Gartner Research

Forecast Analysis: Enterprise Networking Connectivity Growth Trends, Worldwide

Published: 20 September 2019

ID: G00385103

Analyst(s): Lisa Unden-Farboud , To Chee Eng , Gaspar Valdivia , Susanna Silvennoinen , Grigory Betskov

Summary

Cloud and digital business are transforming enterprise IT architectures and requirements on WAN services. Service providers’ ability to support hybrid IT with cost-efficient connectivity, as well as agile and flexible data network services, will be key to compete for a flat $145 billion market.

Table Of Contents
  • Forecast Assumptions
  • Market Impacts
  • Notable Changes

Forecast Data Summary

Forecast Model Summary

Influencing Factors and Assumptions

  • Influencing Factor: Maturity of SD-WAN Products and Service Offerings
    • Forecast Assumption: By year-end 2023, 60% of enterprises will have implemented SD-WAN, up from less than 20% in 2019, to increase network agility and enhance support for cloud applications.
  • Influencing Factor: Shift in Enterprise WAN Topologies
    • Forecast Assumption: By 2023, 30% of enterprise locations will use internet-only WAN connectivity, up from less than 10% in 2019, to reduce bandwidth’s cost.
  • Influencing Factor: Cloud and Multicloud Adoption
    • Forecast Assumption: By 2023, more than 50% of large organizations will connect to cloud providers using direct cloud connectivity from their WANs, up from 10% in 2019.
  • Influencing Factor: Use Cases Demanding High Bandwidth and Low-Latency Connections
    • Forecast Assumption: Through 2022, more than 75% of enterprises adopting a cloud-first strategy will continue to host business-critical applications in traditional data center environments.

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