Gartner: Is SD-WAN still necessary in today’s IT landscape

Despite claims from some quarters that the software defined wide area network (SD-WAN) is becoming obsolete, Gartner's latest research suggests otherwise. SD-WAN remains relevant for most enterprises but is evolving as market demands shift and is increasingly being incorporated into broader security offerings like next-generation firewalls (NGFW) or Secure Access Service Edge (SASE). 

One of the key reasons why questions are being raised on the relevance and necessity of SD-WAN is the shift towards hybrid work models and the rise of what is termed "coffee shop networking." As organisations adapt to a post-Covid-19 world, the traditional office-centric work model is giving way to more flexible, remote, hybrid and work-from-anywhere arrangements. Employees are increasingly working from various locations, including homes, coffee shops, and co-working spaces.  

This trend demands a networking solution that is lightweight, cost-effective, and capable of providing reliable connectivity with minimal infrastructure. SD-WAN in its lighter-weight forms, fits this need, but in some cases of remote and small branches there is little need for SD-WAN at all.

The continued relevance and integration of SD-WAN 

Traditional SD-WAN products have evolved significantly over the years. Initially, they were designed to optimise end-user access from branch locations to cloud-based applications and other enterprise sites by managing traffic across multiple links and reducing dependence on multiprotocol label switching (MPLS). While these offerings were initially more lightweight and cost-effective, the addition of new functionalities over time has increased their complexity and price.  

Gartner's research indicates the SD-WAN market is expected to grow, driven primarily by integrated security features. Our forecast predicts a compound annual growth rate (CAGR) of 16.8% through 2027, largely attributed to SD-WAN solutions that incorporate security capabilities, an absolute necessity in today's cyber threat landscape.  

The concept of "coffee shop networking" is particularly illustrative of the evolving requirements for enterprise networking solutions, with coffee shop networking driving some customers to wonder if they need SD-WAN at all. With the increase in remote work, there's a growing need for lighter-weight and lower-cost SD-WAN solutions for branch offices, where users need simple, efficient connectivity.  

The future of SD-WAN and security integration 

The integration of SD-WAN and security has evolved to deliver simplicity, address equipment sprawl and drive cost synergies. Traditional stand-alone SD-WAN solutions are evolving, as modern demands necessitate the need for integrated security features, such as those found in next-generation firewalls (NGFW) or secure access service edge (SASE) technology. This shift towards a unified approach not only addresses the dynamic requirements of distributed work environments but also more complicated environments by ensuring high availability, application performance, and simplified connectivity from enterprise branches to public cloud and other enterprise locations. Consequently, while the landscape of SD-WAN is changing, its integration with security functionality is now almost essential to meet contemporary networking and security needs effectively. 

SD-WAN is far from dead; it’s still needed in most cases, such as to deliver high availability, ensure the performance of mission-critical applications, manage traffic effectively, and support hybrid infrastructures where applications are delivered both on-premises and from the cloud. However, it has morphed, becoming increasingly delivered as part of a broader security offering such as next-generation firewall (NGFW) or SASE. SD-WAN is morphing in part because of changes in working including coffee shop networking to a lighter-weight offering, but, in some cases, SD-WAN may not be needed either as remote-only users rarely need SD-WAN functionality. The majority of the market, however, will continue to require SD-WAN functionality, whether integrated as part of an NGFW or as part of a single vendor or dual vendor SASE solution and as a result, SD-WAN functionality remains relevant for organisations. 

Jonathan Forest is a VP Analyst at Gartner focused on infrastructure and operations (I&O) with respect to enterprise networking. Gartner analysts will further explore I&O trends at the Gartner IT Symposium/Xpo, taking place from 4-7 November in Barcelona, Spain.