Enterprises Can't Get Enough SASE as Spending Grows 33 Percent in 3Q 2023, According to Dell'Oro Group

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Dec 07, 2023, 08:00 ET

Zscaler First SASE Vendor to Exceed $400 M In Single Quarter

REDWOOD CITY, Calif., Dec. 7, 2023 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the overall 3Q 2023 SASE market – consisting of SD-WAN and SSE (security service edge) solutions – grew a vigorous 33 percent revenue to $2.2B, which set a new record. The SSE and SD-WAN portions of the SASE market have nearly doubled in the last ten quarters, indicating that enterprises are thinking about both sides (networking and security) of the SASE coin.

"Although other networking and security technology markets have started to show clear struggles in a volatile macroeconomic environment, enterprises know they need to continue to invest for the future that will have hybrid work and cloud-based applications as the norm, and for many, SASE is the right approach," said Mauricio Sanchez, Sr. Research Director, Enterprise Networking and Security at Dell'Oro Group. "While SASE still has an on-premises hardware component, we see those vendors emphasizing delivering network and security services from the cloud starting to stand out," added Sanchez.

Additional highlights from the 3Q 2023 SASE and SD-WAN Quarterly Report:

Zscaler retook from Cisco the number one revenue spot in overall SASE and was the first to exceed $400M in quarterly revenue.
The top 5 overall SASE vendors were Zscaler, Cisco, Palo Alto Networks, Broadcom(Symantec), and Fortinet.
Revenue associated with single-vendor SASE (vendors that offer both SD-WAN and SSE) grew nearly 60 percent Y/Y and represented over half the SASE market.
The top 5 single-vendor SASE vendors were Cisco, Palo Alto Networks, Fortinet, Netskope, and Versa Networks.
The overall SASE market is on track to surpass $8B for the full year 2023.

About the Report
The Dell'Oro Group SASE & SD-WAN report includes manufacturers' revenue covering the SASE and Access Router markets. In addition, the report analyzes the SASE market from two perspectives: technology (SD-WAN networking and SSE security) and implementation (unified and disaggregated). The report also provides unit information for the Access Router market. To purchase this report, please contact us at [email protected].

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit https://www.delloro.com.

SOURCE Dell'Oro Group