SD-WAN Revenue Shrinking? the COVID-19 impact

Well it’s not all upside is it comes to SD-WAN. Vertical Systems Group has been measuring the anticipated impact of SD-WAN revenues throughthe rest of 2020 and beyond. While some organizations are reaping the benefits of the pandemic, other carriers aren’t so fortunate. This truly is a story of have’s and have-not’s and it will be interesting to see which organizations flourish during this period. It appears that the top providers are gaining momentum. Our analysis is slightly different than their top three (AT&T, Hughes, and Verizon) and I’m curious if these are their proprietary solution deployments or reselling the likes of VMware, Fortinet, and Cisco or some hybrid.

Additionally, we love the analysis showing that organizations saw triple digit revenue growth selling these managed networking solutions in 2019. For 2020, @VerticalSys sees a major drop to 17% growth driven primarily through the pandemic. They also anticipate a holiday rebound for businesses and growth in 2021. This makes sense as many organizations are struggling to figure out what to do with their branch offices, how employees are going to respond to coming back to work, and the general sentiment of the larger market. Previously discussed the role of high-value workers and it will be curious to see how organizations respond to that possibility. Another interesting conundrum is going to be the impact on full-time remote and the impact of 5G deployments that will begin sometime next year. It truly is an interesting time for these hybrid networking providers and hopefully the dust settles in the near future so we have a better understanding of what’s ahead.

You can read their STATFlash around COVID-19 here.