https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

MSP 501


SDWAN  Is it Time For MSPs to Take a Hard Look

SD-WAN: Is it Time For MSPs to Take a Hard Look?

  • Written by Aldrin Brown
  • April 11, 2016
Research suggests businesses are increasingly migrating to the technology, which allows broadband transmission at much lower cost than MPLS links.

Disruption from cloud is being felt in every corner of the IT universe and the emergence of software-defined wide area networks (SD-WAN) could present the latest wave of change for managed services providers (MSPs).

The proliferation of commodity broadband and hybrid IT environments is bolstering the business case for geographically distributed enterprises to ditch pricey T1 and MPLS links, and instead deliver that traffic over low-cost public Internet connections.

While adoption of the technology is still in its infancy, experts say 2016 marks an inflection point that will see a sharp acceleration in commercial use of SD-WAN, and a surge in worldwide revenue that’s estimated to surpass $6 billion by 2020.

“Service providers are looking for ways to add value to their services and to fight being relegated to plumbers providing pipes to customers,” researcher Mike Fratto wrote in a Dec. 2015 market advisory for Current Analysis, Inc. “Managed SD-WAN is nicely aligned with managed services and fits neatly into service providers’ network functions virtualization strategy.”

A new report by market intelligence firm IDC projects $6 billion in SD-WAN spending will be driven by a compound annual growth rate of more than 90 percent from 2015 to 2020.

On Friday, Research and Markets also released a report placing worldwide revenue at $4.66 billion in 2015, and estimating that amount will reach $5.57 billion by 2020.

“North America is expected to have the largest market share and would dominate the SD-WAN market from 2015 to 2020,” according to that study.

IDC found that nearly half of U.S. firms are considering moving to SD-WAN over the next two years, while other research suggests the migration is already well underway.

Roughly 70 percent of organizations with WANs had at-least some Internet-only locations in 2015, according to an article by John Burke, CIO and principal analyst for Nemertes Research

Of those companies, an average of 28 percent of worksites were Internet-only.

“This can reduce cost-per-Mbps of bandwidth by 90 percent or more, and can allow IT to meet pent-up demands for huge bandwidth increases that MPLS costs often made prohibitively expensive,” Burke wrote.

The growing market has drawn the interest of a small-but-growing number of companies vying to be early players.

Last September, Verizon launched a managed SD-WAN offering that utilizes Cisco’s Intelligent WAN (IWAN) platform, promising a reliable, secure hybrid network that allows automatic rerouting of application traffic based on the system’s current state.

“Simply set up the rules for how certain traffic should be treated, and the solution takes care of the rest,” according to a Verizon white paper. “Managed SD-WAN supports growing cloud workloads and unpredictable user demand by measuring delay, jitter and loss, and moving traffic along a path that meets its requirements.”

Firms like Silver Peak, VeloCloud, Viptela and SevOne, are developing solutions to enable monitoring and managing and other SD-WAN-related tools.

Viptela and SevOne, for example, partnered on the SevOne Digital Infrastructure Management Platform, which features a single-pane-of-glass display.

And within days of Verizon’s managed service launch, Silver Peak announced an SD-WAN channel program for partners, and released a network overlay called Unity Edge Connect, aimed at making broadband transmission as secure as MPLS.

“Silver Peak … is making a case that when public Internet connections are managed at a higher level of abstraction, MSPs can provide that same level of security while taking advantage of multiple Internet service providers to optimize network traffic flows at any given time, based on availability and cost,” Mike Vizard wrote in an article for MSPmentor.

SD-WAN vendors are increasingly marketing products to service providers, with “APIs for OSS and BSS integration, function modularity, and flexible licensing models,” said Fratto, the researcher for Current Analysis, Inc.

He argues that MSPs and other service providers hoping to win a share of the SD-WAN market should expect fierce competition from other providers and from networking vendors who sell directly to business customers.

“Enterprises, particularly in North America, distrust the ability of MSPs and SPs to deliver timely services, which providers will have to address in the sales process,” Fratto wrote in the market advisory. “To compete effectively, providers will have to demonstrate that they can deliver better service, faster and less expensively than enterprises can do on their own.”

 

Send tips and news to MSPmentorNews@Penton.com.

Tags: MSPs MSP 501

Related


  • 501 Somewhere Logo
    It’s 501 Somewhere: Janet Schijns on Transformational Leadership
    Schijns talks about what it takes to be a true leader, transformational technology, and her three steps for success.
  • Digital workplace
    2020 MSP 501 Full Report
    An in-depth analysis of the managed services industry based on the world’s largest survey of MSPs, the MSP 501.
  • Business Diversity
    MSP 501 Profile: Monroy IT Services with a Minority's Perspective on the Channel
    Now that he thinks about it, everything makes perfect sense as to why George Monroy became a business owner.
  • Arrows made of clouds
    MSP 501 Profile: Middleground Technologies Reaps Cloud Benefits
    Cloud investment in 2019 helped lay a key foundation for 2020.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • MSP 501 Newcomer Award: Oosha Limited Comes of Age
  • MSP 501 — 2020 EMEA Survey & Report
  • MSP 501 Profile: Xamin on COVID-19 Challenges and Strategic Partnerships
  • MSP 501 Profile: Unique IT Pro on Simple Switches and Boosting Product Offerings

Galleries

View all

New, Changing Partner Programs: AWS, Tech Data, Avaya, Verizon

January 11, 2021

Industry Perspectives

View all

The Rise in Remote Work Increases the Need for Patch Management

January 27, 2021

Partners Share Their 2021 Goals—and Plans for Achieving Them

January 26, 2021

The Importance of Being Security-Centric

January 22, 2021

Webinars

View all

Your Network Perimeter Has Changed

February 18, 2021

In Case of Emergency: The Importance of Proactive Critical Event Management

February 23, 2021

How Managed Hosting Providers Thrive with the Alternative Cloud

February 24, 2021

White Papers

View all

Product Brief: Kaseya VSA Integrated Workflows with BMS and IT Glue

January 26, 2021

Why Subscription Business Model

January 15, 2021

The Ultimate MSP Guide to Sales Efficiency

January 14, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

Building an efficient and profitable #patchmanagement practice in 2021 @ConnectWise #cybersecurity #endpoint #MSP… twitter.com/i/web/status/1…

January 28, 2021
ChannelFutures

International effort takes down #Emotet botnet, but @Netenrich, @digitalshadows, @Vectra_AI say it will be back.… twitter.com/i/web/status/1…

January 28, 2021
ChannelFutures

.@Microsoft @Azure’s Tyler Bryson, new U.S. channel head, talks priorities at @GetNerdio’s #NerdioCon… twitter.com/i/web/status/1…

January 27, 2021
ChannelFutures

.@CryptoStopper hires @GetChanneled to build partner program, act as virtual channel chief. #ransomware… twitter.com/i/web/status/1…

January 27, 2021
ChannelFutures

MSSPs, check for this ‘novel’ social engineering threat from North Korea. #Google. dlvr.it/RrTS9J https://t.co/2mDcnNvkHz

January 27, 2021
ChannelFutures

.@keepersecurity report shows financial sector heavily targeted by #cybercriminals. dlvr.it/RrTBPz https://t.co/joTBNeb2MT

January 27, 2021
ChannelFutures

.@Trustwave unveils new global referral partner program. #cybersecurity dlvr.it/RrT9Td https://t.co/amXCw33UsF

January 27, 2021
ChannelFutures

Ecosystem security provider Cyberpion launches first #partnerprogram. dlvr.it/RrSnxK https://t.co/g7Po3jq8iw

January 27, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X