SD-WAN revenue reached almost $640 Million for the fourth quarter of 2019, a 75% increase ($365m over the same period in 2018). The main driver for the growth appears to be Service Providers embracing the fact that they are no longer carriers allowing them to bundle various other services including Unified Communications (UCaaS) and managed security services.
Cliff Grossner, Senior research directors for Omdia was stated as saying “The SD-WAN market is moving toward larger scale and globalized deployments…” he also cited that vendors are releasing new features around SD-WAN to support the scale needed to embrace enterprise level deployments.
VMWare is the front runner
VMware is the obvious front-runner in the SD-WAN market with over 16% total market share. Worth noting, Fortinet (as previously reported on sdwanrankings.com) is gaining significant momentum and is stealing market share quickly placing them in a surprising third-place finish for q4 2019. It will be interesting to see if they can usurp Cisco in the coming quarters.
Other interesting data points from the report include:
- The top 3 SD-WAN providers represent ~ 41% of total market share
- The Next 9 Providers (including Aryaka, SIlver Peak, Versa, Hussein, Nuage, Oracle, and Cradlepoint) represent the next 40% of market share
- The rest of the market only makes up ~19% of total SD-WAN Deployments
This means consolidation!
I expect that the top 3 or 4 SD-WAN providers look to the outliers as potential acquisition targets. The majority of the players with any meaningful wallet share either have too much venture capital (Aryaka) or are too large to consolidate. That being said, Silver Peak could be an interesting play that would be a market mover in the near term.
There is much more insight in the Omdia Data Center Report and we highly recommend checking it out here. https://technology.informa.com/550561/data-center-network-equipment-market-tracker