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A new report from the market research firm Futorium finds adoption of software-defined wide area networks (SD-WANs) is occurring at faster rates than initially appreciated. The research report now estimates $2.2 billion in SD-WAN platform and tools revenue will be generated by 2020, growing to $2.75B in 2021 and $2.5B by 2022. That’s a 130 percent increase from a year ago.
The report notes there are more than 40 vendors participating in a market that is going through several rapid transitions. Early on, the SD-WAN market consisted mainly of appliances that internal IT organizations would deploy in branch offices in place of a router. Those SD-WAN appliances enabled end users in those branch offices to connect directly to an Internet service versus forcing the organization to backhaul all their network traffic through a data center.
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It wasn’t long after the initial deployments that demand for managed SD-WAN services started to escalate. As always, traditional managed service providers and telecommunications carriers are involved in a pitched battle for that business.
Of course, providers of routers did not decide to simply roll over and play dead. In addition to building their own SD-WAN appliances, providers of routers ae also making SD-WAN software available on top of their router platform.