RALEIGH, North Carolina, Sept. 26, 2019 /PRNewswire/ — The global market for software-based SD-WANs is expected to grow at a CAGR of 60-65 percent until 2021, according to Beroe Inc, a procurement intelligence firm. SD-WAN deployments are expected to offer increased visibility and control over the WAN network, rather than an alternative to MPLS WANs and also provide cost reduction and bandwidth optimization opportunities.
Around 60-65 percent of enterprises source MPLS-based WAN connectivity services, however, the composition is expected to decrease in the next 5 years. The global MPLS market is expected to grow at a CAGR of 4-5 percent until 2021, to reach a value of $25-27 billion, with the Asia Pacific expected to be the fastest growing market with a growth rate of 7-8 percent.
https://www.beroeinc.com/category-intelligence/wan-market/
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
SD-WAN has the potential to reduce the total cost of ownership of WAN by approximately 50-60 percent, reducing the capital expenditure by 50-60 percent, maintenance by 15-20 percent and reducing the overall operational expenditure by 40-50 percent.
The competition for WAN is expected to increase with the deployment of SD-WAN as the number of service providers is expected to rise. The alternatives for MPLS-based WAN networks have been increasing over the past few years; however, as SD-WAN is considered the next step in the evolution of the network, substitutes are low.
Key Findings:
- Increase in cloud-based services and mobile workforce has exposed the limitations of traditional rigid networks and has contributed to the decline in MPLS-based WAN services market in the past.
- For buyers, migrating to a software designed networking model is becoming essential, as the Internet of Things proliferation is expected to be high across all verticals.
- Enterprises are expected to adopt a hybrid approach to their WAN to support multiple endpoints connected through different technologies within the same network, reducing the cost of services by 30-35 percent.
- Multi-function branch software solutions are capable of playing the role of a router, session border controller, firewall, IDS/IPS, etc, and are in-built with a standard KVM hypervisor.
- Buyers and suppliers have medium power in the traditional WAN and SD-WAN market. Large enterprise accounts are attractive to service providers, however, only the top service providers will be able to cater to the company’s requirements.
- Top adopters of SD-WAN are industrial manufacturing, technology/telecom, banking and financial, healthcare, construction, and retail industries.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
The ideal contract length in the WAN market is 3-4 years, with the option to extend one more year using the same pricing and service levels, based on performance. The bi-vendor strategy is a predominant sourcing model for WAN procurement, where one vendor would serve as primary and the other as secondary.
The report also includes:
Market Analysis:
- Current and Future Market Landscape
- Global Market Size
- Australian Market
- Key End-use Industries
- Market Drivers and Constraints
- Market Trends: Technology and Buying Trends
- SD WAN
Industry Analysis:
- Porter’s Five Forces Analysis
Cost & Pricing Analysis:
- Cost Analysis
- SD-WAN Cost Comparison
Industry Best Practices:
- Sourcing Best Practices
- Leading Vendors
- SD-WAN Implementation Best Practices
- Case Studies
About Beroe Inc.:
Beroe is the world’s leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com
Media Contact:
Debobrata Hembram
[email protected]
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