How Service Providers are Outpacing Enterprises in SDN Deployments
How Service Providers are Outpacing Enterprises in SDN Deployments
by Steve Harriman, VP of Marketing - July 15, 2014
Service providers are well ahead of enterprises in SDN deployments. The numbers confirm this according to Jim Duffy in his Network World article “Enterprise SDN use lags service providers.” ACG Research estimates that sales of SDN products for live service provider deployments will reach $15.6 billion by 2018, while those that may become live will reach $29.5 billion. Use of production SDNs by enterprises and cloud/service provider data centers will be a fraction of that according to Infonetics Research: $3.1 billion by 2017.
Why are service providers so far ahead of enterprises? To paraphrase the oft-used political aphorism: It’s the business model, stupid. Duffy said it best in his article: “To service providers, the network is the business. To enterprises, the network enables or supports its core business.”
To a network service provider, technology is the revenue generator in a competitive market. Better solutions and better technology lead to lower costs (and more profits), and/or competitive differentiation.
Of course, competitive differentiators tend to become commodities over time, and we’ve seen that happen repeatedly Continue reading



