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Report: SD-WAN to Top $2.9B by 2021Software-defined wide area network (SD-WAN) will continue its upward trajectory. To wit: IHS Markit said in a report on Wednesday that SD-WAN revenue was projected to reach $2.9 billion by 2021. Last year, SD-WAN revenue clocked in at $87 million, with $31 million of that total coming in the fourth quarter, according to the IHS report. SD-WAN services can be delivered through a network-based solution or a premise-based model, via the cloud. Enterprises and service providers that utilize SD-WAN can cut down on the cost of relying on expensive MPLS services. With SD-WAN, customers can either use private MPLS circuits for their mission critical traffic, or the public Internet for less sensitive material. Based on policies that are in a central controller, SD-WAN software forwards traffic across the link that is best suited to handle that flow's SLA requirements, without needing a network engineer. Service providers, including Orange (NYSE: FTE), AT&T Inc. (NYSE: T), BT , Telstra Corp. Ltd. (ASX: TLS; NZK: TLS) and CenturyLink Inc. (NYSE: CTL), have embraced SD-WAN in order to offer services to their enterprise customers, but there are some concerns about SD-WAN. While enterprises are clamoring for SD-WAN, there's a plethora of vendors peddling their SD-WAN solutions, which has led some service providers to voice interoperability concerns. (See Tata, Colt Take Vendors to Task on SD-WAN Interoperability.) In a Telco Transformation Q&A last year, John Isch, director of network and voice practice for North America at Orange Business Services, said that a wave of consolidation among the SD-WAN vendors was inevitable. (See Orange's Isch: Consolidation of SD-WAN Vendors 'Inevitable'.) According to IHS, the growing popularity of SD-WAN is impacting WAN optimization appliance revenue, which declined 9% in the fourth quarter and fell 20% from a year ago. Reflecting the move towards virtualization, bare metal switch revenue increased 27% year-over-year in the fourth quarter of 2016. Application Delivery Controllers (ADCs) revenue slipped down 3% sequentially in the fourth quarter of 2016, and was down 8% year-over-year, according to the report. Worldwide data center network equipment revenue -- including data center Ethernet switches, ADCs, SD-WAN and WAN optimization appliances -- totaled $3.5 billion in Q4 2016, which was a 4% increase from Q3 2016. All told in 2016, revenue was up 10% to $12.9 billion. Related posts:
— Mike Robuck, Editor, Telco Transformation |
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CenturyLink's survey also asked IT professionals about SD-WAN, Ethernet and MPLS.
On-the-Air Thursdays Digital Audio
ARCHIVED | December 7, 2017, 12pm EST
Orange has been one of the leading proponents of SDN and NFV. In this Telco Transformation radio show, Orange's John Isch provides some perspective on his company's NFV/SDN journey.
Special Huawei Video
Huawei Network Transformation Seminar The adoption of virtualization technology and cloud architectures by telecom network operators is now well underway but there is still a long way to go before the transition to an era of Network Functions Cloudification (NFC) is complete. |
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