Nginx; Prosimo, which is working with Equinix and Palo Alto Networks; IBM and its Hybrid Mesh platform; and Aviatrix, which is expanding its security capabilities.

“Overall, we expect that the winners in the [multicloud networking] software landscape will be those that can successfully transition into broader, application-centric platforms, such as ACSON; bring DevOps, CloudOps, SecOps, and NetOps worlds closer together; and win the minds and wallets of corporate decision makers and traditional buyers,” Yigit concluded.