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U.S. Enterprises Flock to SDN Technologies to Move Networks to the Cloud

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According to the new 2020 ISG Provider Lens Network Report, U.S. enterprises are increasingly adopting software-defined networking (SDN) and network function virtualization technologies to enhance cloud integration. The report notes that firms are replacing traditional MPLS technologies and embracing SDN for its ability to simplify operations and improve efficiency. It highlights leaders in the field, naming AT&T, Verizon, and IBM as top performers. Additionally, SD-WAN technologies are emerging to facilitate real-time management of network resources, driving demand for comprehensive SDN solutions across the U.S. market.

Positive
  • Rapid adoption of SDN and network function virtualization technologies improving cloud integration.
  • SDN enhances operational efficiency and reduces complexity in network management.
  • Leaders in the SDN field include AT&T, Verizon, and IBM.
Negative
  • None.

STAMFORD, Conn., July 14, 2020 (GLOBE NEWSWIRE) -- Enterprises in the U.S. are rapidly adopting software-defined networking 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.

The 2020 ISG Provider LensNetwork – Software Defined Solutions and Services Partners Report for the U.S. finds many 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 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 says. 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, the report adds. This helps improve customer experience, boost sales and retain customers.

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

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 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 LensNetwork – 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.

The report names AT&T and Verizon as leaders in all six quadrants and IBM as a leader in five. Orange Business Services is named a leader in four quadrants, and CenturyLink, Juniper Networks and Sprint, now part of T-Mobile, are named as leaders in three. Apcela, Cisco and NTT are named leaders in two quadrants, and Cato Networks, Extreme Networks, GTT, HCL, PCCW and VMware are all named leaders in one.

Customized versions of the report are available from Apcela and Sprint, now part of T-Mobile.

The 2020 ISG Provider LensNetwork – Software Defined Solutions and Services Partners Report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe and Latin America, as well as in the U.S., Germany, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

The series is a complement to the ISG Provider Lens Archetype reports, which offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

Starting this year, each ISG Provider Lens™ study will include a Global Summary to help enterprise subscribers better understand provider capabilities across all geographic markets covered by that study. All ISG Provider Lens™ reports also will now include an Enterprise Context feature to help executives quickly identify key insights related to their roles and responsibilities.

About ISG 

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

# # #

Will Thoretz
Information Services Group, Inc. 
+1 203 517 3119
Will.Thoretz@isg-one.com

Jim Baptiste
Matter Communications for ISG
+1 978 518 4527
jbaptiste@matternow.com

FAQ

What is the main finding of the 2020 ISG Provider Lens Report regarding SDN technologies for III?

The report reveals that U.S. enterprises are increasingly adopting SDN technologies to improve cloud integration and operational efficiency.

Who are the leaders in the SDN market according to the 2020 ISG Provider Lens Report for III?

The report identifies AT&T, Verizon, and IBM as leaders across multiple quadrants in the SDN market.

How does SDN technology benefit U.S. enterprises as per the 2020 ISG report?

SDN technology helps enterprises by reducing complexity, facilitating smoother cloud migrations, and improving network management efficiency.

What role do SD-WAN technologies play according to the 2020 ISG Provider Lens Report for III?

SD-WAN technologies are key for moving network control to the cloud, allowing real-time management through a single reporting tool.

What new technologies are enterprises looking to manage through SDN as per the ISG report?

Enterprises are looking to manage intent-based networks, artificial intelligence, and self-healing networks through SDN technologies.

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