Companies are shifting from traditional connections over software-defined wide-area networks (SD-WAN) to secure access service edge (SASE) as cyber threats drive demand for unified network and security architectures, new analysis from GlobalData has shown.

The rise of hybrid work, cloud adoption, and new security threats are making fragmented branch security stacks harder to manage. In response, the report suggests enterprises are increasingly turning to SASE, the broader cloud-based framework that combines networking and security into a unified service delivered from the cloud, the research indicated.

Steven J. Schuchart, principal analyst of enterprise security and infrastructure at GlobalData, said: “It has become increasingly clear that most SD-WAN implementations going forward are going to be tied to security. Networking and security have been slowly merging for years, and the continual rise of cybersecurity incidents worldwide will only accelerate that trend.”

Instead of deploying separate hardware boxes or security tools at each site, the cloud-based model blends SD-WAN with firewalls, secure web gateways, Cloud Access Security Broker (CASB), Zero Trust Network Access, and threat protection in one platform. This allows users to connect securely and consistently to applications through nearby cloud points of presence, from any location.

Over the past decade, SD-WAN has played an important role, contributing to routing efficiency, centralized management, and broadband cost savings. Its single-pane-of-glass model, policy-driven traffic handling, and support for Zero Trust Network Access are said to have popularized the adoption.

While some standalone SD-WAN deployments will remain, they are now expected to decline as enterprises pursue integrated architectures that cut Multiprotocol Label Switching (MPLS) reliance and provide consistent, secure access across branches and remote workers.

Some SD-WAN market dynamics also shifted over 2025 with major deals such as HPE’s acquisition of Juniper and Arista’s purchase of VMware’s Velocloud SD-WAN.

HPE’s acquisition supported its goal of strengthening its presence in the AI and hybrid cloud market, while Arista’s move solidified its presence in the SD-WAN space to align with the vendor’s broader wireless LAN (WLAN) focus.

Other operators, including Cisco, Palo Alto Networks, Fortinet, and Versa Networks, have been identified as industry leaders, helping define the next stage of SASE, as they advance with established networking or security expertise.

More recently, Cisco updated its SD-WAN integration with Megaport for on-demand AI data center access to help enterprises connect with AI data centers for high-performance networking that can handle AI workloads.

Using Cisco’s Cloud OnRamp automation and multicloud optimization features, users can connect to AI workloads hosted by major public clouds and neoclouds. The network giant claimed users can expect faster deployment of AI connectivity, along with improved visibility into traffic patterns, performance, and security postures.

On the other side of the globe, Australian telecom operator Macquarie joined forces with Netskope in October to boost cybersecurity measures for its users. After Australian businesses suffered a stark increase in cybersecurity attacks in recent years, including a regional pharmacy in Queensland, security vigilance has increased.

With the integration of Netskope’s security service edge (SSE) platform into Macquarie Telecom’s SD-WAN, the duo is expected to provide SASE, a move they said would help users better secure their networks and enable them to adopt cloud and AI technologies for business.