ISG Provider Lens™ Network– Software Defined Solutions and Services - SD-Networks Transformation Services (Consulting and Implementation) - U.S. 2025

SD-networks are synonymous with advanced, secure cloud-enabled enterprise networks across all industries

In the realm of enterprise software-defined networking (SD-networking) solutions and services, organizations face a rapidly evolving landscape shaped by various strategic factors, including the emergence of new technologies, business imperatives and organizational processes. These factors are intricately aligned with global trends, such as enterprise
digitalization, business transformation, the need for enhanced security and the growing momentum toward cloudification. This study, conducted by the ISG Provider Lens™, focuses specifically on SD-networking within the U.S. market. It encompasses a broad spectrum of services and technologies, including managed SD-WAN, transformation services (consulting and advisory), edge technologies (including private enterprise 5G) and secure access service edge (SASE).

Leadership of U.S. in the global SD-WAN market

The U.S. is the largest national consumer of SD-WAN solutions globally. Reports from bodies such as the Global System for Mobile Communications Association (GSMA) indicate that U.S. accounts for more than 35 percent of the global market for SD-WAN capabilities, solutions and services. As a result, U.S. service providers play a pivotal role in shaping the global SD-WAN landscape, both in terms of technological innovation and the number of implementations at scale, helping shape market trends. The market growth in the U.S. is driven by highly advanced offerings from
system integrators (SIs) and network providers, offering attractive consumption models, many based on the as-a-service model. The ongoing shift among SMEs looking to transition from rigid legacy infrastructures adds to the overall near-ubiquitous implementation of SD-WAN within larger enterprises. This shift aligns with global trends in  digitalization and multicloud adoption, which continue to gain traction across almost all industry verticals and cross-industry offerings. Enterprises of all sizes are increasingly seeking cost-efficient, flexible and secure solutions to enhance their competitiveness, ensure business continuity and improve CX, while also aiming to retain the staff essential for continued efficient network operation. SD-WAN technology with cloud aspects, coupled with innovations such as edge computing, private 5G networks and advanced security features, will continue to reinforce the dominant position of the U.S. in the global SD-WAN market through 2025.

The U.S. market has embraced SD-WAN as a critical enabler for enterprise transformation in the modern digital age. The ability to implement SD-WAN as an overlay on existing hardware and infrastructure provides enterprises with a phased approach to upgrading their networks without the need for a complete overhaul. This phased implementation model allows organizations to enhance their networks gradually, optimizing performance and scalability over time. Alternatively, SD-WAN can be implemented rapidly as a replacement to existing networks in a more rip-and-replace approach, with functionality and business SLAs tested against existing networks before the switchover to the new overlay network.

One of the notable features of SD-WAN is its ability to manage diverse network connections, including direct internet access and multiprotocol label switching (MPLS) underlays. This flexibility is particularly valuable for enterprises undertaking cloud migrations, as SD-WAN simplifies and accelerates moving to cloud. By offering seamless cloud onramp capabilities, SD-WAN is positioned as a foundational component of cloudification strategies within enterprise networks. As SD-WAN solutions evolve, many enterprises are incorporating them into broader SASE frameworks. This convergence of networking and advanced security is reshaping enterprise IT strategies, with SD-WAN paired with Security Service Edge (SSE) emerging as a high-growth segment in the managed network services marketplace.

Several key factors are accelerating the transformation of enterprise networks in the U.S. as we move into 2025.

Evolving into a business-responsive and flexible network while simplifying operations

One of the primary goals for enterprises today is enhancing network flexibility to support business needs while simplifying operational management. SD-WAN, particularly when delivered as a service (aaS), provides enterprises with a solution that supports real-time monitoring and management via a centralized, cloud-based control plane. This approach allows for the streamlined addition of network resources and applications, minimizing the need for physical hardware upgrades and significantly reducing complexity.

A key advantage of SD-WAN is the ability to manage networks through a single management interface. This centralization of control simplifies network management and enables enterprises to leverage automation, orchestration and policy-driven network configurations, allowing integration with many existing or new third-party enterprise IT services. By automating network operations,  SD-WAN allows businesses to quickly adapt to changing needs and optimize network performance, making it a cornerstone of modern enterprise IT strategies.

