Frost Radar™: Latin American Managed SD-WAN Services Market, 2021

The Latin American managed software-defined wide area network (SD-WAN) services market is in the nascent phase of the product life cycle. SD-WAN is attracting the attention of enterprises eager to leverage the business benefits the technology offers; for example, faster deployment of branch sites, cost savings from using private and public networks, optimized cloud connectivity, and application-aware routing. Market revenues for 2020 reached $142.4 million, and 110,850 SD-WAN sites are operational today. SD-WAN´s application-aware routing capability positions companies to intelligently route their traffic over the best network solution available at any time, in accordance with internal policies. This means that enterprises do not have to depend solely on multiprotocol label switching (MPLS) links for multi-site connectivity, but instead can benefit from both private and public networks though hybrid networking. Private networks provide greater security and reliability while internet connectivity provides cost-effective, extensive reach. The ability to ensure optimal application performance regardless of the underlying transport and to control branch-site routing policies remotely is especially attractive to industry verticals like retail, manufacturing, financial services, healthcare, and other verticals with widespread branch locations. SD-WAN gives enterprises immense control over their WANs by enabling them to make changes to the network based on centrally defined application policies. The SD-WAN appliances are plug-and-play devices with zero-touch provisioning that auto configure once connected to the network, thus dramatically reducing installation times. The Latin American managed SD-WAN service market remains fragmented with network service providers (NSPs), managed service providers (MSPs), systems integrators (Sis), and value-added resellers (VARs) competing for opportunities across business segments. In this Radar™, Frost & Sullivan focuses on leading NSPs that have full-fledged managed SD-WAN offerings in the market. Service providers are primarily analyzed based on their managed SD-WAN portfolios, which include but are not limited to: choice of SD-WAN vendor solutions; the underlay choices; managed service support before, during, and after deployment; self-service portals and network management capabilities; and the ability to deliver on value-added services to create customer stickiness. The competitive Radar™ mapping is based on full-year 2020 quantitative data (a combination of operational sites and revenues) and features and functionalities that have been generally available in the market for at least 6 months. Frost & Sullivan independently plotted the top 6 companies in this Frost Radar™ analysis. The Radar™ reveals the market positioning of each company using its Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each company based on its strengths, opportunities, and market positioning. We discuss strategic market imperatives and the competitive environment that vendors operate in as well as make recommendations for each provider to spur growth. Author: Gina Sanchez