Who Are the Top Contenders in Gartner’s Latest SD-WAN Rankings?

October 16, 2024

The SD-WAN market is entering a new phase, marked by intensified competition and a focus on security for platform differentiation. Gartner’s latest rankings provide an insightful snapshot of the major players in this space, detailing their strengths, challenges, and market strategies.

The Leaders in the SD-WAN Market

Fortinet: Robust Channels and Customer Experience

Fortinet stands out as a leader in the SD-WAN market, capturing a significant share with its 40,000 enterprise customers. This impressive foothold can be attributed in large part to the company’s solid channel partnerships, competitive pricing, and excellent customer service. These factors collectively reinforce Fortinet’s prominence in the industry, ensuring a broad market reach and a loyal customer base. According to Gartner, Fortinet’s product strategy is robust, characterized by a comprehensive suite of offerings that cater to a wide range of enterprise needs. However, despite these strong points, the company must address some potential pitfalls to maintain its leadership.

One major area where Fortinet needs improvement is in handling complex enterprise WAN configurations. The intricacies of modern enterprise networks demand highly sophisticated solutions that can manage multiple layers of network traffic, security protocols, and data routing. Additionally, Fortinet’s limited third-party secure service edge (SSE) integrations could be a drawback for some enterprises that require seamless integration with various security providers. As the SD-WAN market continues to mature, the ability to offer versatile and integrative solutions will be crucial for sustaining growth and customer satisfaction.

Cisco: Dual-Path Strategy and Market Visibility

Cisco has fortified its position in the SD-WAN market, effectively serving around 55,000 enterprises through its dual-path strategy involving the Catalyst and Meraki product lines. This dual approach allows Cisco to meet diverse market demands, targeting advanced SD-WAN deployments with its Catalyst line while offering a user-friendly experience with Meraki. The versatility of this strategy enhances Cisco’s market visibility and ensures a broad appeal across different industry segments. Gartner highlights the company’s exceptional sales execution and market penetration, which make it one of the most visible and recognized brands in the SD-WAN landscape.

However, despite these strengths, Cisco faces some challenges that may impact its long-term dominance. One notable area of concern is customer service, which has been criticized as below average. In an industry where seamless and responsive customer support is crucial, this could pose a significant disadvantage. Additionally, Cisco’s marketing strategy appears somewhat uncertain, potentially hindering its ability to communicate effectively with prospective customers and maintain its market edge. Addressing these shortcomings will be vital for Cisco to sustain its growth and remain a leader in the fiercely competitive SD-WAN market.

Broadcom: Deep Product Capabilities Amid Integration Concerns

Broadcom has gained substantial traction in the SD-WAN market through its acquisition of VMware’s VeloCloud SD-WAN platform, now serving 21,000 enterprise customers. The integration of VMware’s advanced SD-WAN technology significantly boosts Broadcom’s product capabilities, offering deep and versatile solutions that cater to complex enterprise requirements. Gartner acknowledges these robust product features, which position Broadcom as a formidable player in the SD-WAN landscape. The extensive reach and sophisticated technology of the VeloCloud platform make it an attractive option for enterprises seeking comprehensive SD-WAN solutions.

Despite these advantages, the future integration of VMware poses some concerns for Broadcom. Gartner has highlighted potential issues related to customer experience during this transition period, as consolidating two large entities often involves operational hurdles and alignment challenges. The uncertainty surrounding Broadcom’s post-VMware integration plans could affect customer confidence and market stability. This period of transition will be critical, as the company must ensure that it maintains product quality and customer satisfaction while effectively integrating VMware’s technologies and market strategies.

Challengers and Visionaries: Emerging Stars

Hewlett Packard Enterprise (HPE): Consistent Market Presence

Hewlett Packard Enterprise (HPE) has carved out a stable position in the SD-WAN market, with its Aruba and EdgeConnect platforms serving around 6,000 enterprise customers. Despite experiencing a slight dip, HPE remains in the leadership category due to its consistent market presence and reliable product offerings. Gartner’s assessment reflects HPE’s ability to maintain a steady foothold in the industry, bolstered by a suite of robust SD-WAN solutions that appeal to a diverse range of enterprises. The company’s established reputation and continued innovation contribute to its enduring relevance and competitive edge.

