Gartner SD-WAN Report
Gartner SD-WAN Report
Market Definition/Description
This document was revised on 12 October 2023. The document you
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Software:
o Ability to replace a branch router (e.g., support for Border
Gateway Protocol [BGP])
o Application-aware dynamic path selection (e.g., Layer 7
traffic steering) across multiple physical interfaces
o Virtual private network (VPN)
Form factor for branch, data center and cloud locations:
o Software that can be deployed on a branded hardware
appliance or third-party hardware
o Software deployed in the public cloud
Orchestrator (on-premises or in the cloud) that provides a
centralized mechanism for:
o Configuration (zero-touch configuration)
o Management
o Visibility/Analytics/Troubleshooting
Basic firewall
Software delivered as a virtual network function (VNF), virtual
machine (VM) or container
Branded turnkey hardware appliance
API support
Service chaining capabilities
Magic Quadrant
Figure 1: Magic Quadrant for SD-WAN
Source: Gartner (September 2023)
Vendor Strengths and Cautions
Barracuda
Strengths
Cautions
Cisco
Strengths
Cautions
Cradlepoint
Strengths
Cautions
Forcepoint
Strengths
Cautions
Fortinet
Strengths
Cautions
HPE (Aruba)
Strengths
Cautions
Huawei
Strengths
Cautions
Juniper Networks
Strengths
Cautions
Nuage Networks
Strengths
Cautions
Strengths
Cautions
Peplink
Peplink is a Niche Player in this Magic Quadrant. It has two product
families in this market: Balance for enterprise branch SD-WAN, and
MAX for industry and mobility SD-WAN requirements. Both offerings
include SpeedFusion software technology and InControl 2
orchestration for management. Gartner estimates Peplink has
approximately 6,000 SD-WAN enterprise customers and operates
globally, focusing on midmarket organizations, with specific
verticals targeting wireless WAN use cases. Over the next 18
months, we expect Peplink will invest in Peplink Connectivity
Controller to improve application performance, SpeedFusion cloud
service and long-range antenna integration into its 5G routers.
Strengths
Cautions
Sophos
Sophos is a Niche Player in this Magic Quadrant. It offers Sophos
Firewall, which integrates both SD-WAN and NGFW capabilities on a
single XGS Series appliance as part of an orchestrated offering.
Gartner estimates that the vendor has approximately 18,000 SD-
WAN enterprise customers and operates globally, focusing
primarily on smaller and midmarket organizations with security-first
use cases. Over the next 18 months, we expect Sophos will invest
in integrating its ZTNA connector on the Sophos Firewall, adding
scale to its SD-WAN offering and also adding adaptive FEC.
Strengths
Cautions
Versa Networks
Versa Networks is a Leader in this Magic Quadrant. It has two
offerings: The primary one is Secure SD-WAN, and the second
offering is Versa Titan, built on the same platform as Secure SD-
WAN and delivered as a cloud-based offering. Both include Cloud
Services Gateway appliances or virtual appliances, software
licenses, and orchestration. Gartner estimates that Versa Networks
has approximately 24,000 SD-WAN enterprise customers and
operates globally, addressing clients of all sizes and in all vertical
industries, primarily through service providers. Over the next 18
months, we expect the vendor will invest in expanding its AI
capabilities, observability and extending multicloud support
integrated with SD-WAN orchestration.
Strengths
Cautions
VMware
VMware is a Leader in this Magic Quadrant. It offers VMware SD-
WAN, which includes Edge appliances, optional gateway points of
presence (POPs), software licenses and a cloud-based orchestrator.
Gartner estimates that VMware has approximately 18,000 SD-WAN
enterprise customers and operates globally, serving clients of all
sizes and in all vertical industries, with a go-to-market focused on
service providers. Over the next 18 months, we expect VMware to
make future investments in SD-WAN Cloud Transport (enterprise
private connectivity); integrating security, edge computing, private
5G and SD-WAN into a single platform, and AI-based digital
experience assurance and analytics.
Strengths
Cautions
Added
Dropped
Product Capabilities
Business/Financial Performance
Evaluation Criteria
Ability to Execute
Product or Service: This evaluates vendors by looking at their
overall SD-WAN networking portfolios across the following areas:
Operations NotRated
Innovation High
Challengers
A Challenger has demonstrated sustained execution in the SD-WAN
market, and has clear, long-term viability in the market. Typically,
Challengers have solid products that address most use cases
across multiple verticals in various geographies. However, a
Challenger has not shown the ability to drive, shape and transform
the market.
Visionaries
A Visionary has strong potential to drive and shape the market
going forward in some key areas of SD-WAN, such as AI networking,
SASE or NaaS. Visionaries often help transform the market — from
driving new ideas/innovations, including new business models, to
solving enterprise challenges. Although Visionaries often transform
the market, they typically lack market share, viability, global
coverage and/or complete product capabilities to address most use
cases.
Niche Players
A Niche Player has a complete or near-complete SD-WAN product
offering, but is more focused, such as on geographic reach or
vertical market concentration, typically resulting in limited market
share or limited addressable use cases. Niche Players have a viable
product offering, but have not shown the ability to transform the
market or sustain execution.
Context
Market Forecast
The SD-WAN market is forecast to generate a compound annual
growth rate (CAGR) of 14.6% in end-user spending from 2022
through 2027 (see Forecast Analysis: Enterprise Network
Equipment, Worldwide). This is based on a current SD-WAN market
penetration of about 60% in 2023.
