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August 25, 2017

All Eyes Are On the SD-WAN Market

If there is one technology that every business leader should be aware of right now, it’s software-defined wide area networking (SD-WAN).

According to a new report, growth in SD-WAN technology tools and network-as-a-service (NaaS) revenues will exceed 30 percent annually for the next five years — accelerating to 75 to 100 percent growth from 2017 to 2018.

What’s more, total SD-WAN tools and NaaS revenue will approach $1 billion by as soon as 2019. This figure will increase to $1.6 billion by 2021.

What exactly is SD-WAN?

Just as the name suggests, this technology refers to a type of software-defined networking (SDN) that is specifically associated with WAN connections. WAN connections, in case you are new to the term, are used to connect private networks over large distances.

Taking a software-defined approach to WAN connectivity involves migrating away from the traditional proprietary hardware that was required for connecting disparate branch offices and corporate data centers, and moving this infrastructure into the cloud.

SD-WAN setups are typically open, more cost-effective and highly responsive. They are a far cry from the fixed, rigid and expensive WAN networks of the past. As such, the report explains, SD-WAN is bound to take market share away from existing hardware-based virtual private networks (VPNs), application delivery controllers (ADC) and WAN opt markets.

There are several use cases for SD-WAN implementations, some of which include:

  • Broadband link balancing
  • Application performance enhancement
  • WAN optimization
  • Cloud virtual private networks (VPN)

Cloud demand is driving SD-WAN adoption

In the past, businesses purchased WAN connectivity mostly for internal enterprise network connectivity purposes. But now, enterprises are buying network services and bandwidth to connect to cloud services. It’s a big shift away from the way that networks were designed over the last several years. And cloud computing, it should be noted, is expected to increase from $67 billion in 2015 to an astounding $162 billion in 2020.

Don’t go it alone with SD-WAN

Keep in mind that SD-WAN is still very much an emerging technology, and it’s not perfect yet. Many businesses are struggling to transition to SD-WAN environments. Extensive planning and testing is required, and in some cases it involves re-educating IT staff members.

What’s more, it can be difficult shopping for vendors and negotiating service contracts. And for these reasons, it pays to have the assistance of a dedicated managed service provider (MSP) who can offer expert guidance along every step of the SD-WAN migration process.

Apex Technology Services is an MSP serving greater New York City and beyond. Apex can help your organization navigate the complexities of this emerging market, ensuring a smooth and seamless transition to an SD-WAN environment.

To learn more about Apex, click here

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