ISG Provider Lens™ Network - Software Defined Solutions and Services - Managed (SD) WAN Services - Singapore & Malaysia 2022

Providers witnessed a rise in security requirements.

This ISG Provider Lens™ study examines a range of network offerings related to software-defined networking (SDN) in Singapore and Malaysia. These include managed SD-WAN and associated core and mobility service offerings, SDN transformation services and the fastemerging areas of secure access service edge (SASE) and edge technologies.

Networks, SDN and related services encompass a range of business areas, processes and methods. They are also closely tied to the overall digital business transformation trends among enterprises in Singapore and Malaysia, as well as globally.

In Singapore and Malaysia, the borders between WAN, LAN, WLAN and cloud connectivity are beginning to blur. Over the next five to ten years, software-defined technology and orchestration will enable end-to-end workflow monitoring and ensure segmentation continuity from the edge to the applications. Future enterprises must be hyper connected and data driven, as well as multicloud enabled and end-to-end secured. This creates significant opportunities for a range of telcos, managed service providers (MSPs) and overseas MSPs in Singapore and Malaysia.

Improving integration and automation

Singapore- and Malaysia-based enterprises are focusing on improving the integration, automation, orchestration and management of their network resources and processes. This has evolved to encompass SDN in a wider sense and is being driven by enterprises’ desire to seamlessly add applications and network resources to meet business and user goals more efficiently and securely without the need to create silos or depend on vendors. During the COVID-19 pandemic, this has been of high importance, especially in areas concerning supply chain and logistics, as well as customer reach and mobile workforce/remote working.

Managed WAN services as an approach to outsourcing IT functions

Enterprises are also purchasing managed WAN services along with consulting and professional services to assess, design, implement and operate their networks. Managed SD-WAN provides the benefits of SDN technology over traditional hardware-based networking. It is an overlay architecture that provides a networking foundation that is much easier to manage than legacy WANs; it essentially moves the control layer to the cloud and, in the process, centralizes and simplifies network management. This overlay design abstracts software from hardware, enabling network virtualization and making the network more elastic. Providers have been increasingly active in offering managed services, encompassing complete managed SD-WAN solutions, including hybrid MPLS/IP or MPLS/SDN, as white-label services. Telco providers and integrators support their customers with these solutions as part of broader strategic implementations.

Digital business transformation and new innovations require the flexibility and abilities of SDN to be fully utilized and drive solutions to their full potential. These include intent-based networks, AI and machine-learning-driven solutions, rapid hotspot provisioning, and intelligent edge and edge computing. These factors have been driving significant changes in networks and their operations over the past five years.

Security continuing to be a challenge across Asia

Like all other regions covered in this study, markets in Singapore and Malaysia are witnessing a demand for increased security across networks, including cloudbased networks. Network security has become a major concern across business units and enterprises, given the changes in modern networks and the expectations for full security from core to edge in all networks enabled or simplified by SDN – a vital component for provisioning cloudbased and hybrid networks. Integrated secure enterprise networks (ISEN), also defined as SASE, are increasingly deployed with advanced security aspects across all areas of modern integrated networks.

Higher inclusion of edge offerings such as IoT and SASE

Edge technologies and computing are current trends in Asia for IoT and industrial IoT (IIoT). Localized processing of data enables improvements in security and privacy, as any breach can be managed locally and not passed onto the WAN or cloud and then back to the central enterprise. In IoT edge computing and networking, data from various connected devices of the IoT ecosystem are collected in a local device, analyzed on the network and then transferred to the central data center or cloud. As the number of connected devices increases exponentially, the data volume generated has grown multifold. Interim processing is thus required to ensure cost reduction and increased efficiency, driving the need for efficient and software-driven edge capability networks and connectivity capabilities.

Edge computing is still a nascent space and is yet to reach its full potential. Market demand in Singapore and Malaysia is expected to increase considerably over the next 12-24 months in line with application performance. This will depend on the uptake of IoT solutions with compute and data requirements. Key challenges that still need to be addressed by providers in these regions include application formats, operational efficiency, resilience and security.

Focus on strengthening competitive market strategy

To keep pace with the increased adoption of SDN and associated strategies, technologies, methods and processes, providers should align their vision to the future state. They should create a business case for change and a roadmap to get there while defining, planning and leveraging leading technologies to transform enterprise network operations and customer experiences. Other requirements include streamlining processes to ensure lasting change, demonstrating in-depth knowledge of both the enterprise and its industry, and applying the requisite technologies and solution capabilities.

Transformation services helping enterprises to formulate a strategy

Service providers are helping clients enhance their performance through SDN. Advisors analyze an enterprise’s business structure and intents, network technologies and infrastructure, processes, methods, people and organization to both strengthen its short-term performance and plan the transformation of the network to deliver and maintain sustainable long-term improvement.

From initial advisory to full or partial solution implementation and operations, transformation service providers in Singapore and Malaysia have been gaining maturity by leveraging successful use cases, integrated designs, predefined processes and technologies. They also advise on suitable partner products and services, as well as implementation possibilities. Providers have been active in directly selling SD-WAN advisory, planning, transition and implementation solutions to enterprises for their DIY (enterprises’ own and non-managed) or co-managed deployments. They are also extending their partnership to licensed telcos/service providers for their delivery packages in this space across Asia.

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