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Feb 2016 - Industry Development and Models - Doc # US41043816

Communication Service Provider Adoption of SD-WAN Technology and Its Impact to MPLS VPN Services

Author: Nav Chander
Abstract

This IDC study examines the potential impact of emerging SD-WAN technologies and services on existing CSP managed enterprise service strategies and which alternative business models may evolve in the next one to three years.

"SD-WAN technology and innovative SD-WAN overlay solutions may become the CSPs' worst nightmare and possibly disrupt high-margin managed VPN service revenue, similar to the OTT phenomenon that has occurred in the consumer markets. CSPs will need to take an aggressive assessment of these SD-WAN alternatives as part of their hybrid WAN and cloud-based managed services strategy." — Nav Chander, research manager, Enterprise Telecom Services at IDC

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