Key Findings • The SD-WAN market has reached mainstream adoption. Enterprises and service providers see SD-WAN as the edge networking platform of the future. • Futuriom expects the SD-WAN tools and software market to grow at a CAGR of 33% to $2.1 billion in 2020, $2.75B in 2021,and $3.5B by 2022. • Futuriom is increasing revenue forecast by 130% over last year’s forecast for the year 2021. Based on bottom-up data collection from vendor sources. • The top drivers of SD-WAN adoption are network security and streamlined management via cloud software and orchestration. • Of the 40+ SD-WAN software and tools vendors, the vendors leading in revenue traction, according to Futuriom end-user surveys, are Aryaka Networks, VMware/Velocloud, Silver Peak Systems, and Cisco/Viptela. • Cisco’s revenue reporting metrics are opaque, and it is difficult to break out SD-WAN revenue from other reporting segments such as routers. • Additional vendors distinguishing themselves in the “Top Ten” of 40+ SD- WAN software and tools vendors include Cato Networks, CloudGenix, Cradlepoint, Fatpipe Networks, Nuage Networks, and Versa Networks. • M&A activity is likely to pick up. Aryaka, Cato Networks, CloudGenix, FatPipe, and Versa Networks are strong candidates for M&A or IPO. • Companies included in the Report. Aryaka Networks, Cisco Systems, Cato Networks, Citrix Systems, CloudGenix, Fatpipe Networks, Fortinet, Juniper Networks, Nuage Networks (Nokia), Silver Peak, Versa Networks, VMware. 2019 SD-WAN Growth Outlook Breaking down the virtualized wide-area networking (WAN) market Premium Technology Research 2019 Featuring:
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Key Findings • The SD-WAN market has reached mainstream adoption. Enterprises and
service providers see SD-WAN as the edge networking platform of the future.• Futuriom expects the SD-WAN tools and software market to grow at a CAGR of
33% to $2.1 billion in 2020, $2.75B in 2021,and $3.5B by 2022.• Futuriom is increasing revenue forecast by 130% over last year’s forecast for
the year 2021. Based on bottom-up data collection from vendor sources.• The top drivers of SD-WAN adoption are network security and streamlined
management via cloud software and orchestration.• Of the 40+ SD-WAN software and tools vendors, the vendors leading in
revenue traction, according to Futuriom end-user surveys, are AryakaNetworks, VMware/Velocloud, Silver Peak Systems, and Cisco/Viptela.
• Cisco’s revenue reporting metrics are opaque, and it is difficult to break outSD-WAN revenue from other reporting segments such as routers.
• Additional vendors distinguishing themselves in the “Top Ten” of 40+ SD- WAN software and tools vendors include Cato Networks, CloudGenix,Cradlepoint, Fatpipe Networks, Nuage Networks, and Versa Networks.
• M&A activity is likely to pick up. Aryaka, Cato Networks, CloudGenix, FatPipe,and Versa Networks are strong candidates for M&A or IPO.
• Companies included in the Report. Aryaka Networks, Cisco Systems, CatoNetworks, Citrix Systems, CloudGenix, Fatpipe Networks, Fortinet, JuniperNetworks, Nuage Networks (Nokia), Silver Peak, Versa Networks, VMware.
2019 SD-WAN Growth Outlook Breaking down the virtualized wide-area networking (WAN) market
Premium Technology Research 2019
Featuring:
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Table of Contents
Top Drivers for SD-WAN Demand 6
Ø Security and Security Services 7
Ø Support for Cloud and Multi-cloud Connectivity 8
Ø Ease of Use: Router and Management Fatigue 8
Ø Reduced Opex and Capex 9
SD-WAN Use Cases and Features 11
SD-WAN Architectures & Strategies 16
Ø Key Differentiators in the SD-WAN Market 17
Ø SD-WAN Players Strength and Focus 20
Ø SD-WAN Strategies of Networking Incumbents 21 Ø Leading SD-WAN Startups 25 Ø Other SD-WAN Players to Watch 28
Ø Key Questions to Ask About SD-WAN Features 30
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SD-WAN Growth Forecast
Conclusion
SD-WAN Leader Profile 39
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Intro: SD-WAN Accelerates in 2019
It’s been an interesting year for software-defined wide-area networking (SD-WAN) so
far, with business activity increasing and the market accepting and deploying the
technology to manage the operating costs (opex) and capital expense (capex) of
deploying new bandwidth, whether it’s used to connect global branch offices or
datacenters.
