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SD-WAN is one of the most important transformational technologies that enables the transition from closed proprietary solutions to software driven networks. SD-WAN deployments are experiencing exponential growth and are transforming the industry from pure connectivity towards WANs that offer the following:
The types of financial benefits SD-WAN offers are captured in Figure 7.
While this SD-WAN offers attractive features for the enterprise, Telco may perceive this shift as revenue erosion. SD-WAN counters this challenge by enabling the SP/Telco to expand revenue from the following:
SD-WAN extends the trend of moving services to the cloud. The data center (AWS, Azure), applications (Office365, Workday), and storage (Dropbox and Google Drive) easily move to the cloud. SD-WAN with transport independent overlay and orchestration brings the network to the cloud.
The market for SD-WAN is growing, IDC reports 50 percent of enterprises are expected to use SD-WAN the next two years and also 45 percent of enterprises expect to spend more on SD-WAN during each of those years.