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SD-WAN Survey: Nearly 3 in 4 Enterprises Willing to Replace MPLS

August 2, 2016 By Steve Senne in

Nearly four in 10 enterprise-scale businesses will allocate most of their fiscal 2016 IT budgets to network solutions, according to a new SD-WAN survey from software-defined WAN specialist Talari Networks.

Enhancing reliability of network communications by reducing latency, dropped calls, fail-overs and the like was the primary goal for enterprise businesses SD-WAN investments, Talahari highlights in a news release.

SurveyGizmo surveyed more than 400 IT professionals employed in enterprise-scale businesses on Talahari’s behalf to produce the study, in which more than 95 percent of respondents said that a reliable network was critical to the success of their businesses.

SD-WAN Survey Results

“The adoption of reliable enterprise networks has begun to take off at full speed as businesses are tired of their network failing over and over during mission-critical scenarios,” commented Michele Hayes, Talahari VP of marketing and channel. “More and more, we are seeing SD-WAN getting placed in the same budget as the MPLS, WAN OP and Router Replacement budgets.

In addition, nearly 75 percent of respondents said they would be willing to replace their MPLS (Multi-Protocol Label switching) for SD-WAN. ¨IT is starting to make the necessary budget adjustments to acquire this critical technology,” Hayes said.

According to Talahari’s survey results:

  • 90 percent of respondents will increase spending on the network within the next five years
  • Almost 3/4 of respondents would be interested in tearing out and replacing MPLS for SD-WAN
  • Network disruption impacting critical applications is the biggest network pain point (35 percent of respondents)
  • Increasing WAN reliability is the biggest WAN need (32 percent)
  • More than 46 percent of respondents who are currently using an SD-WAN solution have implemented a hybrid approach
  • Compatibility with other WAN technology and efficiently allowing load sharing of traffic across multiple WANs were the biggest two desires for SD-WAN

IDC forecasts global SD-WAN revenues will rise to $6 billion annually by 2020. Consistent security, price and reduced complexity were the three principal attributes enterprise businesses look at when it comes to SD-WANs, according to recent IDC market research.