SD-WAN market surges in 2019

October 10, 2019 //By Jean-Pierre Joosting
SD-WAN market surges in 2019
According to IHS Markit | Technology, the global software-defined wide area networking (SD-WAN) market, including appliances and control and management software, rose 23 percent sequentially in the second quarter of 2019 as corporations ramped up purchases to replace their installed base of routers with SD-WAN-enabled equipment.

During the second quarter, large enterprises began an effort to swap their existing routers with SD-WAN technology. These efforts have been extensive, with some deployments reaching as many as 5,000 sites for a single customer, as reported by the Data Center Network Equipment Market Tracker from IHS Markit | Technology.

“In our discussions with vendors, it has become apparent that most recognize SD-WAN as a mainstream technology,” said Josh Bancroft, senior research analyst at IHS Markit. “As a result, larger enterprises have begun to refresh their legacy, router-centric WANs with SD-WAN. Vendors are capitalizing on the refresh opportunities with customers that have large bases of aging router equipment.”

The rising number of remote and mobile workers will continue to be an important growth driver for SD-WAN appliances. Despite that fact that compact appliances are the most cost-effective for home-office based deployments, traditional SD-WAN appliances are still being installed in home-office environments. Up to 200 appliances were installed in radiologists’ homes in the North America in the second quarter.

“In the future, we anticipate further deployments of SD-WAN appliances in the homes of remote employees, with either compact or more traditional appliance form factors being used,” Bancroft said. “Bonding LTE and broadband links ensure session failover for unified communications (UC) users. It also promotes the security of sensitive patient data through security policies that can be established at the device level by healthcare providers in orchestration portals.”

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