Futuriom has been closely following this market for the past six years, including
correctly predicting it would be a fertile area for delivering revenue growth in
enterprise networking. Since our SD-WAN Growth Report Report last year, Futuriom
has conducted dozens of end-user interviews, surveyed the pattern of activity among
SD-WAN vendors, and conducted surveys with leading service providers and
customers. This year’s report presents the trends we see in the market, based on end-
market primary research.
What we’ve found is that enterprises are now educated about SD-WAN and no longer
see it as an early, experimental market. The market is maturing, and buyers are
interested in the multiple benefits of SD-WAN, including improving and managing
broadband Internet, reducing network costs for both connectivity and opex, and
improved management and automation. Service providers are aware of this trend and
are scrambling to put together managed services offerings, as their MPLS offerings
will clearly be replaced by SD-WAN services in the long term.
What we’ve found, in general, is that SD-WAN fits the unique characteristics of
enterprises looking to buy connectivity, network management, and applications from
the cloud. There are many reasons for this. The business world has been conditioned
to buy IT services, on-demand, from the cloud. Now enterprises want to buy WAN from
the cloud – rather than have it controlled by service providers or hardware vendors
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seeking customer lock-in with proprietary equipment on expensive private lines. At
the same time, gains in Internet availability and bandwidth optimization technology,
such as WAN optimization, de-duplication, load-balancing, and link balancing, have
become more sophisticated, enabling enterprises to leverage Internet broadband for
business applications. This is driving a deeper look at SD-WAN, which has the
potential to lower both operating costs (opex) and capital expense (capex) of
managing enterprise WAN connections.
All of this has made SD-WAN, or cloud-delivered WAN, a dominant growth area for
enterprise communications services. Enterprises will buy SD-WAN to reduce the
complexity in configuring branch-office devices, routing schemes, and network
addresses. With SD-WAN, much of these functions can be abstracted into the cloud
and managed by the service provider or an enterprise manager using a cloud
interface, rather than using proprietary networking equipment.
Our conclusion is that growth of the SD-WAN market is likely to gather momentum in
2019-2020, with revenue cracking solidly into the billions of dollars and the
technology evolving to a point at which it’s accepted in the marketplace. The SD-WAN
market is the most successful representation of software-defined networking,
offering real value and return on investment (ROI) to enterprises looking to reduce the
escalating costs of their WANs.
As is common with hot markets, many players are rushing to plant their flags. The SD-
WAN market, which by some measures has more than 40 vendors assigned to it, is
becoming ever cluttered with competitors and their noisy marketing messages. That’s
why in this report we try to lay out the land and report the largest players and what
they are doing.
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Top Drivers for SD-WAN Demand In our discussion with end users, common themes emerge in the search for an SD-
WAN solution. Both enterprises and service providers are looking for a more flexible
model of delivering connectivity solutions using the cloud software model.
While the shift in enterprise bandwidth to cloud access is one of the overarching
drivers toward a new SD-WAN architecture, it is also reinforced by many broader
trends in IT. The chart below, from a recent Futuriom Service Provider SD-WAN survey,
recaps strong drivers expressed by service providers in their discussions with
enterprise customers about SD-WAN technology.
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As you can see, the top perceived drivers are better security (31.7%), support for
cloud and edge services (26%), and ease of use/management (21%). What’s
impressive in our reading of survey data as well as interviews with end users is the
breadth of problems they hope to solve with SD-WAN. The SD-WAN platform is seen
as a networking management tool that can improve security, provide more visibility
into applications and network usage, improve bandwidth while reducing cost, and
ease network management headaches.
Below are some of the most common areas of benefit seen in SD-WAN platforms. Security and Security Services
The data from a recent Futuriom Service Provider SD-WAN survey shows that 31.7%
of service providers cited security as a strong driver for customers to buy SD-WAN
technology, which reflects a common theme in the market: SD-WAN platforms are
seen as a crucial tool in delivering next-generation network security services.
The reason for this is multi-fold. First of all, security concerns are on the rise across IT,
as the number of breaches and risks increase. Second of all, IT professionals that we
have surveyed see managing multiple security tools as problematic, costly, and time
consuming. So platforms that can be used to consolidate or integrate security add
value to the enterprise.
