Microsoft and VMware deepen SD-WAN ties as market surges

Pictured: Shin Umeda of Dell’Oro Group


Microsoft and VMware have taken their longstanding collaboration to a new level by further integrating their application and network technologies. The moves is designed to support customers looking for secure WAN access to critical enterprise applications.


The latest move brings together Microsoft’s Azure Virtual WAN Hub with VMware’s VeloCloud SD-WAN technology. It means that VMware’s SD-WAN customers are now able to connect resources via the networking, security, and routing services integral to the Azure WAN Hub. Microsoft Azure Virtual WAN Hub delivers optimized and automated branch connectivity to Azure services.


The news follows a report from Dell’Oro Group showing that the worldwide SD-WAN market grew 50 percent in the fourth quarter of 2020, compared to the prior year. The top five vendors in revenue share for the full-year 2020 were led by Cisco, followed by VMware, Fortinet, Versa, and HPE/Silver Peak.


“The combination of pent-up demand caused by the COVID-19 pandemic and an acceleration away from legacy technologies created a surge in SD-WAN adoption during the fourth quarter,” said Shin Umeda, Vice President at Dell’Oro Group. “On a full-year basis, the market grew 32 percent in 2020, which was about half the rate of the prior year, but very impressive given the challenging macroeconomic environment that we faced throughout the year.”



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