SD-WAN Market Expected to Hit $1.3B by 2020, IHS Says

Source of the news: https://www.sdxcentral.com/articles/news/sd-wan-market-expected-1-3b-2020-ihs-says/2016/09/

By 2020, the software-defined wide area networking (SD-WAN) segment is expected to total $1.3 billion, marking triple-digit growth above 90 percent per year through 2020, according to an IHS report from IHS Markit Senior Research Director, Cliff Grossner.

The global revenue for data center network equipment, which includes application delivery controllers (ADCs), SD-WAN and WAN optimization appliances reached $3.1 billion in the second quarter of 2016, growing 11 percent from a year ago.

IHS analysts anticipate there will be a slowdown in the SD-WAN market until 2018, followed by an increase to 2020 as more begin to adopt SD-WAN. It is expected to make up 71 percent of WAN optimization revenue in 2020.

SD-WAN is causing a significant shift in enterprise WAN architecture as it delivers improved application performance at a fraction of the cost of traditional MPLS links, the report says. It can be delivered by a service provider from an off-premises cloud, changing the delivery of the WAN market.

SD-WAN vendors are also quickly entering the market with companies like Cisco, Juniper, and Nokia’s Nuage all offering the technology. However, the market has only been existed for about 20 months, and the SD-WAN revenue was only $37.9 million in 2015. It is fair to say that there is still a lot of growth to be seen in this area before 2020.

However, some of the early SD-WAN companies have deployed their technologies and have proven it to be a promising investment. Some early SD-WAN startups include Aryaka, CloudGenix, Silver Peak, Talari, TELoIP, VeloCloud, Versa Networks, and Viptela.

Calsoft SDN Expertise

Calsoft has expertise in various commercially available controllers and open source SDN controllers (OpenDayLight, OpenContrail and others), developing SDN applications.

[Tweet “SD-WAN Market Expected to Hit $1.3B by 2020, IHS Says”]

Save