IHS-Markit Analysis, by Cliff Grossner, PhD, IHS Markit Sr Research Director
SD-WAN (appliance + control and management software) revenue reached $221M in 2Q18, up 25% QoQ and 2x over 2Q17. VMware led the SD-WAN market with 18% share of 2Q18 revenue, Aryaka was in second place with 15% revenue share, and Cisco enters the top 3 with 12%, according to the DC Network Equipment market tracker early edition from IHS Markit.
“With SD-WAN deals becoming more competitive within the North American market, the race to expand into other regions is now well underway. VNF certifications with EMEA and Asia Pacific based service providers are now in full swing where SD-WAN vendors are in the final stages of VNF certifications with BT, Telefonica, Vodafone and China Mobile” said Cliff Grossner, senior research director and advisor for cloud and data center at IHS Markit, a world leader in critical information, analytics and solutions.
“Countries top of the agenda for hiring and office expansions for SD-WAN vendors are the United Kingdom, Germany, Singapore, Japan and China where SD-WAN vendors indicate there is heavy SaaS and IaaS traffic between multiple on- and off-premises DCs.” said Grossner.
More Data Center Network Market Highlights
· 2Q18 ADC revenue declined 2% from 1Q18 to $443M and declined 2% over 2Q17
· Virtual ADC appliances stood at 33% of 2Q18 ADC revenue
· F5 garnered 47% ADC market share in 2Q18 with revenue up 0.4% QoQ. Citrix had the #2 spot with 28% of revenue, and A10 (8%) rounded out the top 3 market share spots.
Data Center Network Equipment Report Synopsis
The IHS Markit Data Center Network Equipment market tracker is part of the Data Center Networks Intelligence Service and provides quarterly worldwide and regional market size, vendor market share, forecasts through 2021, analysis and trends for (1) data center Ethernet switches by category [purpose built, bare metal, blade and general purpose], port speed [1/10/25/40/50/100/200/400GE] and market segment [enterprise, telco and cloud service provider], (2) application delivery controllers by category [hardware-based appliance, virtual appliance], and (3) software-defined WAN (SD-WAN) [appliances and control and management software]. Vendors tracked include A10, ALE, Arista, Array Networks, Aryaka, Barracuda, Cisco, Citrix, CloudGenix, CradlePoint, Dell, F5, FatPipe, HPE, Huawei, Hughes, InfoVista, Juniper, KEMP, Nokia (Nuage), Radware, Riverbed, Silver Peak, Talari, TELoIP, VMware, ZTE and others.
In a different report, Prescient & Strategic (P & S) Intelligence says:
The global software defined wide area network (SD-WAN market) was valued at $676.9 million in 2017 and is forecast to witness a CAGR of 54.1% during 2018-2023 and will reach $9,691.0 million by 2023. The demand for cost effective WAN management solutions, increasing adoption of cloud technologies, need for simplified network architecture, end-to-end network security and visibility are driving the market globally.
The SD-WAN market is classified into solution and service. The solution category held a larger revenue share in the market accounting for nearly 78% in 2017. During the forecast period, the market for SD-WAN service is expected to witness higher growth, as the need for traffic management to optimize bandwidth and cost reduction by replacement of dedicated WAN network with broadband network without compromising on security, increases.
Based on appliances, the SD-WAN market is categorized into virtual, physical and hybrid appliances. Virtual appliance accounted for largest revenue share in the market in 2017. During the forecast period, it will continue to contribute largest revenue share owing to the fact that it reduces the cost incurred in installation and offers configuration and maintenance of complex stack of software virtually.
The Asia-Pacific (APAC) SD-WAN market is expected to witness a CAGR of 57.9% during the forecast period. Since the internet speed and internet quality have significantly improved in the region, IT departments are looking for cost effective, secure, performance related solutions to reduce their dependency on multi-protocol label switching (MPLS). Organizations in the IT and telecom industry in the region are focusing on agile, secure, and end-to-end visible WAN management solution, which will support the market growth in future.
Some of the key players operating in the market are Cisco Systems, Inc, Citrix Systems, Inc, Silver Peak Systems Inc, CloudGenix Inc, Ecessa Corporation, Viptela Inc, Riverbed Technology, Inc, Mushroom Networks, Inc, VeloCloud networks Inc, Glue Networks Inc, Elfiq Inc.
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P & S Intelligence, a brand of P & S Market Research, is a provider of market research and consulting services catering to the market information needs of burgeoning industries across the world. Providing the plinth of market intelligence, P & S as an enterprising research and consulting company, believes in providing thorough landscape analyses on the ever-changing market scenario, to empower companies to make informed decisions and base their business strategies with astuteness.