On the impact of SD-WAN on enterprise services

Now more and more manufacturers are keen on SD-WAN, although the scale is small, but it does not affect their applications, because SD-WAN brings more efficient management to enterprises, they are willing to invest such.

Brian Washburn, head of Ovum's network transformation and cloud computing practice, said that while enterprise-wide adoption of software-defined wide area networks (SD-WANs) is still relatively small, SD-WAN has had a huge impact on enterprise services. This is because SD-WAN is a collection of features designed for the enterprise: this technology enables the enterprise's hybrid network to achieve more flexible operation and easier management.

On the impact of SD-WAN on enterprise services

When discussing their network needs with companies, Ovum identified three topics that resonate. The first is to make it easier to centrally manage remote devices through a cloud-managed controller and portal interface. The second topic is policy management, which requires administrators to think about their network in terms of application delivery rather than low-level network mapping. The third topic is to not consider the underlying circuit conditions while integrating MPLS and Internet ports. Combining these three topics into one quotation is very attractive to the company. SD-WAN can do just that: it integrates enterprise MPLS and Internet bandwidth; manages resources at the application layer; and centrally controls all remote devices.

In addition, according to discussions with companies, the amount of work required to convert from existing enterprise WANs dilutes their interest in upgrading. Large enterprises have built their networks with a complex set of tools, devices, management systems, and application combinations. SD-WAN may replace traditional routers and firewalls, but the enterprise environment is not that simple. For enterprises, even a migration to SD-WAN may be a good idea, but if it is too complicated, then the IT department will be more willing to focus on other ICT priorities (such as cloud implementation).

This is why service providers are excited about SD-WAN. When companies want these features, but do not have in-house expertise or resources to handle them themselves, they open up market opportunities for external assistance. There are opportunities for third-party assessments, web design, professional installations, and full suite of management services. Service providers have learned about this, and now more and more providers are already taking the opportunity. According to Ovum's statistics, there are nearly a hundred SD-WAN solutions from service providers so far, and there will certainly be more in the future.

Once a provider has an SD-WAN solution and is up and running, the next big challenge is how to effectively sell. Service providers need to train their sales force to identify SD-WAN opportunities, which need to be supported by appropriately trained technical talent. Salespeople may also need role-based training to educate decision makers. Providers need to scribe between standard implementation assistance and custom professional services and provide a hosted service layer. Finally, providers need to have an attractive cost model. Most providers are still very conservative about their SD-WAN pricing, in part because the providers themselves are still studying the company's expectations for SD-WAN service packs and how they tend to make consumer payments.

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