A software-based approach to managing the connections between data centers, SD-WAN is gaining traction among enterprises as a better alternative to network management. Its increasing popularity has been validated by Gartner who noted SD-WAN can turn networks from "fragile to agile," and this factor makes it particularly useful for the management of specific applications at smaller sites.
We were keen to understand the telcos’ perspective on the rising interest in SD-WAN by enterprises, so we surveyed 103 service providers in conjunction with Amdocs, VMWare and Heavy Reading analysts to gauge the key challenges, areas of growth and industries that are ripe for SD-WAN adoption. Here’s what we learned:
Where the opportunities are
The industries that telcos noted as being “high-priority” are also those where there are outsized opportunities for growth. Retail, for one, was marked as a high priority industry by telcos (45% of respondents) for SD-WAN adoption. That’s because the network acts as a critical avenue for business continuity in this industry: consumers access retailers both in-store and through multiple digital touchpoints, and important information is constantly flowing between warehouses, store locations and delivery centers. As such, getting SD-WAN into the hands of retail IT teams and bringing more agility into their infrastructure can have a major impact on their business.
Other industries listed as priority are manufacturing (38%) and healthcare (32%). For the former, the quality of network connections between machines is what dictates if factories can meet scheduled outputs and deliveries, maintain supply chain continuity and meet business goals. For the latter, these past two years have shown us the importance of a secure and reliable telehealth offering, and upgrading networks to a better, more agile system can help support that. Almost every industry heavily relies on network connection to maintain operations, but for telcos, it’s retail, manufacturing and healthcare that offer the most opportunity and growth with SD-WAN adoption.
Where the challenges lie
For all of its benefits, SD-WAN network architecture is not without its challenges. Most telcos agree that when looking to build a managed SD-WAN offering for enterprises, the most challenging aspect is considering how to monitor network performance (66%). This is also an issue that grows as the business does: 71% of telcos with annual revenue exceeding $5B mentioned this being the biggest struggle.
Managing network performance easily comes down to using the right tools, and making sure they work well together. Yet, almost two-thirds of respondents are using more than three network performance management tools, and 16% are using more than five. The more bloated the tech stack, the greater opportunity for conflict; consolidating this down to something more streamlined will undoubtedly improve outcomes.
What the fix is
How to overcome these challenges? For many service providers, the answer lies in automated technologies. More than a third (37%) of respondents said that automation is the best option for managing performance of the network and is a key component of their tech stacks. While many have already adopted automated technology to help with verification, activation and provisioning, those who haven’t yet did note it’s a top priority for the future. For those where adoption isn’t viable right now, another option to manage these challenges can be outsourcing active monitoring to a third-party provider.
SD-WAN can be a useful tool that opens up new opportunities for enterprises and telcos alike. Telcos can buffer their offerings and ensure better performance, deployment and end-user experience. This is a major claim, however, and service providers need to be able to back it up. With active performance monitoring technology and full visibility of the network, they’re better equipped to fulfill this promise. Not only will enterprises get better network performance and become more agile, but service providers will be able to give improved offerings to their customers and cement those relationships. A strong, agile network is the key to navigating a successful digital future, and service providers should be the strategic partners to help enterprises get there.