SD-WAN platforms can streamline security management by integrating cloud security
tools as well as network security tools into the same framework. Many of the SD-WAN
vendors, including Cato Networks and Versa Networks, have focused on this story by
building their own security functions directly into the platform. But many other SD-
WAN vendors are developing a security strategy based on best-of-breed applications,
partnering with leading security firms such as Palo Alto Networks and Zscaler to
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integrate third-party security technology into the SD-WAN offering. Over the past
year, we have seen security grow in importance as a component of SD-WAN.
Support for Cloud and Multi-cloud Connectivity The acceleration of cloud services and software-as-a-service model (SaaS), in which an
enterprise accesses many applications using the Internet in the cloud, rather than
applications residing in a private datacenter, has changed traffic patterns in enterprise
networks. This is a fundamental change for the way that networks were built over the
last several decades, when enterprises were focusing on building internal, private
connections between datacenters and branches.
Cloud platforms are driving business models and IT operations toward a global,
public-Internet orientation. Forecasts show the use of IT services in the cloud is
steadily growing and expected to continue over the next 10 years. Amazon’s recent
quarterly results released showed Amazon Web Services (AWS) growing 43% year-
over-year growth.
Overall, cloud computing is projected to increase from $67 billion in 2015 to $162
billion in 2020, with compound annual growth rate (CAGR) of 19%, according to a
cross-section of industry research.
Moving forward, Futuriom expects SD-WAN platforms to become a vehicle for virtual
networking across multiple clouds, known as multicloud. Because SD-WAN can be
used to provision and manage virtual overlays, it makes sense that it can drive
multicloud connectivity.
Ease of Use: Router and Management Fatigue CIOs and IT managers are seeking more flexibility in connecting branches with a
software-driven model that can get branches and offices up and running quickly,
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without the need for complicated network configurations. Networks based on
complex proprietary routing schemes are falling out of favor. SD-WAN technology
offers the capability to drive branch equipment configurations from the cloud,
speeding up orchestration of branch office equipment to connect branches more
quickly and at lower cost.
End-users regularly cite the need to streamline the configuration and control of
branch connectivity devices – otherwise known as customer premises equipment
(CPE) – including eliminating or replacing routers altogether with more standardized
SD-WAN devices, which can be based on commercial off-the-shelf hardware.
In a series of interviews Futuriom conducted with end users, we found that the hidden
cost of managing routers was a motivation to switch to an SD-WAN platform. One
user of Silver Peak's SD-WAN product, Tennessee Oncology Chief Information Officer
David Stewart, said of the healthcare provider’s move to SD-WAN technology:
“We initially started discussions with Cisco using a traditional router
architecture and the initial estimates were astronomical — the Silver Peak
platform was probably one-third of the cost. And we no longer need somebody
familiar with BGP (Border Gateway Protocol) routing and all the complexities of
managing routers.”
In addition, cloud management is often cited by service providers as being in high
demand for enterprise WAN services, as reflected in our survey data.
Reduced Opex and Capex
Of course, reducing network costs, both for opex and capex, is important. In Futuriom’s
survey work and interviews, cost reduction is often second to security, cloud
connectivity, performance, and management concerns, but it’s still important.
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As connectivity demand strains network resources, the need for more cost effective
transport will not subside. Data shows more enterprise demand for broadband and
networking connectivity circuits for 100 Mbps and above, and gigabit Ethernet coming
online as well. As cloud services proliferate, the thirst for bandwidth is accelerating,
and IT managers need a break in cost. Using expensive private-line and MPLS circuits
is no longer a solution – managers are looking for ways to optimize and secure less
expensive Internet broadband circuits. SD-WAN technologies offer a way to do that
with demonstrable return on investment (ROI).
The end users that Futuriom speaks with regularly cite the need to reduce the costs of
network connectivity, including expensive private lines. But they are also focused on
operations, and they see SD-WAN as streamlining the cost of operating the network.
The expansion of options, including more reliable broadband and emerging mobile
options for enterprise connectivity, means that SD-WAN can be used to manage,
combine, and optimize multiple network links to boost bandwidth and reduce overall
costs.
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SD-WAN Use Cases and Features
Futuriom’s ongoing interviews with dozens of equipment providers and WAN users
reveals the following goals in connecting the WAN in these new cloud environments:
• Optimize and accelerate WAN traffic to the cloud
• Improve overall network security
• Reduce costs related to WAN bandwidth
• Leverage multiple access technologies such as fiber, DSL, and wireless
• Increased flexibility in CPE so that management can be outsourced or updated
with software-only upgrades
• Improve capability to purchase, provision, and manage network services via the
cloud, using software
The technology industry likes to discuss “uses cases” of a technology, but this can also
be thought of as a function of a feature. Customers and end users are looking to solve
problems, so a new technology will be deployed if it solves these problems.