However, the landscape for HPE is set to potentially change dramatically with the pending $14 billion acquisition of Juniper Networks. This significant development could reshape HPE’s market strategy and offerings, introducing new dynamics and synergies. The integration of Juniper’s advanced networking solutions could enhance HPE’s SD-WAN portfolio, offering greater value and functionality to its customers. As this acquisition unfolds, it will be interesting to watch how HPE leverages Juniper’s technologies and expertise to reinforce its position and drive further growth in the SD-WAN market.

Versa Networks: Bifurcated Approach

Versa Networks employs a distinctive bifurcated market approach, serving 20,000 enterprise customers through targeted marketing strategies. This dual-focused tactic allows Versa to effectively address the specific needs of different market segments, enhancing its appeal and penetration. Gartner recognizes the benefits of such a strategy, as it enables Versa to offer tailored solutions that meet varied enterprise requirements, ranging from basic connectivity to advanced security features. This approach underscores Versa’s adaptability and responsiveness to market demands, helping it stand out within a crowded field.

However, the same dual approach that offers flexibility can also lead to potential market confusion. The lack of a clear, unified strategy may result in customers facing difficulties in understanding Versa’s comprehensive offerings and their specific advantages. Gartner cautions that this ambiguity could hinder long-term success, as clarity and coherence in market positioning are essential for sustaining growth and customer confidence. To mitigate this risk, Versa may need to refine its communication strategies, ensuring that its diverse offerings are presented in a straightforward and easily comprehensible manner.

Palo Alto Networks: Balancing Security and Functionality

Palo Alto Networks is another player that utilizes a bifurcated market strategy, serving around 4,000 enterprise customers. This approach presents customers with a choice between strong on-premises security features and enhanced SD-WAN functionality, each with its respective advantages and limitations. Gartner notes that this duality can contribute to market uncertainty, as enterprises may find it challenging to balance their security needs with their networking requirements. Despite these challenges, Palo Alto Networks’ emphasis on forward-thinking security measures remains a significant strength, ensuring that its solutions are well-regarded for their robust protection capabilities.

The company’s ability to balance these two critical aspects—security and networking functionality—will be crucial for its continued success. As the SD-WAN market evolves, enterprises increasingly seek integrated solutions that provide both comprehensive security and seamless network performance. Palo Alto Networks must navigate these demands carefully, ensuring that its offerings deliver the right blend of functionality and protection to meet diverse enterprise needs. Enhancing clarity in its market strategy and refining its product offerings will be essential steps in reinforcing its position and driving future growth.

Niche Players and Unique Vendors

Huawei: The Sole Challenger

Huawei stands alone in the “challengers” quadrant, reflecting both its potential and the specific areas it needs to address to move into the leaders’ space. Gartner’s recognition of Huawei as a challenger points to its solid base and significant market capabilities. The company has demonstrated considerable growth and innovative product development, making strides in the SD-WAN market. However, to advance further, Huawei must address some key strategic areas that could enhance its competitive position and market influence.

To transition into the leaders’ category, Huawei will need to focus on refining its strategic initiatives and expanding its market penetration. Addressing specific customer needs more effectively and enhancing its overall service offerings could drive greater adoption and customer satisfaction. As the SD-WAN market continues to evolve, Huawei’s ability to adapt and innovate will be critical for its success. Leveraging its technological strengths and improving operational efficiencies will be vital steps towards achieving a more prominent market position.

Juniper Networks: Visionary Insights

Juniper Networks holds a distinctive place as the sole visionary in Gartner’s SD-WAN rankings. Known for its innovative capabilities, Juniper showcases forward-thinking approaches that set it apart from its competitors. Gartner’s assessment highlights Juniper’s potential for future growth, driven by its emphasis on pioneering solutions that address emerging market trends and enterprise needs. Despite this, the company has yet to capture a significant market share, indicating that there is room for growth and greater market penetration.

