Software-defined wide area networking (SD-WAN) adoption continues to rapidly increase, and a quarterly IHSMarkit report shows which vendors are leading the market based on revenue.

According to the IHS Markit Data Center Network Equipment Quarterly Market Tracker report, the SD-WAN market, which includes appliance, control, and management software, brought in a total of USD 78 million for the second quarter 2017. This is an increase of 33 percent compared to USD 38.5 million for first quarter of this year.

For the second quarter of 2017, VeloCloud maintained its strong lead with 31 percent of market share. VeloCloud’s revenue of USD 24 million increased 33 percent from the first quarter 2017, the report said.

“Service providers working with VeloCloud can stand up VeloCloud’s SD-WAN control and management software in their own DCs and federate it with the instance running in VeloCloud’s DC, expanding their reach through the gateways that VeloCloud has deployed across the globe. This is an important differentiator for VeloCloud,” the report said.

Viptela holds the No. 2 spot with 12 percent revenue share or USD 9.2 million in revenue. Last quarter the report had its revenue at USD 7.7 million, or 13 percent of market share.

Next is Talari Networks, which maintained its No. 3 spot from first quarter 2017. The SD-WAN vendor’s revenue was USD 4.2 million, or 5 percent market share for the second quarter of 2017, compared to USD 3.8 million, or 6 percent market share in the first quarter, the IHS report said.

For the second quarter 2017, Citrix’s SD-WAN revenue was USD 3.6 million, compared to USD 2.7 million from the first quarter; TELoIP’s revenue was USD 3.4 million, compared to USD 2.7 million in the first quarter; and Cisco’s SD-WAN revenue was USD 3.1 million, compared to USD 2.6 from the first quarter.

It’s also worth noting that there is a discrepancy in the numbers from SDxCentral’s story in June that reported IHS Markits’ first quarter SD-WAN revenue leaders. “Many vendors come to us with new evidence that they didn’t share before, which causes us to revise our numbers,” said IHS Markit Analyst Cliff Grossner. “In such a new market, the risk we take is that sometimes we have large restatements, but these reports are also very informative in helping the market move forward. If we didn’t report on this, then all the vendors might have have stayed silent, and we’d still be guessing. “ – SDX Central 


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