Below, Futuriom summarizes the most popular use cases and features that we hear
about from end users. These are the main reasons that SD-WAN will be purchased or
implemented.
Router replacement and Open CPE: One of the higher costs of WAN frequently cited
by enterprise customers is the opex of managing proprietary hardware and CPE,
including branch-office routers. For example, if you have a load of Cisco gear, it might
require having a Cisco Certified Internetwork Engineer (CCIE). Not only is this
complicated, but it can also introduce errors and complexities in building and
managing the network as the proprietary gear is configured.
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One of the key differentiating points of SD-WAN vendors is to simplify the
deployment and management of CPE – especially if you are a retail company that has
to manage hundreds or thousands of branches. For example, many SD-WAN hardware
and software implementations can be deployed with templates and remote
configuration. By running SD-WAN on COTS, the organization can standardize on
cheaper, standardized hardware platforms that are managed from the cloud. Another
approach is to implement a light or virtual client than can be installed on existing
routers, firewalls, or other network edge devices.
Regardless of the approach, the key is that the SD-WAN platform can be managed
using a unified approach from the cloud, rather than requiring manual, on-site
management.
Security and Cloud VPN for Branch Office (including firewall replacement): One of
the allures of SD-WAN technology is that it can be used to deploy a virtual private
network (VPN) as a software overlay using end-to-end encryption. This helps meet
security requirements for businesses that may want to connect branch offices or retail
outlets but also have high security requirements. It also means that value-added
security services such as stronger encryption, malware detection, and intrusion
detection services (IDS) can be offered by the SD-WAN providers. Security is
becoming an important checklist item for SD-WAN. Futuriom sees many SD-WAN
providers racing to adopt as many security features as possible, whether it is through
native development or partnerships.
WAN Optimization: One of the goals of SD-WAN is to improve the performance of
applications on the network. WAN optimization, once a discrete function delivered
with a hardware or software appliances, is being integrated into SD-WAN
functionality. Many SD-WAN technologies include WAN optimization functionality and
we expect this to be a checklist item in SD-WAN deployments. A similar trend
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originated in the applications delivery controller (ADC) market, in which ADCs
optimized the access and performance of applications on a network. That is why many
of the WAN optimization (WAN-Opt) vendors, such as Silver Peak, FatPipe, and
Riverbed, have adopted SD-WAN architectures and built SD-WAN products.
Application Performance Enhancement: Cloud WAN solutions can be built that
optimize access to cloud applications by monitoring traffic and routing higher-priority
business applications ahead of leisure services such as Netflix and YouTube.
Additionally, many WAN services can peer directly with cloud services to offer a “fast
lane” to the business applications. These techniques can be used to "offload"
enterprise WAN backhaul, routing cloud traffic directly to the source using a
combination of broadband technologies. This will also have the effect of challenging
the traditional ADC model of providing these services as part of a discrete hardware
device. In addition, some SD-WAN vendors are working with cloud vendors to set up
specialized cloud gateways and POPs in cloud datacenters to provide more direct
access to cloud applications.
Broadband Link Balancing: One of the key features of many SD-WAN services is the
ability to aggregate and load-balance broadband links, such as combining mobile
broadband, fiber, DSL, and/or cable. As broadband technologies proliferate and point-
to-point 5G becomes a reality, this will help to maximize resources and build a more
mission-critical WAN. In addition, SD-WAN solutions can be used to optimize cloud
connectivity using mobile connections. Examples might include the Internet of Things
(IoT), whereby a retail kiosk or a commercial truck is connected to the corporate WAN
using mobile connectivity, whether that be cellular or through other flavors of WAN
(such as WiFi or LoRa). In these cases, having SD-WAN features such as WAN
optimization and central SD-WAN software routing can optimize connectivity to save
money on cellular or WAN connection costs. VeloCloud (owned by VMware) was one
of the early innovators to push these features.
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The diagram below, provided by Silver Peak, shows how an SD-WAN architecture can
adapt to shifting demand from private networks to cloud and SaaS apps by redirecting
network traffic to where the applications are, in real time.
Source: Silver Peak
A similar model, provided by VMware’s VeloCloud division, can be seen below.
Source: VMware
SD-WAN architectures can vary widely, but most solutions focus on the same goals:
Improving the use of broadband Internet and balancing connectivity with MPLS
private lines while at the same time optimizing access to cloud applications.
