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New Business Challenges Lead German Companies to SDN

Most German enterprises are migrating toward software-defined networking (SDN) as part of digital transformations to address a wave of new business challenges, according to a new research report published  by Information services. a leading global technology research and advisory firm.

The 2022 ISG Provider Lens Network — Software Defined Solutions and Services report for Germany finds the COVID-19 pandemic, environmental regulations, rising cybersecurity threats and energy price increases triggered by the war in Ukraine have caused major changes for German business, forcing companies to modernize their technology and business operations. Because networks tie together all elements of enterprises and affect their customers and partners, networking is a major focus of transformation.

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“Network modernization is a key part of transforming a business, and it involves changing not just technologies but processes and management practices in a cost-effective manner,” said Yadu Singh, EMEA lead, Digital Platforms and Solutions, for ISG. “In Germany, there are many provider companies with the technology and enterprise knowledge to guide companies through this. However, choosing the right partner is critical.”

German companies want to improve network integration and automation, and they are adopting SDN partly for the ability to manage and orchestrate network resources and processes from a single screen, the report says. Many are also migrating IT and network operations to the cloud, and SDN helps them achieve this by reducing complexity and risk.

Network security has become a growing issue for German enterprises, and this has helped drive decisions to implement SDN technologies, ISG says. Enterprises provisioning cloud-based and hybrid networks increasingly expect full security from core to edge. Many are piloting and deploying advanced SD-WAN and secure access service edge (SASE) for more comprehensive protection.

“A fully integrated SASE environment is key to many corporate SDN strategies,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “In Germany, we expect strong growth in this area.”

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However, German enterprises are not adopting fully managed SDN services as quickly as those in the U.S. and the Asia Pacific region, the report says. A significant percentage of German companies prefer to manage the entire network solution or co-manage it with a provider.

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The report also examines other SDN trends in the German market, including the role of SDN in the adoption of intelligent edge, edge computing and new technologies such as AI and machine learning.

The 2022 ISG Provider Lens™ Network — Software Defined Solutions and Services report for Germany evaluates the capabilities of 40 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 as a Leader in all five quadrants. It names Orange Business Services and Vodafone as Leaders in four quadrants each and Computacenter, Extreme Networks and Wipro as Leaders in three quadrants each. BT, Colt, NTT and Verizon are named as Leaders in two quadrants each. Apcela, Axians, CANCOM, Cisco, Damovo, GTT, IBM, Juniper Networks, Logicalis and Riedel Networks are named as Leaders in one quadrant each.

In addition, Axians, Infosys and Wipro are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

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