According to the latest report, SD-WAN sales could hit $2.2 billion by 2022.
According to the SD-WAN study from Dell’Oro Group, caught by SDXCentral.com, SD-WAN will continue to be quite a popular technology, hitting sales of $2.2 billion by 2022, which is a 35 percent compounded annual growth rate (CAGR).
In addition to SD-WAN, the same report suggest that the revenue from software components, which includes a controller and virtual network functions (VNFs), will grow twice as fast as hardware side, with revenue rising at a 41 percent CAGR during the next five years. This is a significantly higher than 21 percent CAGR on the hardware side.
The report also states that enterprises will be major customers as companies will deploy and manage their own SD-WAN offerings or use resellers or system integrators. On the other hand, service provider managed SD-WAN services will grow at a faster rate with an expected average annual rate of 40 percent in the next five years.
The report also suggests that there is a minor slowdown in the market due to recent two major acquisitions, which should be cleared in the second half of the year. These two include Cisco’s $610 million acquisition of Viptela and VMWare’s acquisition of VeloCloud. This is due to the fact that customers are waiting to see how these two companies will integrate SD-WAN into their own product offerings.
The report from Dell’Oro lines up with earlier predictions from other research analysts, which all suggest that SD-WAN market will grow significantly in the next few years.