26 September, 2019
RALEIGH, North Carolina, September 26, 2019 - The global market for software-based SD-WANs is expected to grow at a CAGR of 60-65 percent until 2021, according to Beroe Inc, a procurement intelligence firm. SD-WAN deployments are expected to offer increased visibility and control over the WAN network, rather than an alternative to MPLS WANs and also provide cost reduction and bandwidth optimization opportunities.
Around 60-65 percent of enterprises source MPLS-based WAN connectivity services, however, the composition is expected to decrease in the next 5 years. The global MPLS market is expected to grow at a CAGR of 4-5 percent until 2021, to reach a value of $25-27 billion, with the Asia Pacific expected to be the fastest growing market with a growth rate of 7-8 percent.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
SD-WAN has the potential to reduce the total cost of ownership of WAN by approximately 50-60 percent, reducing the capital expenditure by 50-60 percent, maintenance by 15-20 percent and reducing the overall operational expenditure by 40-50 percent.
The competition for WAN is expected to increase with the deployment of SD-WAN as the number of service providers is expected to rise. The alternatives for MPLS-based WAN networks have been increasing over the past few years; however, as SD-WAN is considered the next step in the evolution of the network, substitutes are low.
The research methodology adopted for the report included:
The ideal contract length in the WAN market is 3-4 years, with the option to extend one more year using the same pricing and service levels, based on performance. The bi-vendor strategy is a predominant sourcing model for WAN procurement, where one vendor would serve as primary and the other as secondary.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com