The WAN market is witnessing a radical shift as SD-WANs or software-defined WANs are gradually taking over the router market. SD-WAN is a substitute for traditional router and supports multiple types of network connections including broadband, MPLS, 3G and LTE by incorporating a centralized software. This feature reduces dependency on MPLS links which are expensive and also reduces the complexity of configuration of WANs, therefore making SD-WANa primary choice. The market sees immense opportunities in future and is expected to grow at a very high growth rate during the next five years.
SD-WANs can be deployed in any business which uses SaaS applications such as Office 365 or Unified Communication (UC) services. These can also be used for businesses where the company has a large number of branch office locations or substantial number of remote users.
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One of the most important drivers for SD-WAN is its cost savings feature. More number of businesses are deploying SD-WAN as it works on pay-as-you-grow and subscription models. Its average subscription fee is between US$ 100 to US$ 150 per month, which is very cheap as compared to thousands of dollars spent on a WAN router.
SD-WAN when implemented on a large scale might face security challenges. At a large scale, SD-WAN would consist of heterogeneous networks ranging from legacy networks to next generation IoT-enabled networks which might lack standardized security protocols.
Trends prevailing in the SD-WAN Market:
A major trend prevailing in the market is the entrance of large number of start-ups and multiple system operators (MSOs) in the SD-WAN market, which is changing the traditional WAN value-chain.
Global SD-WAN Market: Market Segmentation
Global SD-WAN Market can be divided into three segments, based on sales channel, deployment type and end-users.
Segmentation on basis of sales channel in SD-WAN market:
The sales channel segments in SD-WAN market include:
- Value-added reseller (VAR)
- Managed service provider (MSP)
- Service providers
Segmentation on basis of deployment type of SD-WAN Market:
The major segments of SD-WAN market on basis of deployment type include:
- Cloud delivered solution
- On-premises solution
Segmentation on basis of end-users for SD-WAN Market:
The major segments of SD-WAN market on basis of end-users include:
- IT & Telecom
- OthersThe SD-WAN market landscape has three categories of vendors which includes traditional routing or networking companies, companies with specialized WAN optimization & virtualization offerings and start-ups providing point solutions for SD-WAN. The main differentiating factors for SD-WAN vendors would be the ease of configuration and monitoring provided by controllers.
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Some of the prominent players in the SD-WAN market include Cisco, Citrix, CloudGenix, Cybera, FatPipe Networks, Mushroom Networks, Nuage Networks, Silver Peak, Talari, VeloCloud, Versa Networks and Viptela among others.
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