U.S. Leads in SDN as Multi-cloud Migrations Pick up Pace

U.S. companies are rapidly adopting SD-WANs to reduce costs, increase flexibility and securely connect far-flung operations, ISG Provider Lens™ report says

The U.S. is adopting software-defined networking (SDN) faster than any other region as more enterprises embrace multi-cloud architectures and prepare to support distributed workforces and enhance cybersecurity and business continuity, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Network — Software Defined Solutions and Services report for the U.S. finds the U.S. market for software-defined wide-area networks (SD-WANs) has pulled ahead of the rest of the world in recent years, driven by faster and more far-reaching changes in IT. The U.S. market now consumes more than 30 percent of the world’s SDN solutions and services, ISG says. U.S. companies continue to accelerate efforts to cut costs while improving their flexibility, agility, competitiveness and customer and user experiences, especially through multi-cloud strategies.

“SDN is a proven means of assisting cloud migration,” said Dieter Thompson, partner and president of ISG’s Network and Software Advisory business. “Most U.S. enterprises recognize that successful IT evolution requires network modernization.”

SD-WAN technology moves the network control layer to the cloud, enabling real-time management via a single pane of glass through policy and automation. This helps organizations improve network automation, orchestration and integration and easily add applications and network resources, ISG says. SD-WAN provides a foundation for deploying edge computing, remote work sites and many new technologies, including AI and ML solutions.

Rising cybersecurity concerns are also driving up interest in SD-WANs, the report says. Secure access service edge (SASE), which combines SD-WAN with a set of advanced security tools, is a high-growth area of U.S. enterprise transformation, with growth expected to accelerate in the coming years. Some organizations that have already deployed SD-WANs are enhancing their security by integrating secure service edge (SSE), a set of cloud-based tools that offers part or all the benefits of SASE.

“SASE is where enterprise networking and security converge,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “It has matured from pilot projects to many real commercial deployments, and providers now offer fully managed SASE services.”

U.S. enterprises increasingly favor fully managed or co-managed SD-WANs over buying and deploying SD-WANs themselves, potentially because of the overall complexity of modern networks and the difficulty of hiring and retaining staff with the necessary skills, ISG says.

The report also covers other SDN trends in the U.S., including the growing demand for SD-WANs among small and medium-sized companies and the importance of the technology for IoT.

For more insights into U.S. companies’ biggest SD-WAN challenges and advice on ensuring you have the latest SD-WAN technologies, see the ISG Provider Lens™ Focal Points briefing here.

The 2023 ISG Provider Lens™ Network — Software Defined Solutions and Services report for the U.S. evaluates the capabilities of 45 providers across five quadrants: Managed SD-WAN, SDN Transformation Services (Consulting & Implementation), Enterprise Networks Technology and Service Suppliers, Edge Technologies and Services and SASE Solutions and Services.

The report names AT&T, Orange Business, Verizon and Wipro as Leaders in all five quadrants. It names Accenture, Apcela, Lumen and T-Mobile as Leaders in three quadrants each and Cato Networks, Comcast Business, Kyndryl and Tech Mahindra as Leaders in two quadrants each. Aruba, Extreme Networks, GTT, Microland and VMware are named as Leaders in one quadrant each.

In addition, Microland is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. TCS is named as a Rising Star in one quadrant.

Customized versions of the report are available from Apcela, Comcast, GTT and Microland.

The 2023 ISG Provider Lens™ Network — Software Defined Solutions and Services report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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