Sales of SD-WAN Technologies to Grow at 35 Percent Compound Annual Growth Rate Over Next Five Years, According to Dell'Oro Group

SD-WAN Software Revenue to Grow Nearly Twice as Fast as Hardware Revenue

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Aug 22, 2018, 05:01 ET

REDWOOD CITY, Calif., Aug. 22, 2018 /PRNewswire/ -- A recently published report by Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, predicts that the sales of Software Defined Wide Area Network (SD-WAN) technologies will grow at a compounded annual growth rate of 35 percent over the next five years. SD-WAN solutions comprise software and networking hardware technologies that promise to help enterprises adapt their WANs to the new world of Cloud services. The new report forecasts the sales of SD-WAN software to grow at almost double the rate of hardware.

"The SD-WAN software components are the key differentiators of vendors' offerings, and we expect controller and virtualized network functions software revenue to account for the large majority of the market size," said Shin Umeda, Vice President at Dell'Oro Group. "Over time, software innovation will drive the SD-WAN market while hardware will increasingly be commoditized," added Umeda.

Dell'Oro Group's Advanced Research: SD-WAN Report forecast is based on a bottoms-up methodology and includes details of the hardware and software components required for full SD-WAN implementation separated into enterprise and telecom market segments.

This new advanced research report also forecasts the SD-WAN market by the type of customer deployments.

Sales of SD-WAN solutions to Enterprises will account for the largest portion of the market over the next five years.
Service Provider SD-WAN deployments for the purposes of managed services will grow at an average annual rate over 40 percent over the next five years.

About the Report
Dell'Oro Group's Advanced Research: SD-WAN Report offers an overview of the SD-WAN industry with a 5-year forecast on the worldwide SD-WAN market and a discussion on the participating suppliers. To purchase this report, please contact Daisy Kwok at +1.650.622.9400 x227 or email [email protected].

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT 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 www.delloro.com.

SOURCE Dell'Oro Group