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Categories: Cisco SD-WAN VeloCloud Viptela VMware

#Cisco and #VMware are in a “two-horse race” for the No. 1 software-defined wide-area network ( #SDWAN) vendor spot, an IHS Markit report says. The SD-WAN market totaled $137 million worldwide in the first half of 2017, according to the IHS Markit Data Center and Enterprise SDN Hardware and Software Biannual Market Tracker. But the market is forecasted to reach $3.3 billion by 2021.

Recent deals by @Cisco and @VMware set up these two vendors to compete for the top spot.

In August, Cisco completed its $610 million acquisition of @Viptela, which was ranked as the No. 2 SD-WAN company in the first half of 2017. Earlier this month, VMware bought SD-WAN revenue leader, @VeloCloud, for an undisclosed amount.

VeloCloud’s revenue reached $42 million, or 31 percent market share, in the first half of the year, according to IHS.  Viptela’s totaled $16.9 million, or 12 percent.

“VMware and Cisco have acquired the two SD-WAN market share leader positions, making the SD-WAN market a two-horse race for the number-one spot,” said IHS Markit Analyst Cliff Grossner in a statement. “And we could see even more consolidation as vendors set out to add SD‑WAN to their capability sets, especially since the technology is key to supporting connectivity in the multi-clouds that enterprises are building.”

Both service providers partnering with SD-WAN vendors to deploy overlay solutions, and virtual network function (VNF)-based solutions becoming more closely integrated with carrier operations and business support systems, are driving market growth.

The report also found that data center and enterprise software-defined networking (SDN)revenue for in-use SDN-capable Ethernet switches, SDN controllers, and SD-WAN increased 5.4 percent in the first half of 2017 compared to the same period last year.

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