Atlanta, GA – A recent analysis performed by leading SD-WAN provider Cloudbrij has revealed that SD-WAN technology is one of the most quickly-growing areas of the IT and networking world.
Using data from past projects and current contracts alongside information gathered from large researchers such as the IDC and IHS, Cloudbrij analysts have concluded that demand for SD-WAN architecture is surpassing all past predictions, and outgrowing even the most optimistic market predictions.
Much of this growth can be attributed to the modernization of the IT market. As new and innovative technologies like SD-WAN continue to become more commonplace, businesses are realizing the benefits that can be gained by a software-defined network, and are more likely to switch from traditional, phone-line based architecture to a more advanced connectivity solution.
These dynamic digital infrastructures can make use of both, the power of traditional “hard-line” rented bandwidth, as well as multiple “bundled” SD-WAN connections. This allows increased flexibility and scalability for SD-WAN installations – and an overall increase in network performance.
SD-WAN Is On Pace To Hit A $6 Billion Market Cap By 2020
Cloudbrij research has confirmed the initial predictions of the IDC – SD-WAN will easily surpass a $6 billion market cap by 2020, experiencing a Compound Average Growth Rate (CAGR) of over 90%.
This growth rate is nearly unparalleled in the IT industry. For comparison, the much-touted cloud computing industry has CAGR of only 19%. The cloud industry is much larger and has more market penetration, so a lower growth rate isn’t shocking – but a CAGR of 90% is almost unheard of in just about any market.
However, given the numerous benefits that SD-WAN providers offer compared to traditionally-defined WAN applications, it’s only natural that companies would be very interested in replacing their traditional WAN networks.
SD-WAN is growing at a rapid pace for a reason – it’s truly a “silver bullet” for the ever-expanding connectivity needs of the modern business.
By combining low-cost consumer networks with rented MPLS lines, SD-WAN networking can offer a “best-of-both-worlds” solution to companies who need powerful, high QoS (Quality of Service) connections, but are looking to save money by renting less bandwidth on expensive MPLS lines and other traditional WAN technologies.
This is especially true among small-to-medium sized businesses who could not afford MPLS lines. The performance benefits of SD-WAN networking can allow them to compete with larger companies that use dedicated MPLS lines to connect to both off-site locations and cloud infrastructure.
SD-WAN Is An Affordable Alternative To MPLS Networks
SD-WAN is succeeding because it’s dramatically undercutting the competition. MPLS lines and other expensive “rented lines” used to be the only way for businesses to maintain a high-quality connection to their datacenters, remote branches, and other offices. Businesses would rent a set amount of guaranteed bandwidth from a high-quality network line, and use that line to connect their networks – creating a “Wide Area Network” (WAN).
However, renting MPLS lines is expensive. Large companies almost never make use of all of their bandwidth – and smaller companies can often be priced out of the market altogether.
This is the secret to the success of SD-WAN technology. SD-WAN technology uses smart routing software to maximize the efficiency of multiple bundled network connections – business broadband can be integrated with a rented MPLS line and other networks.
Smart packet switching technology then allows companies to route traffic through the appropriate connections. Low-priority traffic like web browsing is sent through traditional broadband, while high-QoS traffic like video conferencing connections and data center connectivity are routed through MPLS lines.
This allows companies to save money by renting smaller MPLS lines – or even eliminating them altogether, instead using a bundle of lower-bandwidth broadband connections from different ISPs. This technology also increases network redundancy. Multiple broadband lines can be grouped together from different ISPs, so even in case of network maintenance or an emergency, network connectivity can be maintained.
Most SD-WAN Installations Are Being Used In A “Hybrid Architecture” Configuration
Currently, most SD-WAN installations are not being used as a total replacement for MPLS lines – as mentioned above. Instead, SD-WAN augments “rented line” MPLS service contracts, allowing businesses to save money by renting a smaller amount of bandwidth from MPLS service providers.
This “hybrid architecture” is currently the most popular way to implement SD-WAN, as it maximizes cost-efficiency, avoids breaking MPLS service contracts, and can dramatically improve network performance.
However, there is growing interest in “SD-WAN-only” architecture. As SD-WAN technology continues to improve, there is potential for SD-WAN networks that use multiple bundled broadband connections to match – or even exceed – the performance of MPLS rented lines.
Most analysts expect that standalone SD-WAN architecture will become much more common in 2017, especially among smaller business who wish to avoid renting a costly MPLS line. Smarter packet switching technology and increased redundancy will allow SD-WAN applications to match the performance of MPLS lines – without requiring an expensive, private line rental contract.
SD-WAN Represents The Future Of Wide-Area Networks
As the demand for constant cloud connectivity, remote database access, big data analytics, and other bandwidth-intensive services continues to grow, SD-WAN companies are in a truly unique position. As the need for bandwidth continues to rise, all businesses will begin to search for a cost-effective method of maximizing their bandwidth potential – while minimizing costs.
SD-WAN is the future of WAN technology – and companies are taking notice. Dozens of SD-WAN startups have been formed in the last year, and even telecom giants like Cisco are taking notice – acquiring startup Viptela for over $610M USD.
As the market grows, it will be very interesting indeed to observe the changing technology used for SD-WAN implementations, and see how it affects ISPs and MPLS service providers.
About Cloudbrij: Based in Atlanta, GA, Cloudbrij is an industry-leading SD-WAN provider, supplying powerful networking solutions to dozens of partners both worldwide and domestically. Providing turn-key SD-WAN solutions since the inception of this advanced technology, Cloudbrij is uniquely situated in the market, and provides expert consulting advice for resellers and installation partners alike.