Context
Although global WAN underlay connectivity is a mature market, enterprise cloud application adoption, increasing WAN complexity, and emerging AI traffic needs are driving significant market shifts in enterprise demand and NSP offerings.
As enterprises transition from on-premises to cloud applications to support critical operations, their traditional private, hub-and-spoke WANs based on MPLS services become less efficient in managing user data traffic. Also, pricing for private MPLS circuits has flattened or started to increase in many regions, further driving many enterprises to replace private MPLS circuits with DIA and broadband internet alternatives that offer more cost-effective bandwidth. Increasingly, NSPs are adding 5G FWA and LEO satellite services as WAN access options. Yet a significant number of enterprises — concerned about stable performance, data privacy, or compliance — maintain MPLS and other private connections such as Ethernet and wavelength to support on-premises, private applications, and connections between critical locations. These locations include data centers and headquarters locations, which require stronger security and better routing performance.
To better manage this more complex, decentralized network topology, a majority of enterprises have adopted SD-WAN overlay technology. SD-WAN provides dynamic path selection based on business or application policy, routing, centralized orchestration of policy and management of appliances, as well as VPN and zero-touch configuration. However, enterprise reliance on public internet transport infrastructure raises the risk of cyberattacks, prompting the adoption of network security services such as SASE. SASE delivers converged network and security capabilities, including SD-WAN with integrated secure internet access, secure SaaS access, firewall, and zero-trust network access capabilities.
Global NSPs are capitalizing on these trends by positioning themselves as “one-stop shops” for all enterprise WAN service needs. They have expanded their service portfolios beyond underlay circuits to include a range of managed SD-WAN and managed SASE offerings. Although enterprises can and do self-manage SD-WAN and SASE overlay environments, the resulting IT staffing requirements can be a challenge. As a result, an increasing number of enterprises are turning to managed SD-WAN and SASE from a network or managed service provider.
On the offering side, the WAN market is undergoing a profound transformation, with NSPs building out NaaS platforms to deliver more agile and flexible services that emulate cloud commercial and delivery models. Typically, these platforms support near-real-time, on-demand modifications to underlay connectivity services, a choice of cloud connect, and optional network-hosted networking and security functions. Although the depth and breadth of services in most providers’ NaaS platforms are still limited, these capabilities are the cornerstone of NSPs’ strategies to support demanding and variable cloud and AI workload traffic. To that aim, NSPs are preparing these NaaS platforms to integrate with enterprise IT and network estates through APIs and enlarging the ecosystem of destinations and technologies offered. In addition, NSPs continue to invest in data analytics, AI/ML, and automation for service agility, quality, and cost efficiency in network operations. Automated processes tend to speed up tasks such as new circuit provisioning, configuration, and activation. AI and ML upgrades to network monitoring and management systems support faster detection of network traffic anomalies and potential security issues. NSPs are gradually incorporating generative AI and agentic AI into their network processes, although these remain in the early stages of realizing their full potential.
Despite these improvements and NSPs’ overall good levels of service, individual service quality varies within providers’ WAN portfolios. Most importantly, no single network provider can claim ubiquitous global WAN service availability. Where network providers cannot directly supply access circuits, they rely on wholesale partnerships to offer enterprise customers “off-net” connections that are typically more expensive and can include less robust SLAs.
Similarly, in regions where they lack local technicians and equipment distribution resources, global WAN providers often rely on third-party resellers or vendor partners for circuit installation and managed services support. Consequently, enterprise customers may face higher prices, variable support, and weaker availability and response time SLAs.
For this reason, enterprises must evaluate not only individual service quality among providers, but also their capabilities to deliver services to locations in specific regions. This process involves evaluating the trade-off: easier contract management with a single global provider versus potentially higher costs and limited service support in certain regions or markets when relying on a single provider.
Market Definition
Gartner defines global WAN services as POP-based services supporting multiregional corporate networks. These services address enterprise challenges such as hybrid working practices, accelerating digital and cloud transformations and improving enterprise network agility. Providers own and operate their own global core networks and sell directly to the client. Services include transport-centric/unmanaged, managed, co-managed network services, or network as a service via a monthly fixed or usage-based fee model. Core transport services are often complemented by ancillary services like carrier-based cloud interconnect, SD-WAN, SASE or managed services. Services are measurable and consumable through web-based customer interfaces via portals and programmable APIs.
