2023 has been a banner year for SD-WAN, with the technology continuing to mature and become increasingly essential for businesses of all sizes. SD-WAN adoption is being driven by multiple factors. For one, applications continue to migrate to the cloud, which requires WANs to be re-architected to meet a more distributed environment from the traditional hub-and-spoke data center model. The move toward secure access service edge (SASE) where SD-WAN is more tightly integrated with security services edge (SSE) is also driving adoption.
With analysis firm IDC predicting the SD-WAN market will reach $7.5 billion with a Compound Annual Growth Rate of 10.1% by 2027, SD-WAN will remain one of the most important markets in Enterprise networking for the foreseeable future.
In 2024, expect even greater convergence of SD-WAN with SASE solutions, artificial intelligence (AI) to play a more significant role in optimizing network performance and automating routine tasks, increased demand for SD-WAN solutions that can effectively manage traffic at the edge of the network, and continued integration with other emerging technologies like 5G and Wi-Fi 6.
Before we get to that future, though, let’s take a look at the recent past. Here are our top 10 SD-WAN stories of 2023:
1. Cisco SD-WAN outage concerns users, impacts businessesCisco Viptela SD-WAN customers suffered network downtime due to expired hardware certificates on vEdge 1000, 2000 and Edge 1000 devices. Users expressed frustration online, highlighting the potential impact on businesses worldwide.
Cisco's recommended solutions, including manual date/time changes and timer extensions, were deemed inadequate by many. A certificate replacement is expected as the main fix, but testing and validation were still ongoing when this story went to press. Read more.
2. SD-WAN by the numbers: Market size, growth, adoptionSD-WAN market is expected to grow significantly in the coming years, with analysts predicting a healthy CAGR of 14.1% from 2021 to 2026. For 2023 alone, the market is expected to reach $5.3 billion in revenue, representing a year-over-year growth of 17.7%. This growth is likely to continue, with the market reaching nearly $7.2 billion by 2026.
This growth is being driven by several factors, including the increasing adoption of cloud-based applications, the need for more efficient WAN connectivity, and the growing popularity of Software-as-a-Service and other managed services.
SD-WAN offers many benefits over traditional WAN technologies, including reduced costs, improved performance, increased agility and improved security. As a result of these benefits, SD-WAN is becoming increasingly popular among businesses of all sizes. A recent survey by research firm IDC found that 75% of enterprises are planning to deploy or are already using SD-WAN. Read more.
3. IDC makes SD-WAN picks: Why Cisco, Fortinet, Aruba, Palo Alto Networks and VMware lead the packIDC's 2022 Global SD-WAN Survey reveals strong adoption, with nearly one-third expecting over 20% WAN cost savings. This surge is driven by cloud adoption, SASE architectures and easier management.
IDC evaluated 12 vendors and identified Cisco, Fortinet, Aruba, Palo Alto Networks and VMware as leaders due to their integration of SD-WAN with security and AI capabilities. The firm named Aryaka, Barracuda Networks, H3C, Huawei, Juniper Networks, Nokia and Versa Networks as major players or contenders. Read more.
4. Gartner Magic Quadrant reveals SD-WAN leaders, plus SASE and genAI trendsGartner's Magic Quadrant highlights the rise of genAI in SD-WAN, predicting its use in 20% of initial network configurations by 2026. This trend, along with SASE integration, is driving SD-WAN market growth, with a 14.6% CAGR forecast from 2022 to 2027. Leaders in the Magic Quadrant, including Cisco, Fortinet, HPE (Aruba), Palo Alto Networks, Versa Networks and VMware, are actively incorporating AI and SASE capabilities into their offerings. Read more.
5. SD-WAN tips from the trenchesTransitioning to SD-WAN offers potential benefits to enterprises with several branch locations seeking to connect to a central hub or cover multiple locations in a large campus. Gain insight into the challenges, advantages, and best practices from users that have rolled out Fortinet Secure SD-WAN. Read more.
6. What does the future hold for software-defined networking (SDN)? A look at next-gen SD-WANsAs vendors and enterprises enter a new era of networking, what does a next-generation SD-WAN look like? Analysts and vendors agree that four innovations will power the next generation of SD-WANs: SASE, AI, multicloud and networking-as-a-service (NaaS).
While considered by many to be a mature technology, it’s clear that the need for SD-WANs is as strong as ever. However, as data, network automation and efficiency, and security demands continue to grow more complex, next-generation SD-WANs will rely on many supporting technologies. Read more.
7. How 5G will power SD-WANs of the future5G is poised to revolutionize SD-WANs by offering faster speeds, lower latency and more flexible connectivity options. This will enable greater agility, scalability, and cost-efficiency for businesses. With features like fixed wireless access (Fixed-Wireless Access) and multi-access edge compute (MEC), 5G will empower SD-WANs to efficiently manage distributed workloads and enhance user experiences.
However, the full potential of 5G for SD-WANs won't be realized overnight. Standardization, testing and integration with existing infrastructure are still ongoing challenges. Nevertheless, 5G is expected to be a game changer for SD-WANs, shaping the future of network connectivity. Read more.
8. Kyndryl’s SD-WAN path now paved with Palo Alto Networks potentialIn October, Kyndryl chose Palo Alto Networks for managed SD-WAN service, integrating their Prisma SD-WAN platform with Kyndryl's network management and security offerings. This partnership offers SASE capabilities to Kyndryl's customers, enabling secure and reliable network access for their cloud and edge applications. The move comes as the SD-WAN market continues to grow, driven by the increasing adoption of cloud-based applications and the need for efficient WAN connectivity. Read more.
9. AT&T, Orange, Verizon top two managed SD-WAN ranking listsAT&T, Orange Business and Verizon garnered top marks from a pair of research firms in their latest ranking of worldwide managed SD-WAN providers, with one stating that the U.S. accounts for the largest share of consumed SD-WAN services.
Their leadership was attributed to continued investments in SD-WAN services, including security integration and mobile 5G integration. Consulting firm Wipro and research firm Vertical Systems Group both recognized these three providers for their global reach and market share in managed SD-WAN. The SD-WAN market is expected to grow significantly in the coming years, driven by increasing cloud adoption and the need for efficient WAN connectivity. Read more.
10. Cisco launches long-simmering AWS SD-WAN integrationCisco launched its integrated SD-WAN platform on AWS Cloud WAN, offering seamless connectivity for organizations and simplifying access to AWS workloads and services. This integration comes after Cisco's initial announcement of the collaboration nearly a year ago and addresses the growing demand for cloud-based network solutions. Users will now benefit from a unified network experience with improved performance and enhanced security. Read more.
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