SD WAN vendors are still blazing in 2018 as anyone close to the networking industry can tell you. It's no wonder - the technology delivers increased network agility, simplicity of WAN configuration, and lower overall costs by reducing the amount of traffic carried over expensive MPLS links. SD WAN vendor adoption is really increasing this year and IDC forecasts market revenue will increase to $8 billion in 2021 (info from this report will be highlighted below).
SD WAN technology has become somewhat of a silver bullet over the last three years, allowing leading enterprises to meet their ever-increasing bandwidth and application performance requirements.
As a managed service provider touching all aspects of telecom and mobility for our clients, Renodis has a unique front row seat as SD WAN vendors morph and this market starts to unfold. The benefits and knowledge of which we are able to pass on to our clients in terms of technology recommendations, financial optimizations, and best practices for support and service. As you read on, think of us as the experts in managed sd wan for hundreds of enterprise telecom and mobility departments...
Like all seismic shifts driven by technology innovation, there will be different types and models of SD WAN vendors scattered across the landscape offering unique variations of SD WAN -- each with their own unique value.
4 SD WAN Vendors to Watch
Some of the biggest winners in 2018 have been the pure-play SD WAN vendors (pure-play meaning "built from the ground up" vs. those that have adopted SD WAN as a new market strategy). Pure-play SD WAN vendors typically have a flexible and logical topology overlay, rich application policy, and high degrees of operational efficiencies they provide to customers.
According to research firm IHS Markit's Data Center Network Equipment Market Tracker Report, some of the top pure play SD WAN vendors include:
1. VeloCloud: Leading SD WAN Vendor
Purchased by VMware in February 2018, VeloCloud leads the way with 22% of market share. The fact that they are leading is no surprise given they were one of the first start-ups to have a commercially available product.
More than 1,000 customers have adopted VeloCloud’s offering as of March 2018. Many enterprises are choosing VeloCloud because of their agnostic hardware approach.
VeloCloud’s number of service-provider partners has exceeded 50 and in fact Renodis was one of the first partners of VeloCloud's technology, supporting client SD WAN implementations since 2015 with our turnkey approach to managed SD WAN.
2. Aryaka: Fastest Growing SD WAN Vendor
Not far behind VeloCloud is the number two pure-play SD WAN vendor, Aryaka, with 18% of the market. In addition, they are the largest independent SD WAN vendor now that VMware acquired VeloCloud.
Enterprises tend to choose Aryaka when they need better application performance globally. Aryaka SD WAN has a cloud-native, private network-based SD-WAN that enables it to deliver significantly better over long distances than other suppliers that use internet links.
3. Silver-Peak: WAN Optimization Vendor
With 500+ customers, Silver-Peak, unlike VeloCloud and Arykaka, is known as a WAN optimization vendor and was the first vendor in this class to work towards an SD WAN vendor play. They are currently third in market size at at $14 million, which equates to about 12 percent market share.
According to IHS Markit's Data Center Network Equipment Market Tracker Report, Silver-Peak's revenue includes it's Boost product and it's WAN optimization product for EdgeConnect in addition to playing in the traditional router market. (Learn the similarities/differences between SD WAN providers and WAN optimization here.)
4. Viptela: SD WAN Vendor Backed by Cisco
Not to be forgotten in this market is Viptela. Their revenue for Q4 2017 was $9.5 million. When combined with Cisco's $3.1 million, it puts them over $10 million.
Currently there is a bit of uncertainty about the future of iWAN and Viptela. Experts believe they will merge into one, but nothing definitely has been released.
As you can see, each SD WAN solution has their own unique benefits and nuances. For enterprises deciding to evaluate SD WAN vendors, it's important to consider your business drivers, level of service and support required to enable this massive change, and performance needs in addition to cost benefits. The combination of these data points will provide the best decision framework to support SD WAN benefits for your organization.