Gartner: SD-WAN providers to disrupt edge router market

  • Gartner: SD-WAN providers to disrupt edge router market

    Gartner: SD-WAN providers to disrupt edge router market

    SD-WAN providers are building products that are replacing routers in the branch office. Gartner says half of WAN edge infrastructure refreshes will be based on SD-WAN by 2020.

     

    Software-defined WAN is poised to make the edge router obsolete in the branch office, a research firm said.

     

    By 2020, more than half of WAN edge infrastructure refreshes will be based on SD-WAN versus traditional routers, Gartner reported. That compares to less than 2% of refreshes handled by SD-WAN providers today. During the same timeframe, router sales will fall 16%, from $3 billion a year to $2.5 billion.

     

    “That’s a pretty radical shift,” Gartner analyst Joe Skorupa told attendees of a webinar held this month.

     

    Companies are deploying SD-WAN for an average subscription fee of $100 to $150 a month, rather than spending thousands of dollars on a WAN router, according to Gartner. The analyst firm has found more than 2,000 paying SD-WAN customers globally, including some using the technology to power large networks.

     

    “We’re certainly well beyond that early adopter phase,” Skorupa said.

     

    One SD-WAN user that would consider tossing its edge routers to cut costs is Sno-Isle Libraries, based in Marysville, Wash. In 2011, the network of 21 community libraries deployed SD-WAN appliances to replace its MPLS network with an assortment of standard internet connections. Sno-Isle’s SD-WAN provider is Talari Networks.

     

    “We’ve been using SD-WAN long enough now that when it comes time to do a product refresh, we might very well consider using an SD-WAN product to replace an edge router,” said John Mulhall, IT manager for Sno-Isle.

     

    One SD-WAN vendor hoping to replace the edge router is Riverbed Technology. In September, the company refreshed its SteelConnect product with router capabilities.

     

    SD-WAN providers building technology for the cloud

    Across enterprises, SD-WAN is gaining ground because traditional WAN architectures often break when trying to meet the quality-of-service demands for public cloud computing, Gartner said. SD-WAN, on the other hand, improves the performance of all applications, on premises and in the cloud.

     

    We’re certainly well beyond that early adopter phase.

     

    One SD-WAN user that would consider tossing its edge routers to cut costs is Sno-Isle Libraries, based in Marysville, Wash. In 2011, the network of 21 community libraries deployed SD-WAN appliances to replace its MPLS network with an assortment of standard internet connections. Sno-Isle’s SD-WAN provider is Talari Networks.

     

    “We’ve been using SD-WAN long enough now that when it comes time to do a product refresh, we might very well consider using an SD-WAN product to replace an edge router,” said John Mulhall, IT manager for Sno-Isle.

     

    SD-WAN providers building technology for the cloud

    Across enterprises, SD-WAN is gaining ground because traditional WAN architectures often break when trying to meet the quality-of-service demands for public cloud computing, Gartner said. SD-WAN, on the other hand, improves the performance of all applications, on premises and in the cloud.
    SD-WAN’s return on investment is expected to drive sales from $130 million this year to $1.25 billion in four years, Gartner said. More than 75% of SD-WAN revenue this year will go to startups. Two of them will account for more than half of the sales. Gartner did not name the vendors.

     

     

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