As digital business initiatives increase demands on the enterprise network, the need for reliable bandwidth continues to grow. Growing cloud workloads and the rise in application-specific traffic are the main drivers for increases in bandwidth. Gartner has also observed AI and machine learning (ML) being used in network monitoring, optimization and provisioning to quickly address shifting requirements, such as SaaS and evolving infrastructure as a service (IaaS) and platform as a service (PaaS)-based applications. As a result, SaaS and these associated applications are putting pressure and a level of criticality never before seen to ensure optimal performance and unfailing support.
Enterprises rely on global WAN services to deliver global and regional fixed, wide-area networking connectivity. These services consist of backbone network transport and last-mile access connections to deliver connectivity to individual enterprise sites, such as large or remote/branch office locations. Although these are core to the offer, service providers also offer more transformational capabilities enabled by the underlay service network.
Mandatory Features
Gartner’s view of the market is focused on foundational technologies or approaches delivering on the future needs of end users.
The mandatory features for this market include:
Ability to sell internet services to enterprise customers globally, including dedicated internet access (DIA) and broadband/DSL: DIA should be offered as the provider’s own service, which can be supplemented by DIA from partners. Broadband internet can be a resold solution but must be generally available on a global basis. Internet service points of presence (POPs) are provider-owned network equipment located at the provider’s own facilities, colocation facilities or a third-party facility.
Ability to sell Multiprotocol Label Switching (MPLS) to enterprise customers globally: MPLS should be offered as the provider’s own service, with POPs in either a colocation facility or in the provider’s own buildings (leased or owned real estate). MPLS service POPs are provider-owned network equipment located at the provider’s own facilities, colocation facilities or a third-party facility.
Offer carrier-based cloud interconnect (CBCI): This is a private connection, such as MPLS and/or Ethernet, between a service provider’s network and the point of presence of one or more cloud service providers (CSPs). CBCI requires an interconnection between the network service provider (NSP) and the cloud provider at a provider-owned or third-party location, such as a data center or colocation facility. CBCI also must be available on a global basis to the major cloud providers.
All WAN services must be generally available and offer global coverage (North America, Europe and Asia/Pacific at a minimum). They may not be offered on an individual customer (one-off) basis or only in limited countries and territories. This market segment does not include wholesale or services sold to other providers.
Common Features
The common features for this market include:
Network on demand (NoD): NoD services from NSPs enable enterprises to make near-real-time changes to access/port bandwidth, change the WAN service types delivered over a network port, and add and remove endpoints (for example, connections to cloud providers). This capability is available through provider-supplied customer web portals or APIs.
Advanced portal features: Provider portals offering advanced analytics, including real-time and historical circuit utilization, circuit performance, incident/trouble tickets and SLA compliance. This can also include predictive analytics such as circuit configuration recommendations to improve performance. Other advanced features can include tools allowing customers to configure circuits, change network or security policies, or order new services, as well as a GenAI chat interface allowing customers to request analytics information or request service changes.
Network function virtualization (NFV): NFV is an architecture to deliver multiple network functions — including routing, firewall, SD-WAN, WAN optimization and visibility — as software, called virtual network functions (VNFs). NFV can be implemented on universal customer premises equipment (uCPE) — typically via industry-standard x86 devices used in place of function-specific appliances — and in NFV service nodes located in the provider’s network or in colocation facilities. NFV enables network functions to be activated on demand, deactivated when no longer required and consumed on an as-a-service basis.
Critical Capabilities Definition
Private WAN
This critical capability rates a provider’s ability to deliver private WAN connectivity, including MPLS, Ethernet and wavelength connection types. We assess private networking services that include a provider’s core backbone and associated access circuits for geographic availability and performance, including service-level agreements.
Internet Services
This critical capability rates a provider’s strength in internet services. We assess internet-based connectivity services offered via providers’ IP backbone services, as well as associated access services for performance and geographic availability.
It includes dedicated internet access (DIA), wireline broadband, cellular 4G LTE/5G, and satellite LEO and VSAT options. We assess the quality, geographic availability, service-level agreements and pricing of these services.
NoD/NaaS and Automation
This critical capability rates a provider’s ability to deliver flexible network services that allow customers to make real-time or near-real-time changes to service elements such as access and port bandwidth.
These services also can include the ability to configure and add new endpoint connections, disconnect an endpoint service or change quality of service class. Also, we evaluate the provider’s degree of automation and AI leverage in NoD/NaaS capabilities.
