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Cisco Dominates Latest IDC SD-WAN Market Share Study

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Cisco Systems leads the competition in the latest IDC software-defined wide area networking (SD-WAN) study.

Cisco holds nearly 47% of the SD-WAN infrastructure market, according to IDC’s market share and market forecast reports. The company earned $638 million last year in SD-WAN infrastructure sales – a year-over-year increase of more than 55%.

Cisco’s market share includes revenue from Viptela and Meraki, as well as ISR/ASR routers used for SD-WAN. VMware, which owns VeloCloud Networks, trailed with a market share just under 9%. Silver Peak Systems was close behind VMware with 7.4%, followed by Nuage Networks, Riverbed, Aryaka, and Huawei.

Total market sales added up to $1.37 billion at the end of 2018, which was nearly 65% growth over the course of the year.

Brandon Butler, who covers enterprise networking as a senior research analyst for IDC’s network infrastructure group, divided the vendors into two general categories: traditional enterprise networking vendors like Cisco and VMware that leverage their existing networking equipment, and WAN optimization companies such as Riverbed and Silver Peak that have added the ability to manage multiple traffic links on a common platform.

IDC defines SD-WAN as “a dynamic, policy-enabled hybrid WAN that uses at least two or more connection methods and includes a centralized application-based policy controller that provides intelligent path selection, along with an optional forwarder for routing capability.”

IDC expects the market to hit $5.25 billion in 2023 for an almost 31% compound annual growth rate. Butler called SD-WAN one of the fastest growing areas of enterprise networking. He pointed to several key drivers that should continue over the next five years.

Butler, Brandon_IDC

IDC’s Brandon Butler

“This technology really enables enterprises to better manage their WAN deployments,” Butler said. “It allows them to optimize their connections to cloud-based services, both SaaS and IaaS. And it provides them an opportunity to potentially save money, to be able to integrate in lower-cost connectivity methods instead of just relying on MPLS.”

Rohit Mehra, IDC’s vice president of network infrastructure, agreed that traditional enterprise WANs are struggling to support SaaS apps and various cloud strategies. He said using multiple connection types makes management easier for businesses and improves application performance.

“Combined with the rapid embrace of SD-WAN by leading communications service providers globally, these trends continue to drive deployments of SD-WAN, providing enterprises with dynamic management of hybrid WAN connections and the ability to guarantee high levels of quality of service on a per-application basis,” Mehra said.

Anand Oswal, the senior vice president of engineering for Cisco’s enterprise networking business, said the IDC survey shows the success of Cisco’s …

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2 comments

  1. Avatar Dan H July 25, 2019 @ 5:02 am

    I don’t think you understand how VeloCloud works.

    “traditional enterprise networking vendors like Cisco and VMware that leverage their existing networking equipment, and WAN optimization companies such as Riverbed and Silver Peak that have added the ability to manage multiple traffic links on a common platform.”

    Additionally, are you measuring market share by total revenue…including revenue from costly proprietary ISR upgrades required for Cisco’s solution but not the others?

    That’s like stating that Louis Vuitton dominates the handbag space because you drastically overpay for a few pieces of leather based on blind allegiance to a brand promoted by the Kardashians.

  2. Avatar Phil V July 26, 2019 @ 10:11 pm

    You rolled Cisco ISR revenue into the market comparison? Seriously? You claim to understand the technology?

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