SD-WAN soars despite pandemic, says leading analyst

Pictured: Shin Umeda, Vice President at Dell’Oro Group


The worldwide market for SD-WAN solutions grew strongly in the first nine months of this year, despite the COVID pandemic which arrested growth in many other tech sectors. This is one of the key findings of research into the SD-WAN market conducted by independent analyst firm the Dell’Oro Group.

The research revealed that SD-WAN sales rose 20% over those three quarters compared to the same period the prior year. It also showed that competition for SD-WAN market share between vendors remains fierce. Dell’Oro’s rankings for the third quarter of 2020 showed VMware, Cisco, Fortinet, Versa and Silver Peak holding the top five spots.

“Demand for SD-WAN is holding up well in the face of the COVID-19 pandemic, especially when compared to hardware-based networking technologies such as access routers,” said Shin Umeda, Vice President at Dell’Oro Group. “Demand for enterprise networking gear has stabilized from the first half of the year, and we see this as a precursor to the SD-WAN market acceleration that we are forecasting for next year.”

A different report from Dell’Oro total has shown that global revenue for broadband access equipment increased to $3.1bn for the third quarter of 2020, a rise of just 1%. Growth came from spending on cable infrastructure and CPE equipment, as well as sustained spending on PON equipment.

“The COVID-19 pandemic continues to accelerate operators’ fibre and cable capacity expansions,” said Jeff Heynen, Vice President, Broadband Access and Home Networking. “The net result is a faster transition to premium 1Gbps residential services,” explained Heynen.
Meanwhile wireless LAN market sales rose 6% year-over-year, revealed De’’Oro, as government spend offset declines in business spend. Wireless LAN manufacturers such as Cisco, Extreme Networks, Juniper Mist and Ruckus all benefited.



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