Juniper’s visionary status suggests considerable potential for transformative impact within the SD-WAN space. By continuing to innovate and refine its product offerings, Juniper can enhance its appeal to a broader range of enterprises. Strategic partnerships and targeted marketing efforts could further bolster its market position, enabling it to convert its visionary insights into tangible market success. As the industry landscape evolves, Juniper’s ability to stay ahead of the curve and anticipate future needs will be crucial for its sustained growth and market relevance.

Specialized Offerings: Ericsson/Cradlepoint, Peplink, and Barracuda

Ericsson/Cradlepoint, Peplink, and Barracuda are recognized for their specialized offerings within the SD-WAN market. These vendors cater to distinct market segments, providing tailored solutions that address specific customer needs. Although they may have limited overall impact on the broader SD-WAN landscape according to Gartner, their unique product offerings serve targeted niches effectively. The specialized nature of their solutions enables these vendors to carve out dedicated customer bases, delivering high-value services that meet particular requirements.

Each of these vendors brings unique strengths to the table, contributing to the diversity and dynamism of the SD-WAN market. Ericsson/Cradlepoint is notable for its focus on wireless WAN solutions, providing robust connectivity options for enterprises with demanding mobile and remote work needs. Peplink’s emphasis on seamless connectivity and high network performance makes it a preferred choice for industries requiring reliable and resilient network services. Barracuda, with its strong security heritage, offers SD-WAN solutions that prioritize comprehensive protection and threat management. These specialized vendors play a crucial role in the broader ecosystem, addressing niche demands and enhancing the overall market landscape.

Market Evolution and Trend Highlights

The Drive Towards Single-Vendor SASE

The SD-WAN market, while considered mature, continues to show substantial growth potential. Gartner notes a significant trend towards integrated solutions, projecting that by 2027, 65% of new SD-WAN purchases will be part of a single-vendor Secure Access Service Edge (SASE) offering. This shift is driven by the growing preference for unified solutions that simplify implementation and management processes. Enterprises are increasingly looking for comprehensive offerings that integrate networking and security functions, reducing complexity and enhancing operational efficiency. Gartner’s forecast underscores this trend, highlighting the industry’s move towards more streamlined and all-encompassing solutions.

The rise of single-vendor SASE solutions represents a significant evolution in the SD-WAN market. As enterprises demand more integrated and cohesive services, vendors that can offer these holistic solutions are likely to gain a competitive edge. The ability to provide seamless, end-to-end services that combine connectivity, security, and performance management is becoming a crucial differentiator. Vendors that can effectively deliver on this front will be well-positioned to capture a larger share of the market, driving the next phase of growth and innovation in the SD-WAN space.

Increasing Interest in Integrated Solutions

The SD-WAN market is experiencing a transformative phase, characterized by increased competition and a heightened emphasis on security, which is becoming a crucial factor for platform differentiation. This evolution is pushing companies to innovate and refine their offerings to stay competitive. According to Gartner’s latest report, the landscape of key players in the SD-WAN field is clearly mapped out, offering a comprehensive overview of each competitor’s strengths, weaknesses, and strategic approaches to the market.

The report delves into how companies are leveraging new technologies, enhancing security features, and implementing advanced functionalities to distinguish themselves. As organizations increasingly demand more secure and reliable connections, vendors are responding by prioritizing security enhancements and comprehensive solution packages. Gartner’s insights not only highlight the current state of the market but also provide foresight into future trends and potential areas for growth. The competitive dynamics laid out in the report will be instrumental for businesses looking to make informed decisions about their SD-WAN strategies.

Subscribe to our weekly news digest.

Join now and become a part of our fast-growing community.

Invalid Email Address
Thanks for Subscribing!
We'll be sending you our best soon!
Something went wrong, please try again later