SD-WANS TO REPLACE ROUTERS, BUT WHICH SD-WAN IS THE QUESTION
No, the biggest message came in some startling statistics. Half the market revenue is held by just two startups, which begs the question: With 30-plus vendors in the SDWAN space, are you sure the SDWAN vendor you're considering has the cash for the long haul?
No more routing
Back in September, we wrote about the argument for replacing routing with SD-WANs. It's a message we've been less than half of what we were paying for maintenance," Skorupa quoted the company as saying.
And the retailer isn't alone. Currently, there are more than 2,000 commercial SD-WAN paying customers. More than 50,000 branches are deployed based on a single SD-WAN product. Gartner expects that by 2020, SD-WAN sales will be worth about $1.25 billion, representing a 15 percent compound annual rise.
At the same time, router sales are expected to drop by 23 percent, and branch office router sales by more than 60 percent by 2020, as 50 percent of all enterprise routers are replaced by SD-WAN.
Too few SD-WAN choices? As with any young market, vendor sourcing can be an issue and that's definitely true for SD-WANs. While there are more than 30 SD-WAN startups of one kind or another, not all of them are showing substantial sales. Skorupa did not identify specific vendors and market share, but he did say that of the estimated $130 million in sales during 2016, 50 percent of revenue is coming from just two startups.