SD-WAN
SSE
Enhanced internet/WAN backbone
Cloud onramp
Multicloud networking
Trends
Current Trends
Convergence of Networking and Security
Today, we primarily see SD-WAN and SSE offerings being integrated
and deployed as dual-vendor SASE. This is largely driven by
the move to distribute internet access to support cloud
applications and change the security perimeter. This goes along
with the deployment of SD-WAN at branch locations to manage the
internet transport. As part of a desire to minimize branch
sprawl and support access to the cloud, we observe more
organizations looking for integrated cloud-delivered security
and thin branch SD-WAN solutions (see 2022 Strategic Roadmap
for SASE Convergence). Dual-vendor SASE is more popular in the
near term since there is a significant deployment of either SD-WAN
or SSE and buyers are looking to add the offering not currently
deployed. Oftentimes, a different vendor is chosen from the original
deployment to complete the solution due to different
requirements. Over time, we expect this to evolve into single-
vendor SASE (see the Future Trends section).
Cloud Onramp
There are various ways to connect to cloud workloads (IaaS, PaaS
or SaaS) where SD-WAN offerings enable integration, automation
and orchestration (see How to Optimize Network Connectivity Into
Public Cloud Providers) to simplify configuration and management.
Options include:
SD-Branch
Gartner increasingly sees vendors building a common orchestration
among LAN, WLAN, WAN and network security, which is known as
SD-branch (and also universal ZTNA). It offers simplicity in
managing LAN, WLAN, WAN and network security policies and
profiles with a single orchestrated solution. Integrating these
domains will increasingly be a differentiating factor for some
vendors in specific verticals such as retail. Although Gartner still
sees customers procuring LAN/WLAN separate from WAN, there is
evidence that this may change for certain customer environments.
Future Trends
AI Networking
There is a trend toward more autonomous and self-driving networks
in which AI/ML technologies can be leveraged to make networking
decisions without or with limited human intervention
(see Innovation Insight: AI Networking Has the Potential to
Revolutionize Network Operations). While much of this is
aspirational today, the objective is to make networking easier for
design and configuration/deployment, with simplified ongoing
management to reduce operating expenditures (opex), increase
speed/agility and improve uptime/performance. Although it is still
early in many vendors’ product development, we are seeing this
functionality incorporated into an increasing number of vendor
solutions offering differentiation. The longer-term challenge will be
customer trust in using such solutions.
SD-WAN
SSE (see Magic Quadrant for Security Service Edge)
Enhanced internet/integrated WAN backbone (see Include
Enhanced Internet as a Viable Option for the Global SD-WAN
Backbone)
Cloud onramp (see How to Optimize Network Connectivity
Into Public Cloud Providers)
Multicloud networking software (see Market Guide for
Multicloud Networking Software)
Single-Vendor SASE
Enterprise SASE adoption is currently dominated
by multivendor solutions (one vendor for networking and one for
security), with some type of orchestration tying it together. Over
time, we expect to see more single-vendor, integrated SASE
solutions incorporating the SSE and SD-WAN branch components
(see Magic Quadrant for Single-Vendor SASE). As the single-vendor
SASE market matures, we expect the capabilities gap to close with
best-of-breed dual-vendor SASE architectures and organizations to
consolidate networking and network security roles, which will drive
the purchase of a single offering. We also expect to see new pricing
models as SD-WAN and network security offerings converge to more
of a per-user model. This will simplify sourcing and offer a tighter
technical integration, ultimately offering a better user experience.
NaaS
While not specific to SD-WAN per se, we do see new consumption
options that can take advantage of a pure
usage/metered/consumption model in terms of per-user or unit of
bandwidth, in addition to more traditional subscription models.
NaaS incorporates hardware, software and management as a
consumption model where the customer doesn’t own the equipment.
It includes turnkey self-service and elastic demand options,
including network refreshes to simplify consumption (see What Is
NaaS, and Should I Adopt It?). While we don’t expect this to be a
dominant consumption model, we do see this as an option for
organizations that want simplicity and a pure operating expenditure
(OPEX)-friendly model.
Market Overview
The market is mainstream and maturing. The supply side remains a
crowded, fragmented vendor landscape, with large established
vendors and smaller providers from multiple segments competing
for market share. There is separation from the top vendors in this
space as we estimate that the top 10 vendors make up over 80% of
the market and the top six vendors make up over 60% of the
market (see Market Share: Enterprise Network Equipment by
Market Segment, Worldwide, 2Q23).
Market Drivers
The SD-WAN market is primarily driven by the following factors:
Vendor Differentiation
Differentiation is mostly based on:
Market Recommendations
I&O leaders responsible for building and managing WANs should:
Evidence
Gartner analysts conducted about 2,000 Gartner end-user
client interactions on the topic of WAN between June 2022
and June 2023.
Gartner analysts conducted more than 1,500 Gartner end-user
client interactions on the topic of SD-WAN between June 2022
and June 2023.
Gartner analysts conducted about 1,200 Gartner end-user
client interactions on the topic of SASE between June 2022
and June 2023.
Vendors included in this research responded to an RFI created
by Gartner analysts.
Market size forecast sources are from Forecast Analysis:
Enterprise Network Equipment, Worldwide.
Analysts reviewed Gartner Peer Insights data for this
market. Gartner Peer Insights is a free peer review and
ratings platform designed for enterprise software and service
decision makers. Reviews go through a strict validation and
moderation process in an effort to ensure they are authentic.
Reviews from the SD-WAN market, submitted from June 2022
through June 2023, have been analyzed for the purpose of this
research.
Gartner analysts reviewed publicly available information
online.
Completeness of Vision
Market Understanding: Ability of the vendor to understand buyers'
wants and needs and to translate those into products and services.
Vendors that show the highest degree of vision listen to and
understand buyers' wants and needs, and can shape or enhance
those with their added vision.
Sales Strategy: The strategy for selling products that uses the
appropriate network of direct and indirect sales, marketing, service,
and communication affiliates that extend the scope and depth of
market reach, skills, expertise, technologies, services and the
customer base.
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