The domestic SD-WAN market has expanded more than 100 times in five years

SD-WAN is a new technology that is expected to improve availability, performance, operational manageability, etc. and reduce costs by using network virtualization technology for wide area networks.

According to IDC Japan, the domestic SD-WAN market size in 2016 was about 430 million yen. The company expects this market to expand more than 100 times in five years and reach 50,440 million yen in 2021.

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“Domestic SD-WAN market user spending forecast: 2016 to 2021” 2016 is actual value, 2017 to 2021 is forecast. Source: IDC Japan, 8/2017

As of 2016, early adopter companies that have many overseas bases and are aggressive in adopting advanced technologies have begun to show interest in SD-WAN, and many of the projects are still proof of concept (PoC). At this stage, IDC Japan pointed out that companies are beginning to appear as production environments.

As a factor for the rapid expansion of the SD-WAN market, the company has increased the demand for IT to quickly respond to changes in business, and the burden on IT departments due to the increase in devices / cloud services connected to WAN. And so on.

In addition, the competition for customer acquisition by the new SD-WAN service in the WAN service market provided by telecommunications carriers is also a factor that accelerates the spread.

On the other hand, the obstacle of SD-WAN is that many cheap and mature products / services are already supplied as WAN solutions especially for domestic small and medium-sized bases, whereas SD-WAN solutions are relatively expensive. That is mentioned. However, the company also points out that the provision of relatively reasonable SD-WAN solutions has begun to increase in order to cope with such a domestic environment.

IDC Japan Communications Senior Market Analyst Yoko Ono said, “The speed of changes in companies is increasing. Digital transformations (DX), including IoT (Internet of Things), where a variety of devices are connected to the network, are also being developed. With this rapid change, traditional static WAN operation management cannot respond, and the network operation management burden of IT departments is increasing. It should be understood that the introduction of a network operations management paradigm is the key to enabling these changes. "

Read More; SD-WAN Market Factors