Software-defined wide area networking (SD-WAN) vendors are scrambling to grab market share. IHS Markit Analyst Cliff Grossner provided numbers to those leading the pack.
According to the IHS Technology Data Center Network Equipment Quarterly Market Tracker report, there was a total of $38.5 million in SD-WAN revenue during the first quarter of 2017.
Viptela had a strong lead with $7.7 million in revenue, or 21 percent of the total market share; VeloCloud claimed $4.9 million in revenue, or 14 percent of the market; and Talari Networks brought in $3.8 million in revenue — 11 percent of the market share for the quarter, according to the report.
Viptela was the distinguished leading SD-WAN vendor having double the market share than Talari Networks — the No. 3 spot. Cisco is in the process of acquiring Viptela in a $610 million cash deal, confirming the company’s success.
While the SD-WAN market still has a lot of maturing to do, Grossner said he thinks there is little room for a new wave of vendors at this point. “I think the market for base transport solutions is fairly established,” he said.
However, there are a few things to pay attention to beyond revenue when it comes to differentiating these SD-WAN vendors, Grossner explained. Many vendors provide different levels of additional services in their products like security, monitoring, WAN optimization, dynamic path routing, and transport options.
IHS also sees value in channel partnerships because these can help vendors grow a direct connection into the enterprise, which is where SD-WAN is gaining the most traction. This relates directly to how easily a vendor is able to sell its product and prove how the product can scale and meet demand, Grossner said.