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Network-as-a-service (NaaS) and Network Functions Virtualization (NFV): Many
enterprises don't even want to build or manage the WAN, but they also want
something better than plain-vanilla Internet. In this case, they can go to NaaS
providers who can provide software that aggregates existing broadband services into
an SD-WAN that is managed by the service provider. Customers can provision and
operate the WAN using a provisioning and management system provided with a web
interface, and they avoid the costly process of managing and configuring hardware,
because the hardware is provided by the service provider and managed using SD-WAN
software.
SD-WAN is increasingly being seen as a way to deliver either a cloud networking
service or a platform for delivering NFV applications by service providers.
Aryaka and Cato Networks are the notable SD-WAN NaaS providers in the market,
operating their own “middle mile” network using network POPs (in Aryaka’s case) and
IP transit (in Cato’s case). VeloCloud has a unique architecture with cloud gateways
that enables it to operate as a NaaS as well as an NFV platform. In addition, some SD-
WAN vendors such as Versa Networks are focusing on building a fully integrated NFV
platform with SD-WAN, to target service providers looking to launch SD-WAN
managed services from the cloud.
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SD-WAN Architectures & Strategies
There are many approaches to building SD-WAN. According to Futuriom’s research,
there are at least 40 providers of SD-WAN tools, platforms, and services. For the
purposes of this report, we have focused on the technology vendors, platforms, and
services that we consider leaders in the market
The diagram below shows how SD-WAN technology can be used to build a virtual
overlay that connects the edge domain, data-center domain, private MPLS networks,
and cloud.
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Key Differentiators in the SD-WAN Market
In a market with more than 40+ providers, Futuriom tracks approximately 16 SD-WAN
companies with sufficient funding, technology, and market share.
There are many architectural differences between the SD-WAN players, all of which
must be assessed by the buyers. Some SD-WAN solutions will be suited to end
markets such as retail or small-medium business (SMB), which are more focused on
easing the pain of managing the branch offices and virtual private networks (VPNs),
while others are building more comprehensive solutions that can facilitate routing
and quality of service (QoS) from end-to-end, whether it’s crossing a datacenter or
multiple clouds.
Below are some of the architectural debates that are frequently discussed in assessing
solutions.
Thick Client vs. Thin Client: The competition over the client for the SD-WAN network
is a common one. One can view this as “thick client or “thin client,” meaning whether
functionality is delivered primarily from the cloud or a POP or loaded into the
customer CPE.
The tradeoff in thick vs. thin comes down to the cost and power of the CPE. Thick
clients demand more powerful processing (more expense) but will inherently deliver
more performance for applications such as security and NFV at the branch.
As an example, startup Versa Networks is a proponent of a thick branch, by pushing
integrated security software that runs on a more powerful CPE. On the other side of
the spectrum, Silver Peak and VeloCloud advocate a thinner branch and adhere to the
strategy of providing security services with third-party partners such as Palo Alto
Networks and Zscaler, allowing the customer to choose the security platform
delivered from the cloud or integrated with an existing firewall appliance. Advocating
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perhaps the thinnest client of all is Cato Networks, whose client is primarily a software
agent than can run on COTS hardware and deliver most functionality from the cloud.
POP, no POP, or Cloud? Does the SD-WAN vendor own its own network or points of
presence (POPs)? These strategies also vary. SD-WAN vendors such as Aryaka and Cato
are really service providers, offering their solution primarily as cloud services running
over existing network transport. Cato’s model is perhaps the most extreme, as founder
Shlomo Kramer recently told Futuriom is that he doesn’t believe the model of
deploying a technology platform with a traditional managed service provider will
work, because the customer ultimately wants the flexibility of managing their network
from the cloud.
Then there are vendors trying to provide the best of both worlds. VMware’s VeloCloud
offers an SD-WAN hardware and software platform, but it also maintains its own cloud
gateways, which are access gateways placed in cloud hosting POPs to deliver software
and services closer to regional cloud nodes.
To complicate things, 2019 also saw momentum behind cloud SD-WAN gateways, in
which major cloud providers such as Microsoft’s Azure, Amazon Web Services (AWS),
and Google’s Cloud Platform (GCP) are building gateways integrated with the various
SD-WAN providers. We expect this to continue to be a trend, with the cloud providers
providing more integrated direct access points in partnership with SD-WAN vendors.
