IDC: Digital transformation and cloud usage pave the way for SD-WAN

Analysts at research company IDC say they believe that the imperative of digital transformation and the rise of cloud usage have set the stage for software-defined wide area network (SD-WAN).

IDC said in a report that worldwide SD-WAN infrastructure and services revenues would see a compound annual growth rate (CAGR) of 69.6 percent and reach $8.05 billion in 2021.

The report, entitled Worldwide SD-WAN Forecast, 2017–2021, stated that the most significant driver of SD-WAN growth over the next five years would be digital transformation (DX). According to IDC, enterprises are deploying third platform technologies, including cloud, big data and analytics, mobility and social business, to unlock new sources of innovation and creativity that enhance customer experience and improve financial performance.

DX generally increases network workloads and elevates the network’s end-to-end importance to business operations.

Another factor driving the growth of SD-WAN is the continued rise of public cloud-based software-as-a-service (SaaS) applications.

Telco Systems has identified the potential of managed SD-WAN services and has consequently launched NFVTime-Verge, a new service ready to open uCPE which runs optimized SD-WAN, Router and Firewall on COTS White-box.

Verge SD-WAN delivers a scalable, multitenant solution that provides secure and reliable virtual overlays used to connect users to applications, providing the flexibility to deploy any combination of MPLS, broadband and LTE transport services without compromising network or application performance.

NFVTime-Verge

“With impressive growth rates, demand for SD-WAN services is constantly on the rise,” said Raanan Tzemach, vice president of Product Management at Telco Systems. “Our solutions are tailored to the needs of telcos and managed service providers looking for freedom to pick and choose the VNF services they want to offer without the traditional constraints of any particular vCPE or SD-WAN platform.”

In a separate report published by IDC, the company predicts that revenues from SD-WAN services are expected to grow at an average pace of 92% per year in Europe, the Middle East and Africa, reaching $2.1 billion by 2021.

The report, entitled “The SD-WAN Opportunity in EMEA,” foresees rapidly growing demand for SD-WAN solutions and SD-WAN built on hybrid network architectures.

The research indicates that SD-WAN will play a key role in network evolution as organizations try to cope with the accelerating requirements resulting from digital transformation.

IDC analysts noted that the momentum behind SD-WAN was strong, with many startups, established vendors and service providers following the trend. They added that for end-user organizations the rationale for adoption was compelling and this would only increase as solutions matured and awareness and recognition of its benefits grew.

Additional resources

To learn more about the NFVTime-Verge service, click here

To download the NFVTime-Verge datasheet, click here

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