Growing use of software-defined networking enables multi-cloud connections, better remote user experience, ISG Provider Lens report says
Cloud migration and the increasing importance of user experience have led enterprises in the Nordics to invest more in software-defined networking (SDN) over the past few years, according to a new research report published by Information Services Group, a leading global technology research and advisory firm.
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“This will continue to shape their approach to networking in the coming years, and in many cases, service providers will be central to their success.”
The 2022 ISG Provider Lens Network — Software Defined Solutions and Services report for the Nordics finds more companies in the region have been carrying out large-scale digitalization and cloud migration, leading many to adopt a software-defined-everything (SDx) approach. In some cases, this has been triggered by changes following mergers and acquisitions. Companies are also transforming their networks to ensure high-speed, low-latency connections to the growing number of remote workers, because poor application performance directly affects employee productivity.
“Cloud connectivity is becoming strategically important to Nordic enterprises,” said Dieter Thompson, president, ISG Network Advisory Services. “This will continue to shape their approach to networking in the coming years, and in many cases, service providers will be central to their success.”
Many Nordic enterprises have assembled multi-cloud environments, leading networking service providers to develop offerings that help customers establish connections between clouds. Software-defined cloud interconnect technology has been gaining traction and is expected to show double-digit growth over the next two years, ISG says.
SD-WAN technology, which revolutionized branch networking by automating and standardizing hybrid connectivity at branch offices, is becoming increasingly cloud-centric as companies move toward SaaS applications, the report says. SD-WAN automation helps in managing multiprotocol label switching (MPLS) by routing data along the best path.
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The small and medium-sized business segment in the Nordics, one of the most prominent in the world, often takes the lead in creating new demand for networking services and creating new opportunities for the SDN industry, ISG says. The rapid growth of IoT, which increasingly requires end-to-end links for data analytics in edge devices, is also driving networking demand. Service providers are preparing their customers for wider public 5G services in which a portion of radio spectrum can be allocated to enterprises.
The report also examines other SDN trends in the Nordics, including the growth of managed SD-WANs and the increasing importance of network security at the edge.
The 2022 ISG Provider Lens™ Network — Software Defined Solutions and Services report for the Nordics evaluates the capabilities of 49 providers across five quadrants: Managed SD-WAN Services, SDN Transformation Services (Consulting and Implementation), Enterprise Networks Technology and Service Suppliers, Edge Technologies and Services, and Secure Access Service Edge (SASE).
The report names Deutsche Telekom, HCL, Orange Business Services, Tech Mahindra and Wipro as Leaders in all five quadrants. It names BT and Telenor as Leaders in three quadrants each. Arelion, Cisco, Nokia, Tele2, Verizon and VMware are named as Leaders in two quadrants each, and Aryaka, Cato Networks, HPE Aruba, TCS and Versa are named as Leaders in one quadrant each.
In addition, GTT is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in three quadrants. TCS is named as a Rising Star in two quadrants.
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