Reducing risks in cloud and multicloud migrations and evolutions

As enterprises increasingly migrate their ICT and network operations to the cloud or evolve existing cloud strategies to new ones, mitigating complexity and reducing risks are critical considerations. SD-networking plays a vital role in facilitating seamless and secure cloud migrations, whether to a single cloud or multicloud environment. By leveraging SDnetworking capabilities, enterprises can ensure smooth transitions with minimal disruption to operations, while maintaining comprehensive visibility and control over their network from core to edge.

The ability of SD-networking to support multicloud environments while reducing complexity is one of the key reasons behind its continued growth and adoption. As organizations continue to embrace cloud-native technologies, SD-networking provides the necessary infrastructure to ensure that data and applications flow securely and efficiently across various cloud platforms.

Strengthening network and enterprise security

In today’s risky digital landscape, network security is a top priority for businesses across all industries. Enterprises are increasingly demanding integrated security solutions that span their entire network infrastructure, from on-premises to cloud, and connect to all other IT security capabilities where feasible to provide a fully integrated and secure attack surface. SD-networking provides a secure foundation for enterprise networks by supporting robust security measures such as encryption, access control and threat intelligence.

The flexibility of SD-WAN ensured its position as the ideal platform for deployment within full SASE solutions. SASE combines SD-WAN with cloud-based security services, including firewalls, secure web gateways and zero trust network access (ZTNA), to protect the network perimeter and secure data transmission. If preferred by enterprises, SD-WAN may be adopted and augmented with SSE, allowing enterprises to achieve comprehensive security without compromising on performance.

Accelerating adoption among SMEs

The adoption of SD-networking is also rising among SMEs in the U.S. Many SMEs are focused on affordable, cloud-based solutions that support distributed workforces and/or premises (such as within the retail sector), which simplify network management and lower costs while increasing security. SD-networking provides SMEs with an efficient means to access robust network and security services without the need for substantial upfront investments in hardware. Major suppliers offer SME-specific solutions through SIs or providers, both at national and local levels. SD-WAN is particularly attractive due to its scalability and consumption-based pricing models, allowing SMEs to achieve enhanced security, performance and connectivity while minimizing operational overhead and capital expenditures.

Supporting innovation with advanced technologies

The ongoing digital business transformation of enterprises, combined with the rapid advancement of technologies such as AI, generative AI (GenAI), ML, automation and intent-based networks, is driving the need for flexible and adaptable network architectures. SD-networking provides the foundational capabilities required to support these technologies by offering enhanced network visibility, real-time management and automation. Consuming these  SDnetworking offerings as managed services from the provider reduces the overhead and complexities of staff  training, as well as overheads associated with the ongoing updates or renewal of software or solution versions. For enterprises looking to leverage innovations such as intelligent edge computing, self-healing networks and 5G connectivity, SD-networking offers a scalable and secure solution that can integrate seamlessly with these next-generation technologies. By fully utilizing SD-networking in a managed or comanaged service model, organizations can unlock the full potential of these advanced technologies, enabling them to remain competitive and agile in an  increasingly competitive and risky digital world.

In summary

The evolving landscape of SD-networking in the U.S. market is driven by a combination of technological  advancements, changing business needs and the ongoing digital business transformation of enterprises. SDWAN, along with complementary solutions such as SASE, SSE and SD-LAN is playing a crucial role in helping businesses navigate the complexities of modern and next-generation networking. As organizations continue to embrace cloud and multicloud environments, SD-networking is foundational in providing the flexibility, security and scalability required to meet the demands of today’s digital-first world.

This study highlights the significant role that SD-networking solutions are playing in reshaping enterprise ICT infrastructures, driving innovation and enabling organizations to measurably achieve their strategic objectives. As the U.S. remains a leader in the global SD-networking market, it will continue to help shape the future of enterprise networking, with advancements in AI, GenAI, automation and edge computing further enhancing the capabilities of SD-networking solutions.

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