Menu
​Strong growth for software-defined as enterprise optimises cloud strategies

​Strong growth for software-defined as enterprise optimises cloud strategies

“The emergence of SD-WAN is a relatively recent market development, preceded by the existence of hybrid WAN architectures."

Software-defined networking has already arrived in the data centre, providing the agility and responsiveness that datacenter networks need to meet the demands of cloud computing.

Now the focus is shifting toward wide area networks (WANs), which can also be optimised to meet the requirements of cloud applications and services.

In its first forecast of the software-defined wide area network (SD-WAN) market, IDC estimates that worldwide SD-WAN revenues will exceed $US6 billion in 2020 with a compound annual growth rate (CAGR) of more than 90 percent over the 2015-2020 forecast period.

“The emergence of SD-WAN is a relatively recent market development, preceded by the existence of hybrid WAN architectures,” says Rohit Mehra, Vice President of Network Infrastructure, IDC.

“SD-WANs leverage these hybrid WANs, but incorporate a centralised, application-based policy controller, analytics for application and network visibility, a software overlay that abstracts underlying networks, and an optional SD-WAN forwarder that together provides intelligent path selection across WAN links.”

Mehra says the benefits of SD-WAN include cost-effective delivery of business applications, meeting the evolving operational requirements of the modern branch/remote site, optimising software-as-a-service (SaaS) and cloud-based services such as UC&C, and improving branch-IT efficiency through automation.

“As public and private cloud use continues to grow, WAN performance becomes critical to latency-sensitive and mission-critical workloads and inter-datacenter business continuity,” Mehra adds.

“Accordingly, as enterprises plan and implement comprehensive cloud strategies, WAN architectures need to be considered alongside, and in conjunction with, datacenter infrastructure.

“Moreover, as enterprises move business processes to the cloud, there is a greater need to fully integrate cloud-sourced services into WAN environments to ensure workload/application performance, availability, and security.”

Going forward, IDC believes that SD-WAN's value proposition - predicated on the growth of cloud computing, the need for simplified virtual private network (VPN) capabilities, and the business imperative of reducing MPLS costs - will be compelling for a growing number of enterprise customers seeking to provide cost-effective cloud-era networking to branch offices and remote sites.

As Mehra explains, this view is supported by recent US survey data that shows nearly half of enterprises planning to consider migration to SD-WAN over the next two years.

Accordingly, IDC forecasts that SD-WAN revenue will start to ramp strongly in 2016 and 2017 across a range of vertical markets.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags public cloudIDCCloudprivate cloudData Centresoftware-defined networking

Featured

Slideshows

Reseller News launches inaugural Hall of Fame lunch

Reseller News launches inaugural Hall of Fame lunch

Reseller News welcomed 2015 and 2016 inductees - Darryl Swann, Dave Rosenberg, Gary Bigwood, Keith Watson, Mike Hill and Scott Green - to the inaugural Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed how the channel can collectively work together to benefit New Zealand, the Kiwi skills shortage and the future of the industry. Photos by Maria Stefina.

Reseller News launches inaugural Hall of Fame lunch
Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Show Comments