Single-Vendor SASE Revenue Climbs 55 Percent in 1Q 2023 as More Vendors Become a One-Stop Shop, According to Dell'Oro Group

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Jun 13, 2023, 08:00 ET

Zscaler Takes Number One Overall SASE Revenue Position from Cisco

REDWOOD CITY, Calif., June 13, 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 portion of the SASE market, where vendors offer both SD-WAN and SSE (security service edge) solutions, grew an impressive 55 percent year-over-year (Y/Y) in 1Q 2023. By doing so, single-vendor SASE overtook the multi-vendor SASE portion of the market, consisting of vendors that can only offer the SD-WAN or SSE component. The overall SASE market revenue rose by over 30 percent for the fifth consecutive quarter in 1Q 2023 and, by doing so, was not far off the $2 B mark.

"Even as enterprises have been more judicious in how they spend security budget, the robust growth of the SASE market is a testament to the strong commitment by enterprises and the value they bring to secure users' access to cloud-based applications from anywhere," said Mauricio Sanchez, Research Director at Dell'Oro Group. "The vendors that can offer both the SD-WAN and SSE components are setting themselves apart in an extremely competitive market," added Sanchez.

Additional highlights from the 1Q 2023 SASE and SD-WAN Quarterly Report:

For the first time since we started tracking SASE in 1Q 2019, there was a revenue position change in the number one spot, with Zscaler overtaking Cisco.
Palo Alto Networks overtook Broadcom (Symantec) for the number three overall SASE revenue position.
Check Point, HPE/Aruba, and Netskope became single-vendor SASE players.
Both SSE and SD-WAN revenue grew above 30 percent Y/Y.
Unified SASE solutions–defined as SASE solutions where SD-WAN and SSE have been tightly integrated into a single technology stack–eclipsed $200 M for the third consecutive quarter, representing over 140 percent growth.
Overall SASE revenue growth on a regional basis varied from 27 percent in North America to 49 percent in the Caribbean and Latin America.
The Access Router market revenue surged forward by over 15 percent Y/Y on improved hardware supply.

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