IHS-Markit: SD-WAN revenue reached $444M in 2017; Aryaka wins award

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by Cliff Grossner, PhD, Senior Research Director and Advisor at IHS-Markit

SD-WAN (appliance + control and management software) revenue reached $147M in 4Q17, with CY17 up 3.9x over CY16. VeloCloud (acquired by VMware) led the SD-WAN market with 19% share of 4Q17 revenue, Aryaka was in second place with 17% revenue share, and Silver Peak rounded out the top 3 with 12%, according to the DC Network Equipment market tracker early edition from IHS Markit.
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“Reviewing recent wins, we can see a market that is maturing with a transition from early market adopters to mainstream buyers. Other signs of maturation include expansions at existing clients and incremental product offerings such as security and WAN optimization on top of basic WAN transport virtualization,” said Cliff Grossner, Ph.D., Senior Research Director and Advisor for the Cloud and Data Center Research Practice at IHS Markit.
         Worldwide SD-WAN revenue
 Company
Revenue (US $M)                                    
% Change
   
 3Q17   
 4Q17
4Q17
vs 3Q17
VeloCloud
$26.0
$28.3
9%
Aryaka
$21.3
$24.4
15%
Silver Peak
$14.1
$17.6
25%
Cisco
$3.1
$15.6
404%
InfoVista
$9.6
$12.3
29%
Citrix
$4.4
$6.0
38%
Talari
$4.1
$5.4
31%
FatPipe
$3.8
$4.5
21%
Huawei
$2.8
$3.3
18%
Riverbed
$1.7
$2.5
49%
CloudGenix
$2.5
$2.5
0%
ZTE
$0.6
$0.7
30%
Viptela
$9.5
N/A
N/A
Other
$18.9
$23.5
25%
Total SD-WAN
$122.1
$146.7
20%
Source: IHS Markit
© 2018 IHS Markit
             
 
“One noteworthy element—we must not lose sight that SD-WAN is equally important for voice and data even though data gets much of the attention in discussions. We can also expect a next wave of features focused on analytics, making use of the rich telemetry data available with SD-WAN,” said Cliff Grossner.
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More Market Highlights:
 
·            Software-defined enterprise WAN revenue increased 20% QoQ from 3Q17
·            4Q17 ADC revenue increased 1% QoQ from 3Q17 and decreased 3% YoY from 4Q16; in CY17, ADC revenue was down 5% over CY16
·            Virtual ADC appliances stood at 29% of 4Q17 ADC revenue
·            F5 garnered 42% ADC market share in 4Q17 with revenue down 4% YoY. Citrix had the #2 spot with 30% of revenue, and A10 (9%) rounded out the top 3 market share spots.
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Research Synopsis:
 
The IHS Markit Data Center Networks Intelligence Service provides quarterly worldwide and regional market size, vendor market share, forecasts through 2022, 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], (4) FC SAN switches by type [chassis, fixed], and (5) FC SAN HBAs. Vendors tracked include A10, ALE, Arista, Array Networks, Aryaka, Barracuda, Broadcom, Cavium, Cisco, Citrix, CloudGenix, Dell, F5, FatPipe, HPE, Huawei, InfoVista, Juniper, KEMP, Radware, Riverbed, Silver Peak, Talari, TELoIP, VMware, ZTE and others.
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Cliff will chair the  OCP Market Impact Assessment session at OCP Summit in San Jose, CA and be at the Open Networking Driving Cloud Innovation panel session at ONS in Los Angeles, CA.

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Related SD-WAN News:

chosen by Alan J Weissberger

  1.  Aryaka wins 2018 SD-WAN Leadership Award

A March 1st press release noted that  Technology Marketing Corp (TMC) has selected Aryaka for the 2018 SD-WAN Leadership Award, recognizing the company for its industry-leading SD-WAN technology. Aryaka’s global SD-WAN solution was honored for its technology leadership, market-driven innovation, growth, and outstanding business execution.

“Aryaka’s year-over-year momentum in the SD-WAN space continues to impress, with many vendors, resellers, and service providers fighting for their share of the market,” said Rich Tehrani, CEO of TMC. “Aryaka’s global SD-WAN solution delivers top performance for both on-premises and cloud-based SaaS applications anywhere in the world. In the past year, the Aryaka team has demonstrated extraordinary industry leadership, growth and customer success, which is why we selected the company for this year’s 2018 SD-WAN Leadership Award.”

“Aryaka is disrupting the enterprise connectivity space by combining a cloud-native private network, SD-WAN, WAN optimization, application acceleration techniques, connectivity to cloud platforms, and network visibility in a single solution that is delivered as-a-service,” said Gary Sevounts, Chief Marketing Officer at Aryaka. “Our goal is to continue to push the envelope and deliver a best-of-breed global SD-WAN solution that enables enterprises to seamlessly manage all of their global connectivity and application delivery needs.”

Deployed by 800 global enterprises, Aryaka is the leading global SD-WAN provider and has the fastest growing SD-WAN solution in the market today, delivering enhanced performance for cloud and on-premises applications worldwide. Aryaka’s global SD-WAN has quickly become the only viable MPLS replacement solution for global enterprises requiring alternatives to legacy WAN infrastructures for mission-critical application delivery.

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2.  Windstream’s SD-WAN revenue tops 15% of sales, CEO says

Software-defined WAN revenue accounts for more than 15% of Windstream Communications’ sales, a little more than a year after the company first offered SD-WAN, CEO Tony Thomas said. The regional carrier is getting 30% to 40% of its business segment sales from SD-WAN, unified communications-as-a-service and on-net services.

Telecompetitor (3/1),  FierceTelecom (3/1) 

 

 

7 thoughts on “IHS-Markit: SD-WAN revenue reached $444M in 2017; Aryaka wins award”

  1. Multiple vendors are competing in the rapidly growing SD-WAN market. Although the technology has been commercially available for only a few years, research firm IDC estimates global SD-WAN infrastructure and services revenues will see a compound annual growth rate (CAGR) of 69.6% and reach $8.05 billion in 2021. As various startups seemingly jump on board the SD-WAN bandwagon every day, it can be difficult to choose a provider.
    Here are a few successful SD-WAN vendors:
    -Aryaka Networks
    -Viptela -acquired by Cisco in 2017
    -VeloCloud- acquired by VMWare in 2017
    -Versa Networks
    -Citrix Netscaler
    https://www.rcrwireless.com/20180207/sd-wan-vendors-to-watch-out-for-in-2018-tag27-tag99

  2. • Cisco’s growth number is wildly skewed. Viptela and Cisco combined had $12.6 million Q317, equating to 20% growth.

  3. Many of these vendors sell products that support SD-WAN functionality, however there is a significant chance that SD-WAN is not enabled. How do we know that these numbers do not include routers, load balancers, traffic accelerators, security appliances that were sold without SD-WAN deployed or perhaps not the necessary licenses even sold?

    Many of these vendors could be inflating the numbers by doing this.

  4. Our job (at IHS-Markit) is to verify all guidance and cross reference this with our market models which have been built based on years of understanding the physics behind technology introductions. You can rest assured the concerns sited in the comments above were just a few of the many factors we take into account before we provide our estimates on vendors, on total market and for our forecasts.

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