Cloud Connect
This critical capability rates a provider’s cloud connectivity options, including cloud interconnect offerings that provide private connections from the carrier node to the data center of a public cloud service provider, such as Amazon Web Services, Google Cloud Platform and Microsoft Azure.
We assess the provider’s ability to provide these services supporting a wide range of cloud provider services, as well as their geographic reach and service-level agreements.
Managed SD-WAN
This critical capability rates a provider’s strength in managed SD-WAN services globally. We assess the providers’ ability to provide vendor options, managed services, geographic points-of-presence (POP) availability and service-level agreements.
Managed Security
This critical capability rates a provider’s strength in providing managed SASE, which combines SD-WAN with a tightly integrated package of security features that include a next-generation firewall (NGFW), zero-trust network access (ZTNA), secure web gateway (SWG), cloud access security broker (CASB), plus antimalware and intrusion detection/prevention.
We assess providers’ ability to deliver SASE as either a single-vendor or tightly integrated dual-vendor solution, as well as any service-level agreement offered by the provider.
Service Portal, APIs
This critical capability rates a provider’s ability to communicate with the customer, primarily via its customer services web portal or API. We evaluate the portal/API’s ability to provide real-time or near-real-time views of network status, incident management/resolution, billing and usage analytics, as well as value-adds such as ability to make configuration changes, add/change/drop connections, or add new services directly via the portal.
We also assess the use of AI and automation in the digital front-end offered to customers.
Geographic Coverage: North America
This critical capability rates the breadth of the provider’s network, including backbone and access segments in North America, as well as the provider’s network points of presence and other factors such as internet aggregation nodes.
Geographic Coverage: Europe
This critical capability rates the breadth of the provider’s network, including backbone and access segments in Europe, as well as the provider’s network points of presence and other factors such as internet aggregation nodes.
Geographic Coverage: Asia/Pacific
This critical capability rates the breadth of the provider’s network, including backbone and access segments in Asia/Pacific, as well as the provider’s network points of presence and other factors such as internet aggregation nodes.
Use Cases
Complex WAN
This use case is for enterprises that require MPLS, internet, Ethernet, and wavelength connection types with data speeds from sub-10 Mbps to more than 10 Gbps.
We examine how well global NSPs’ WAN services support this use case, including connection options and bandwidth availability by region, as well as strong SLAs for availability, performance, on-time delivery, service assurance, monitoring, and proactive notification. We evaluate providers’ managed services, cloud connectivity options, service portals, APIs, and associated SLAs for these services. In addition, we evaluate NSPs’ level of service automation, which correlates with improved circuit visibility and availability.
Internet-First WAN
This use case is for enterprises requiring primarily internet connectivity, including DIA and fixed or wireless broadband circuits.
We examine how well global NSPs’ internet services support this use case, including the range of connection options, SLAs for dedicated and broadband wired or wireless internet, circuits, managed SD-WAN, security, service portals, and APIs across geographic regions.
Cloud-First WAN
This use case is for enterprises requiring primarily internet cloud connectivity services with some private connectivity to support on-premises and cloud applications.
We examine how well global NSPs’ WAN services support this use case, including cloud connectivity options, service portals, APIs, NaaS and NoD functionality, service automation and associated SLAs.
Security-First WAN
This use case is for enterprises requiring primarily private networking options and also security enhancements, such as DDoS and managed SASE.
We examine how well global NSPs’ WAN services support this use case, including the range of managed firewall and single-vendor and dual-vendor SASE options, strength of managed security service SLAs, cloud onramp capabilities, and strength of customer portals.
Intra-Asia/Pacific Network
This use case is for enterprises that have most of their business locations in countries within Europe.
We examine how well global NSPs’ WAN services support this use case, including private WAN and internet connection options in the region, cloud connectivity, managed SD-WAN and security services, service portals, APIs, and SLAs in this region.
Intra-Europe Network
This use case is for enterprises that have most of their business locations in countries within Europe.
We examine how well global NSPs’ WAN services support this use case, including private WAN and internet connection options in the region, cloud connectivity, managed SD-WAN and security services, service portals, APIs, and SLAs in this region.
Intra-North America Network
This use case is for enterprises that have most of their business locations in Canada and the United States.
We examine how well global NSPs’ WAN services support this use case, including private WAN and internet connection options in the region, cloud connectivity, managed SD-WAN and security services, service portals, APIs, and SLAs in this region.