SD-WAN trends to watch out for in 2021

Software-defined WAN remains a key technology for improving UX, enhancing security and providing connectivity to cloud-based applications. Below, we look at the SD-WAN trends to watch out for in 2021.

As SD-WAN matures, its scope expands to provide remote access options, support IoT connectivity, link to Secure Access Service Edge (SASE) architectures and offer software-defined branch office (SD-Branch) functionality. It continues to improve in its ability to link to leading IaaS and SaaS applications and in general management and orchestration capabilities, specifically cloud-based intelligence, automation, ease of installation and troubleshooting.

SD-WAN in 2020

SD-WAN revenues continued to grow in 2020, but growth was slowed by the effects of the pandemic. Some organisations have slowed IT investments, especially in branches that currently do not have many, if any, employees coming into the office. A significant number of branches are represented by verticals that were hit hard by the pandemic, including hospitality, travel, retail and restaurants. This will also affect some organisations’ plans to upgrade branch office IT with SD-WAN.

The SD-WAN market continued to consolidate in 2020, with HPE acquiring Silver Peak and Palo Alto Networks buying CloudGenix. We are now in the market phase where large networking, IT and security vendors provide the vast majority of SD-WAN technology.

SD-WAN trends to watch out for in 2021

Here are seven key areas of SD-WAN development that enterprise networking teams need to consider in 2021.

1. Integrated remote access is now a requirement

Developments in 2020 have shown that most knowledge workers can work productively at home. In the future, tens of millions of workers are expected to continue to work remotely for at least half of the working week, to eliminate their daily commute, better fit their schedules or actually get the job done.

Many IT organisations are now prioritising the need to provide secure and optimised access for these employees. Current VPN technology is not a good long-term strategy. IT organisations are looking for remote connectivity options that are integrated with ongoing security, such as SASE architectures.

SD-WAN offers comprehensive, yet costly, technology to address the reliability, latency and performance challenges of the home office. It also provides the security to prevent malware and phishing attacks that can lead to the loss of sensitive data. Many SD-WAN providers are incorporating Zero-Trust Network Access —ZTNA— to further enhance their remote access capabilities.

2. SD-WAN meets SASE

The term SASE, which denotes the convergence of network and security functionality in the cloud, was all the rage in 2020. Dozens of network and security vendors, including most of the major SD-WAN vendors, now claim to offer SASE functionality.

At this point, SASE is more of a future architecture than a product, and most existing offerings are deficient in some aspects of the long list of SASE features. Most IT and security organisations continue to rely on their existing strategy of layering a range of security products, for example, next-generation firewall, application delivery controller, secure web gateway, Cloud Access Security Broker —CASB—, identity, Security Information and Event Management —SIEM— and ZTNA to provide network, application and data protection.

By 2021, SD-WAN vendors will continue to enhance and expand their network security offerings to include remote access, ZTNA, CASB and SIEM functionality. They will also improve their ability to establish uniform security policies across remote connectivity, branch offices, LAN and WAN access. These offerings are likely to add to, rather than replace, installed network security strategies, especially in larger organisations.

3. Growth of the SD-Branch

The SD-Branch simplifies network operations by consolidating WAN connectivity, i.e. SD-WAN and routing, with network security and LAN/Wi-Fi into a unified platform that is easy to deploy and manage.

Some SD-WAN vendors have been aggressive in investing in SD-Branch offices, including HPE Aruba and Fortinet, while others have taken a wait-and-see approach. As SD-WAN vendors continue to innovate their platforms, they will increasingly add SD branch office capabilities to their offerings. SD-Branch makes significant economic sense as an all-in-one option for branch operations. The SD-Branch market is expected to grow from several hundred million dollars in 2021 to several billion dollars by 2025.

4. 5G becomes a viable WAN link

5G networks now offer connectivity speeds on par with many broadband internet services. They are easy to provision and enable rapid deployment of new branches. During 2021, organisations will increasingly use 5G as one of the circuits for SD-WAN connectivity for backup and reliability, at a minimum. As 5G competition increases, the costs of unlimited data plans will fall, making 5G WAN connections even more attractive.

5. Automation and Artificial Intelligence make an impression

SD-WAN vendors have been talking about how AI and machine learning will automate their networks, but actual implementations have been disappointing. During 2021, vendors will begin to deliver on their promises of enhanced automation for their SD-WAN products and services. Their goal is to present a unified platform for centralised control of security policies, quality of service, applications, users and devices; give IT operators the ability to ensure end-to-end quality of service; and quickly identify and remediate application slowdowns.

6. Improve multi-cloud connectivity

As more and more applications move to IaaS and SaaS platforms, it is critical for enterprises to provide optimised internet access from the branch office to specific cloud-based services. SD-WAN providers have partnered with leading IaaS providers and some SaaS platforms, such as Microsoft 365, to simplify access and accelerate connectivity.

During 2021, SD-WAN providers will continue to improve the depth of their cloud partnerships by providing more granular access control and improving QoS reliability. As IaaS providers build local points of presence as part of their edge computing strategies, SD-WAN providers will offer traffic management to ensure traffic flows to the best PoP to ensure consistent QoS.

7. Growth of managed services

The first wave of SD-WAN adoption was driven by leading-edge enterprises implementing the technology with their internal IT teams. The second wave of adoption will be bolstered by the popularity of SD-WAN sold as a managed service.

Managed network services are a popular method for IT organisations to outsource the challenges of providing connectivity to their branch offices and data centres. Implementing and integrating SD-WAN remains complex, especially for SMBs and those adopting a lean IT philosophy. SD-WAN delivered as a managed service removes many implementation barriers and fits well with an IT outsourcing strategy.