Sept/Oct 19 - ChannelVision Magazine

virtual reality By Bruce Wirt SD-WAN market revenue, including appliance and control and manage- ment software, rose 8 percent quarter- over-quarter in the first quarter of 2019, according to Josh Bancroft, se- nior analyst at IHS Markit. VMware led the SD-WAN market with a 20 percent share of revenue, followed by Cisco at 13 percent and Aryaka at 12 percent. During the first quarter vendors also continued to reap the rewards of part- nering with multiple telcos, systems integrators and managed service pro- viders, said Bancroft. Within the financial vertical, deal sizes rose, with some deployments with a single customer reaching 800 sites in North America and 3,000 sites in the Europe, Middle East and Africa (EMEA) region. “In our discussions with vendors, it’s becoming apparent that finan- cial enterprises are rearchitecting their legacy WANs with SD-WAN to utilize traffic-routing segmenta- tion features,” said Bancroft. “This ensures that traffic containing sen- sitive customer data is separated from other network traffic, increas- ing data security and aiding in dem- onstrating payment card industry (PCI) compliance.” At the same time, the rise of re- mote and mobile workers will continue to be an important growth driver for the compact SD-WAN appliance form factor, said Bancroft. The compact SD-WAN appliance is a form factor that is designed for use in a home office environment with a weight of about 500 grams. Despite being de- signed for home office use, these ap- pliances also have been placed into a backpack and under battery power. The appliance then provides connec- tivity to SaaS applications by bonding differing LTE links. According to an IHS survey of North American enterprises, 43 per- cent of employees were remote and mobile workers, and that number is expected this to rise to 51 percent by the end of 2019. “Enterprises want to ensure that employees who are remote or mobile still have high levels of connectivity for SaaS-based applications,” Bancroft said. “Application traffic is required to traverse over multiple links to ensure failover for voice and video sessions where constant connectivity is essential, such as for home office- based customer service agents or medical first responders. If SD-WAN vendors have not added compact appliances to their offerings already, they should continue to invest in compact SD-WAN appliance devel- opment to ensure they seize this market opportunity.” SD-WAN Revenue Expands, Appliance Goes Mobile QOS Named California SD-WAN Provider QOS Networks has been selected by the State of California as its SD- WAN deployment and managed solu- tion provider. In 2019, the State of California identified VMware SD-WAN by VeloCloud to be the platform for its network. As a platinum partner of VM- ware, QOS Networks was eligible to deliver the solutions including orches- tration, gateway devices and edge devices alongside ongoing managed services. QOS Networks has been chosen as the sole managed services provider approved for agencies imple- menting the new SD-WAN solution.  QOS Networks was chosen from a large pool of RFP respondents because of its ability to execute, com- mitment to customer experience, and overall expertise in the SD-WAN space. The contract award is publicly stated information available for the general public to view.  Working with the State of Cali- fornia will allow all state-run agen- cies with expiring MPLS contracts to implement next-generation SD-WAN solutions. QOS Networks will procure the hardware, design the network configuration and deploy the solu- tions onsite for each agency. QOS will also provide long-term management that includes network monitoring, troubleshooting and carrier SLA man- agement. State agencies will have full visibility through the orchestration platform to see their network perfor- mance, retrieve advanced reporting and analytics and monitor network changes throughout the contract.  QOS Networks will also be work- ing directly with public sector distribu- tor Carahsoft Technology Corp., a dominant expert in technology for the public sector space. Worldwide SD-WAN Market Share 3Q18 4Q18 1Q19 VMware 18.5% 20% 20.3% Cisco 12.9% 13.3% 13.1% Aryaka 12.5% 11.3% 11.6% Silver Peak 9.5% 8.6% 8.7% Huawei 5.4% 4.7% 5.9% Nuage Networks 5.3% 5.4% 5.4% Fortinet 2.3% 5.3% 3.8% Versa Networks 3.2% 3.3% 3.4% Citrix 3.8% 3.5% 3.3% CloudGenix 2.6% 2.6% 2.6% InfoVista 3.5% 2.6% 2.5% Oracle 0.0% 0.0% 2.2% FatPipe 1.9% 1.9% 1.9% Riverbed 1.7% 1.7% 1.7% Talari 2.4% 2.2% 0.0% Other 14.5% 13.5% 13.6% Source: IHS Markit 48 Channel Vision | September - October, 2019