This IDC Market Perspective provides an overview of SD-WAN and SD-WAN managed services in Asia/Pacific through a survey of the needs of technology buyers. The SD-WAN ecosystem is quite complex with significant differentiation existing between vendors. In addition, mergers and acquisitions (M&As) have been prominent in the pure-play SD-WAN space. Going forward, partnerships — particularly in cloud, APIs, vertical offerings, and agile — will be crucial as large cloud vendors, communication service providers (comm. SPs), and systems integrators bring value to these offerings. This will also enable the ecosystem to mature toward SD-WAN managed services. Some countries in Asia/Pacific (excluding Japan) (APEJ) have a higher adoption of SD-WAN managed services, with their reliance on comm. SPs higher than on pure-play vendors, whereas for other countries, dependence between the two is more balanced.
"Even though the relative price differential between MPLS and broadband rates in APEJ is higher than that of the United States or Western Europe, there are other factors such as resiliency of broadband connectivity, sector/vertical dependence of a country, end-user business & IT KPIs, security compliance, and others, for considering an SD-WAN solution," says Yash Jethani, research manager, Telco & IoT Insights, IDC Asia/Pacific. "Hence, the APEJ market is particularly interesting to watch as comm. SPs push for managed services baked into their SD-WAN offerings to move away from traditional connectivity offerings."