Industry-leading SD-WAN vendors' 2017 Q1 revenue status

  • As the wave of SD-WAN continues to climb, software-defined wide area network (SD-WAN) vendors are gaining market share, and IHS Markit analyst Cliff Grossner recently provided the first-quarter revenue for leading SD-WAN vendors.

    According to the IHS Technology Data Center Network Equipment Quarterly Market Tracking Report, SD-WAN revenues for the first quarter of 2017 totaled $38.5 million.

     

    Viptela holds a leading position in the market with a total revenue of $7.7 million and a market share of 21%; VeloCloud announced its first quarter revenue of $4.9 million, accounting for 14% of the market; the report also shows that Talari Networks is the first Quarterly revenue was $3.8 million, accounting for 11% of the market.

    Viptela is the industry's leading SD-WAN vendor with three times the market share of Talari Networks, which is currently being acquired by Cisco for $610 million.

    Although the SD-WAN market is still not mature enough, Grossner said that there is little room for new SD-WAN vendors to develop at this point. He said: "I think the market for the base transport solution is quite stable."

     

    But when it comes to how to differentiate the revenue-receiving parts of these SD-WAN vendors, Grossner says many vendors offer different levels of additional services in their products, such as security, monitoring, WAN optimization, dynamic path routing and transport.

    IHS also sees value in channel partnerships, which may help SD-WAN vendors establish direct contact with enterprises, and SD-WAN is gaining the most appeal. According to Grossner, this is directly related to how vendors sell their products and how the product scales and meets user needs.

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