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SD-WAN Revenue Hits $162M in First Quarter of 2018

VMware holds the top spot for market share, but is being closely chased by Aryaka

 By Sean Michael Kerner | Posted Jun 19, 2018
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The market for software-defined WAN (SD-WAN) is growing rapidly according to the 1Q18 Data Center Network Equipment Market Tracker from IHS Markit.

The report noted that SD-WAN appliance, control and management software revenue came in at $162M in the first quarter of 2018, a 2.3x gain over the first quarter of 2017 and a 12 percent gain over the fourth quarter of 2017.

The rapid growth in SD-WAN market revenues is something that IHS Markit has been tracking over the past year. In the third quarter of 2017, revenues were $116 million, which was a 2.8x year-over-year gain.

"SD-WAN is currently a maturing market, expected to reach $861M worldwide in 2018, as early adopters of SD-WAN are expanding existing deployments, having proved the SD-WAN business case," Cliff Grossner Ph.D., senior research director and advisor for cloud and data center at IHS Markit, wrote in a statement. "Adoption of SD-WAN is now ramping even in compliance-sensitive verticals such as healthcare and financial."

Vendors

From a vendor perspective, market share positions remain much as they were at the end of 2017. VMware holds the top spot, with 19 percent share, thanks in large part to the company's acquisition of VeloCloud.

Aryaka holds down the number two post with 18 percent revenue share, while Silver Peak came in third at 12 percent.

"Many SD-WAN vendors have begun to incorporate analytics, utilizing rich telemetry data, into SD-WAN management platforms–enabling enterprises to monitor application traffic flow between multi-cloud environments," Grossner said.

IHS SD WAN 1Q18

Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.

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