While SD-WAN has been gaining well-deserved recognition over the past few years, the usage of this relatively new-age of technology has dramatically increased the digital transformation of businesses around the industrial landscape. As a result, SD-WAN has become one of the most sought after network infrastructure for the leading organizations, helping them adopt a significantly more comfortable way of communications.
To put things in perspective here, the present market size of the SD-WAN industry (in 2020) is $1.9 billion. However, this is expected to grow to a staggering $8.4 billion in 2025 at a CAGR (compound annual growth rate) of 34.4%. The reason behind such exponential growth expectation is the pandemic, which has pushed organizations around the world to the work-from-home structure. Needless to say, remote working does bring the importance of an advanced, reliable and secure network.
However, when we look back, the data centers were the reliable means of establishing a reliable communication of an enterprise network. Thankfully, the business’s full scale has now changed as things shifted to the cloud networks and things started to evolve. Predictions say that 25% of users are expected to manage their businesses via SD-WAN software within two years.
Thanks to the efforts of Covid-19, the lockdowns across the countries acted as the catalyst to accelerate the transformation of companies. With the significant shift of workforce mobility towards adopting a more connected future, data-driven digital platforms began the new normal, and the demand was soaring to new highs. The pandemic’s recent impacts have not only helped the much-needed push but have further expanded the migration of cloud application workload.
Initially, before the wake of the COVID-19 pandemic, many Network Solutions Providers (NSP) were already looking for a possible solution to get the desired boost in their connectivity to form a digital framework with SD-WAN.
The acceleration of demand
Yes, it’s true that nobody could have thought of the Covid-19 impact and how it did collateral damage to the world’s economies in the current year. The primary network architecture companies running behind the SD-WAN framework had already connected their offices and workplaces through cloud centralized infrastructure. The cloud-integrated infrastructure has come a long way to pivot the distributed workforce.
One of the best-added advantages of SD-WAN was that users now had access to applications and information from anywhere around the world. Operating office was now a matter of fingertips. Moreover, stats say that revenue from SD-WAN vendors is increasing at 59% annually, and was expected to reach a $1.3 billion market by 2020. What’s even more interesting is that the actual market size outrun the estimates by grossing $1.9 billion in the same metrics.
It is a well-established fact that traditional networks are nowhere compared to agility, and the current workplace’s speed demanded. In a scenario where every document needs to be transferred via an online medium, having a reliable transfer mode is the only focus to improve efficiency.
In the past, these legacy systems were only able to work under favourable circumstances with a limited number of people (typically fewer than 30% for knowledge workers). Besides operating at a limited scale, the traditional wireframe would require the team to connect to a VPN.
However, when we compare the circumstances to the current day, things are different.
Fundamentally, in the current state where most of the workforce is operating at the comfort of their homes, the current state of play fails to make sense. On the other hand, the idea of a force being practically connected to a cloud interface makes more sense.
Why have the modern workspaces turned to SD-WAN and Cloud Networking?
First, 40% of WAN traffic can seamlessly fit into the paradigmatic WAN traffic pattern that focuses on starting from the inside source and ending there. The movement of traffic in a closed channel rather than an open one was the whole reason for a WAN in the first place!
Second, a limited portion of the WAN connects over other communication modes where the communication channels connect to an outside source, maintaining a reliable balance between the flow of traffic under every situation.
Third, SD-WAN saves over the cost of setting up an infrastructure as a significant number of workforce shifting to SD-WAN are already connected to cloud servers. Similarly, many organizations also use direct cloud connections (DCC), and a small number of them use WAN-cloud exchanges (WAN-CX).
How SD VAN made its place to the top
SD-WAN has allowed standardization and automation of network infrastructure. Besides being a cheaper and much more useful mode of communication, SD-WAN is also quicker to update over different channels and ensures added protection, saving companies over firewall applications.
The functionalities above of SD-WAN ultimately increase the application’s performance and deliver a top-notch user experience across the frameworks.
However, businesses need to understand SD-WAN before implementing them into their frameworks.
We can confidently say that SD-WAN is the “new normal” for networks
- SD-WAN technology makes use of several SD-WAN vendors, allowing the customers to create a single network infrastructure that helps multiprotocol label switching (MPLS). SD-WAN beats the game of private MPLS connections to offer a seamless user experience. SD-WAN is expected to provide a CAGR of over 60% between 2020-26.
- SD-WANs benefit organizations by eliminating the need to create a framework with extensive routing. This technology provides connectivity and services from a single location and is linked directly to the cloud. SD-WAN also offers the benefit of increased flexibility, allowing organizations to manage peak traffic.
- Another advantage of SD-WAN is that it allows businesses to make their network dynamic and more effective in consuming network resources. SD-WAN is best suited for business organizations that need to deploy their workforce over multiple locations and often experience heavy traffic.
How SD-WAN is playing an essential role in business transformation
SD-WAN and NFV have played a significant role in the automation and virtualization of the enterprise’s network. The reliable means of networking over the cloud have proven to be a ladder to digital dominance for many enterprises.
SD-WAN caters to meet the demand of businesses requiring a unified platform to allow and understand interactions between the customers and its potent consumers.
Moreover, the reliable shift to an infrastructure that can be scaled from a fixed location allows limitless possibilities for organizations’ expansion. The latest updates around technology around cloud interfaces have permitted businesses to implement a strategy successfully and expect returns in a shorter period. Interestingly, SD-WAN was named the most disruptive network tech of 2019.
Ultimately, SD-WAN indeed serves their need for speed when it comes to enterprise networks compared to MPLS.
Opt for a centrally orchestrated SD-WAN solution to improve user experience and to simplify operations today with Lavelle Networks ScaleAOn SD-WAN Solutions.