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Overall SD-WAN Revenue to Reach Almost 200 Million by 2023
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The SD-WAN market will present a huge transformation in the telecommunication market over the next 5 years in Latin America as the traditional wide area networks (WANs) are under pressure to keep up with increased enterprise demand for agile, bandwidth-heavy, and latency-sensitive to access and utilize information. The SD-WAN solution uses software defined networking (SDN) principles to separate the data plane from the control plane and create an overlay network. The abstracted or virtualized network intelligence is controlled and managed via a centralized controller located in the enterprise data center or provider data center or cloud. Via the controller, enterprises can deploy a combination of transport services (MPLS, Internet, Ethernet, Wireless) to build their WAN.SD-WAN functionality is enabled by deploying physical or virtual CPEs at customer sites or in the cloud. Some vendors pre-package the vCPE as an AWS or Azure instance.A virtual CPE or appliance is a pre-packaged software solution that runs on a standard hypervisor-based virtualization platform. The functionality of a virtual appliance should, in theory, match identically to its physical counterpart, which is also software-based; most providers of virtual appliances attempt to assure similar functionality and performance levels across their physical and virtual appliances.
The current market size for 2018 is provided and forecast until 2023. The study provides the following:
The Latin American market is still in a nascent stage. As a result, there are opportunities for new entrants, investments, and space for the existing SD-WAN providers to improve the quality of their offers and move closer to customers, increasing their revenues and evangelize the market.
The reasons for companies to acquire SD-WAN solutions are many times the same in all Latin American countries, cost reduction being the main one. However, market maturity in each country differs in terms of budget assigned for SD-WAN projects.
SD-WAN offers clients an important alternative to MPLS dependency, bringing several benefits for companies such as cost reduction, speed to market, and branch office connectivity among many others.
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