WiFi or Not? Some vendors are coming at the SD-WAN problem from the cloud and the
overlay network (Cato and VMware), whereas others are coming from a branch-office
routing and WiFi heritage, such as Cisco (Meraki) and Cradlepoint. Ultimately, it makes
sense that SD-WAN integrates WiFi and cellular wireless connectivity with the SD-
WAN management platforms, because these are just other forms of connectivity.
Cisco’s progress in telling this story – i.e. how it will integrate Meraki and SD-WAN – is
somewhat vague. Others, such as Cradlepoint, have a solid wireless story but lack
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some of the depth in the core SD-WAN cloud functionality that enables a full suite of
features that can also manage application performance and integration on wired
networks. Over time, Futuriom expects all of these areas to converge – and the
winners will be the SD-WAN vendors and providers that can successfully integrate and
manage all branch networking devices into one SD-WAN platform. This will also be a
driver of merger activity, as the larger networking vendors look to fuse WiFi
management and SD-WAN manage. In the future, it makes more sense for enterprises
to be able to manage their wireless and wireline management platforms from one
platform.
Comprehensive Routing and Multi-cloud: A key differentiator in the market will be
the routing functionality offered by the SD-WAN vendor, specifically on an open CPE
or in the cloud itself. This includes support of common routing protocols such as BGP
and OSPF. Some router incumbents, specifically Cisco, are reluctant to offer routing
functionality outside of their own hardware platform. Others, such as Nuage Networks
(Nokia), are aggressively pushing sophisticated routing functionality in a generic CPE
as well as the cloud. Futuriom believes a key differentiator will be how SD-WAN
evolves into a multi-cloud routing platform. The vendors that take this approach will
be successful by providing secure end-to-end connectivity from the branch to the
cloud.
The chart below shows the focus and specialization of leading SD-WAN vendors
Futuriom follows.
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SD-WAN Strategies of Networking Incumbents
The large networking vendors are important to watch in the SD-WAN space, as their
networking equipment franchise comes under assault by the more software-centric
startups. Many of the incumbents have seen the strategic value of SD-WAN and have
made significant investments in the space. This has included a wide range of M&A,
internal development and PowerPoint.
For that reason, it’s important to review what the larger vendors are doing with their
SD-WAN strategy.
Cisco (Viptela, Meraki, ACI, Umbrella): Cisco has unleashed a barrage of SDN, SD-
WAN, and cloud security stories. The underlying motivation is that Cisco wants to
transition from being primarily a hardware provider to a provider of subscription
software services with annual recurring revenue (ARR). The challenge is that Cisco has
so many pieces, it’s hard to track exactly how they will work together – and from the
customer perspective, this has the potential to be too complex and expensive. For
example, do you really want to use Cisco Meraki to manage wireless connectivity, ACI
to manage routing, and Viptela as SD-WAN software? In 2017, Cisco purchased Viptela
for $610 million, but enterprise end users we speak to seem relatively confused by
whether Viptela will be a separate platform or fully integrated into Cisco’s router
portfolio. Currently, what we’re hearing in the channel is that Cisco is aggressively
pushing its own hardware. In addition, the general feedback we have gotten from the
end users is that Cisco’s solution risks being too expensive and complex with many
moving parts. Insurgent startups such as Silver Peak and VMware VeloCloud have
driven much of their success with a “simpler branch” strategy that can replace routers
with a lower-cost device and SD-WAN management platform, and this is resonating
with end users.
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Juniper Networks: Juniper has positioned Contrail orchestration product as an SD-
WAN tool, but Juniper has been slow to market to develop a more comprehensive SD-
WAN strategy. In addition, in our discussion with Juniper executives, it’s not clear that
Juniper sees SD-WAN as a strategic platform, and this could be a huge mistake. Part of
this, in our opinion, has been complicated by Juniper’s organizational structure that
splits the marketing of SD-WAN in service provider and enterprise divisions, which
have conflicting agendas. Recently, Juniper made a move to put Contrail management
in the cloud and use it to manage all devices, whether it’s routers or its own open
cloud CPE devices. This development is in the tradition of Juniper focusing on
developing its own high-performance hardware, so it’s a plus that the company has
both its own routers and COTS CPE to use as SD-WAN devices. Juniper also has
significant security resources such as its vSRX (virtual firewall), which can be deployed
using Contrail. Juniper is in a good position with many of the key components of a
wide-ranging SD-WAN story, but our sense is the company is not fully committed to
the market and the company will need to double down on marketing – or it might have
to make another acquisition to be seen as a true leader in the SD-WAN market.