SD-WAN investment surged past $1 billion in 2019. This MPLS alternative is growing like crazy over- almost 70% in 2019. Today, market share leaders including Cisco Versa networks, VMware, and Silver Peak combined the majority of revenue making up almost 70%. As we head into 2020 expect additional enterprise investment and SD-WAN to become more integrated into global networks as organizations continue to accelerate their digital transformation initiatives. 2025 is the magic year for SD-WAn providers. By the middle of this decade, SD-WAN should completely usurp legacy networking tech as MPLS continues its slow decline. The top reasons organizations are trying to move through this process include decrease hardware costs, Augmenting personnel expenses, and security.
Decreased Hardware Costs
Businesses are finding that maintaining and managing their hardware is expensive and very consuming of personnel and resources. Virtualization is decreasing as expensive as lowering
maintenance requirements throughout the enterprise. These cost savings are allowing companies to speed up digital transformation helping companies retire expensive legacy technologies and re-architecting their networking infrastructure. This shifting tide towards single platforms should unify the edge, optimize enterprises, and simplify / consolidate.
Virtual cloud networking and SD-WAN is helping IT professionals control and connect to resources to handle digital transformation issues. Historically these applications were hosted in the data centers or locally, but now with as-a-Service (aaS) offerings including infrastructure (IaaS), software (SaaS) etc. are helping companies see increased benefit from SD-WAN type networking and technologies. A major feature for SD-WAN includes prioritization features that help select which applications consume bandwidth and when flexibility is critical. These efficiency gains help organizations decrease costs.
Virtualization of the network enables obvious security gains through stronger network design, patch enablement, and isolation of applications and data. These Sd-WAN solutions include secure end to end encryption, zone-based firewalls, and visibility and control of all data and apps. These tools decrease network risk to services and change how data interact with eachother.
SD-WAN heading into 2025
If an organization is considering deploying SD-WAN, they can see real benefits by decreasing costs and increasing a multitude of productivity opportunities. Reliance on legacy hardware has become an achilles heel. Additionally, 4G/LTE is a great solution that integrates with SD-WAN to minimize risks associated with disaster recovery and enabling business continuity. The jury is still out on the impact of 5G.