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Analysts Forecast Rapid Growth for SD-WAN

Businesses are increasingly recognizing the benefits of adopting software-defined wide area networking (SD-WAN) to improve agility, network performance, scalabilty and costs. Gartner, for example, forecasts that the market will grow from an early $475 million in 2017 to $2.32 billion by 2022. Global Market Insights reports that SD-WAN held 49 percent of the North American market in 2018 and is set for 58 percent CAGR from 2019 to 2025.

Growth Driven by Application Needs

Growth is driven by driven by a rise in the adoption of business-critical, bandwidth-intensive applications that include cloud apps, video conferencing and IoT, according to Global Market Insights. Other analysts cite the increase in mobile data traffic, increasing number of cloud-based solutions, rising demand for mobility services and enterprise focus on reducing OPEX as key drivers for SD-WAN adoption. Branch networking is also a strong growth area with Gartner predicting that 30 percent of enterprises will have SD-WAN technology in their branches by the end of 2019, rising to 50 percent in the next few years.

Whatever the numbers, experts agree – SD-WAN is here to stay. And, its strongest growth area is North America, according to Markets and Markets, particularly in finance, retail, manufacturing and healthcare.

Cost is a Key Factor

Research firm IDC believes that SD-WAN adoption is important to organizations looking for ways to decrease the number of physical devices required to support applications as well as reduce the cost of maintaining technology deployed in remote locations. IDC explains that traditional WANs were not architected for the cloud and are poorly suited to the next-generation connectivity challenges and the security requirements associated with distributed and cloud-based applications.

Persistence Market Research comments that one of the most important drivers for SD-WAN is its cost-saving feature. More businesses are deploying SD-WAN on a pay-as-you-grow or subscription model. The average subscription fee is between US$ 100 to US$ 150 per month, which is cost-effective compared to thousands of dollars spent on a WAN router.

Taking WAN to the Cloud

IDC also points out that SD-WAN adoption is integral to the success of digital transformation and the continuing rise of cloud-based software-as-a-service (SaaS) applications. That makes them suitable for supporting applications such as cloud PBX, Office365 or Unified Communications.

Cloud PBX applications are a good example of the benefits SD-WAN can offer. Traditionally, hosted PBX providers have required customers to deploy dedicated WAN connections to access the service — a factor that increases costs and complexity for customers.

Although broadband connectivity had improved, the lack of QoS on broadband or Internet links was perceived as a barrier to quality and user experience. SD-WAN can overcome those challenges by assuring QoS and increasing WAN visibility to levels equivalent to dedicated private links.

Professional Services Essential

While statistics confirm the strong growth of SD-WAN across business sectors, analysts recommend enterprises to use consultancy and training services to ensure that deployments are focused on the right benefits for the business. These services will enable customers’ ability to leverage SD-WAN, plan the best strategy for network transformation and deploy the technology efficiently.

Other organizations are adopting managed SD-WAN services as a means of controlling internal costs and improving efficiency. According to the Gartner Market Guide for Managed SD-WAN Services, 2019 report, “Managed SD-WAN services can improve operations performance and reduce an enterprise’s need to grow internal capabilities. This is because the managed SD-WAN services provider becomes the single point of contact for monitoring, reporting, and incident and change management of the SD-WAN product, and all WAN transport, inclusive of access path diversity. This, in turn, allows the enterprise’s internal resources to focus on higher objectives.”

Find out more

SD-WAN is set to play a key role in the essential network transformation that enterprises need to succeed.

BroadConnect, Canada’s leading alternative solutions provider, can help you achieve that. We deliver high-performance SD-WAN solutions across Canada so if you want to find out how BroadConnect SD-WAN can transform your networks and your communications solutions, call us now to speak to an expert – 1-877-228-6616.

Jason Ali

Jason Ali

Marketing Director

Jason Stephen Ali is a seasoned Marketing professional, I hold the ultimate responsibility for my organisation’s Marketing activities and also oversee the development and delivery of a fully integrated marketing strategy for the business. Developed the BCT marketing strategy by studying economic indicators; tracking changes in supply and demand, identifying customers and their current and future needs and monitoring our competition.

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