U.S. Cloud Growth Adds Momentum to SD-WAN Adoption

Companies adopting software-defined network solutions and services for secure and flexible infrastructure, ISG Provider Lens™ report says

Software-defined networking continues to grow in the U.S. as enterprises leave behind rigid network infrastructures to achieve digitalization and cloud migration, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Network — Software-defined Solutions and Services report for the U.S. finds the U.S. was the world’s largest market for software-defined wide-area networks (SD-WANs) in 2023, accounting for nearly one-third of global demand. U.S. companies are enthusiastically embracing technologies that benefit from software-defined networking, including hybrid clouds, big data, edge computing, automation and AI.

“The move to the cloud is not finished yet,” said Dieter Thompson, partner and president of ISG’s Network and Software Advisory business. “SD-WANs help to enable smooth, secure cloud migration by reducing complexity and risk.”

SD-WANs and related technologies and services simplify enterprise networks by moving the control layer to the cloud and integrating previously separate resources and processes, the report says. This gives organizations more flexibility, allowing them to manage and monitor networks in real time through automated orchestration and operation based on policies.

In the U.S., many enterprises have embraced further innovations based on SD networking, including intent-based networks, core-to-edge security solutions and 5G mobile and remote-site connectivity, often through managed or co-managed SD-WAN services, ISG says.

Companies are integrating more security infrastructure into enterprise networks as they adopt SD-WANs, the report says. This includes secure access service edge (SASE), a set of SD networking and security components merged in the cloud, which has recently been defined by industry consensus. SASE projects are now moving from pilots to commercial deployments, with adoption expected to accelerate in the next few years. Other enterprises have implemented secure service edge (SSE), consisting of cloud-based tools that represent a subset of SASE.

SD-WAN adoption is expected to grow quickly among small and medium-sized enterprises (SMEs) in the U.S., many of which have distributed workforces and need affordable cloud-based collaboration systems that are easy to manage, ISG says. SMEs may reduce costs by implementing SD-WANs as overlays and purchasing them as a service.

“U.S. enterprises seek a competitive edge through efficiency, flexibility, business continuity and hybrid work,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Providers are delivering tailored SD networking tools and services to help them succeed.”

The report also explores other software-defined networking trends in the U.S., including the growing importance of edge technologies and adoption of advanced networking as a service to improve customer and employee experience.

For more insights into the networking challenges U.S. enterprises are addressing, including slow cloud migrations and the rising incidence of hacking attempts, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Network — Software-defined Solutions and Services report for the U.S. evaluates the capabilities of 40 providers across four quadrants: Managed SD-WAN Services, SDN Transformation Services (Consulting and Implementation), Edge Technologies and Services (including Private 5G) and Secure Access Service Edge (SASE).

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

In addition, Colt, GTT, Logicalis and Microland are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Tech Mahindra is named the global ISG CX Star Performer for 2024 among SDN solutions and services providers. Tech Mahindra earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

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

The 2024 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, Mexico, 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.

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 AI and 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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