Study: U.S. Enterprises Rapidly Adopting SDN to Move Networks to the Cloud

Enterprises in the U.S. are rapidly adopting software-defined networking (SDN) and network function virtualization technologies as they focus on moving their IT and network operations to the cloud, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

Many U.S. enterprises are looking to replace multiprotocol label switching (MPLS) and related technologies that still form the backbone of their networks. U.S. enterprises are working with networking services providers to help them migrate to SDN-related technologies and, ultimately, to move network operations to the cloud, the ISG Provider Lens report says.

“SDN can help enterprises by reducing complexity and by enabling smoother migrations to a single or a multi-cloud environment,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “SDN and related technologies are evolving quickly and rapidly penetrating the U.S. enterprise market.”

SDN technologies also can help enterprises manage and use new technologies such as intent-based networks, artificial intelligence, rapid hot spot provisioning and self-healing networks, the report says. These technologies, the report notes, require the flexibility and features embedded in SDN technologies to live up to their full potential.

The move to SDN technologies also is driven by enterprises’ desire to improve the integration, automation orchestration and management of network resources and processes, the report adds. Enterprises considering SDN-related technologies want to seamlessly add applications and network resources to meet business and user goals more efficiently and securely.

In addition, U.S. enterprises want the ability to respond quickly to customer inquiries and rapidly provide new services through SDN technologies. This would help improve customer experience, boost sales and retain customers.

Network Utilization Efficiency, Reducing Costs

U.S. enterprises also see SDN-related technologies as a way to improve network utilization efficiency while reducing costs, the ISG Provider Lens report says. SDN tools allow companies, with little or no human intervention, to route social media and other noncritical traffic over lower-cost connections.

“SDN can help enterprises by reducing complexity and by enabling smoother migrations to a single or a multi-cloud environment,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research.

The report also sees the adoption of SD-WAN technologies as a way for customers to move the network control layer to the cloud. As a result, the SD-WAN can be managed in real-time through a one-touch, single-pane-of-glass reporting tool. This allows for integration with other applications and IT services.

Many telecommunications services providers, network services providers and systems integrators in the U.S. have developed a wide-ranging SDN portfolio to respond to the growing demand, the ISG Provider Lens report adds. Some providers offer partial or function-specific solutions, with others providing complete end-to-end SDN solutions. In some cases, service providers are involved in SDN pilot projects with plans to convert them to production-level deployments.

The 2020 ISG Provider Lens Network – Software Defined Solutions and Services Partners Report for the U.S. evaluates the capabilities of 50 providers across six quadrants: Managed WAN Services, Managed SD-WAN Services, SDN Transformation Services (Consulting and Implementation), SD-WAN Equipment and Service Supplies (DIY), Network Technologies Suppliers (Core to Mobile) and Mobile Network (4G/5G) Additional (Non-Core) Services. 

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