Market Note: The WAN Edge Infrastructure Market
Bottom Line
The WAN Edge Infrastructure market is rapidly evolving towards Secure Access Service Edge (SASE) solutions, with projected growth from $2.9 billion in 2021 to $4.6 billion by 2026. This shift is driven by organizations' need for simplified network architecture, improved security, and support for distributed workforces. Established networking vendors like Cisco and VMware are leading the pack, leveraging their extensive customer bases and comprehensive feature sets. However, security-focused vendors such as Palo Alto Networks and Fortinet are closing the gap, while innovative challengers like Cato Networks and Versa Networks are pushing the boundaries with cloud-native architectures.
Key trends shaping the market include the adoption of cloud-native architectures, integration of AI and machine learning for advanced security analytics, consolidation of network and security functions, support for edge computing, and the prominence of Zero Trust Network Access (ZTNA) in SASE offerings. Organizations evaluating SASE solutions should consider their existing infrastructure, security requirements, cloud strategy, and vendors' roadmaps for integrating networking and security functions. The market is likely to see further consolidation and innovation, with AI-driven security, edge computing support, and advancements in ZTNA emerging as key battlegrounds. As the line between networking and security continues to blur, vendors that can offer truly integrated, cloud-native SASE platforms with strong performance, scalability, and ease of management will be best positioned for success in this rapidly evolving market.
Comprehensive WAN Edge Infrastructure and SASE Vendor Analysis
Market Overview
The WAN Edge Infrastructure market continues to evolve rapidly, with a strong shift towards Secure Access Service Edge (SASE) solutions. This market reached $2.9 billion in 2021 and is projected to grow to $4.6 billion by 2026, at a CAGR of 9.5%. The convergence of networking and security functions, delivered as cloud-based services, is driving this growth as organizations seek to simplify their network architecture, improve security, and support increasingly distributed workforces.
Vendor Comparison and Analysis
Cisco
Score: 9/10 (Ability to Execute: 9, Completeness of Vision: 9)
Cisco's comprehensive SASE offering, Cisco SecureX, is a market-leading solution that seamlessly integrates SD-WAN, cloud security, zero trust, and threat intelligence capabilities. Cisco's core strength lies in its deep integration with existing Cisco infrastructure, allowing for a smooth transition for customers already invested in the Cisco ecosystem. This is exemplified by the full integration of Cisco's Viptela SD-WAN technology, acquired in 2017, into their enterprise routing platforms. However, the complexity of Cisco's solution can be a challenge for some customers, especially those operating in heterogeneous network environments.
Palo Alto Networks
Score: 7.5/10 (Ability to Execute: 7, Completeness of Vision: 8)
Palo Alto Networks has positioned itself as a strong challenger in the SASE market with its Prisma SASE solution, which combines the company's renowned Prisma Access cloud-delivered security with the SD-WAN capabilities acquired through the CloudGenix purchase. Palo Alto's key strengths lie in its advanced security features, including threat prevention and data loss prevention, which give it a distinct edge in the market. The CloudGenix acquisition has significantly bolstered Palo Alto's SD-WAN capabilities, and the introduction of ZTNA 2.0 demonstrates the company's commitment to innovation. However, Palo Alto Networks must continue to keep pace with the rapid evolution of the SASE market to maintain its competitive position.
Fortinet
Score: 7.5/10 (Ability to Execute: 8, Completeness of Vision: 7)
Fortinet has leveraged its strong security heritage to build a compelling SASE offering with its FortiSASE solution, which combines the company's flagship FortiGate Secure SD-WAN with FortiClient for endpoint protection and FortiCASB for cloud security. Fortinet's key advantage is its tightly integrated security stack, which is further enhanced by its purpose-built security processors, as exemplified by the powerful FortiGate 4800F series. While Fortinet's security-first approach is a valuable asset, there is a perception that the company is more focused on security than networking, which may present a challenge in the evolving SASE market.
VMware
Score: 8/10 (Ability to Execute: 8, Completeness of Vision: 8)
VMware has established a strong position in the SASE market with its platform built on the company's VeloCloud SD-WAN technology. VMware's SASE offering seamlessly integrates SD-WAN, cloud security, zero trust network access, and secure web gateway functionalities, providing a comprehensive solution for customers. The $2.1 billion acquisition of Carbon Black in 2019 has allowed VMware to incorporate advanced endpoint security and threat detection capabilities into its SASE platform, further strengthening its value proposition. VMware's recent introduction of the Edge Network Intelligence feature demonstrates its commitment to providing AI-driven insights for network optimization and troubleshooting.
Versa Networks
Score: 7/10 (Ability to Execute: 6, Completeness of Vision: 8)
As a relatively smaller player in the market, Versa Networks faces challenges in its Ability to Execute compared to larger competitors. However, the company's unified SASE platform and its focus on delivering networking and security as a single, integrated solution showcase a strong vision that is well-aligned with the market's evolution towards convergence. Versa's Secure SD-WAN solution, which now includes 5G support and integration with Microsoft Azure Virtual WAN, demonstrates the company's commitment to addressing emerging connectivity requirements and staying at the forefront of SASE innovation.
Cato Networks
Score: 6.5/10 (Ability to Execute: 5, Completeness of Vision: 8)
Cato Networks stands out in the market with its fully cloud-native SASE platform, which represents a unique and innovative approach to addressing the evolving networking and security needs of organizations. Despite its lower Ability to Execute score relative to established players, Cato has shown impressive growth, securing $200 million in funding at a $2.5 billion valuation in 2021. Cato's global private backbone of over 75 PoPs and its recent introduction of client-less ZTNA capabilities demonstrate the company's commitment to providing a highly scalable, secure, and user-friendly SASE solution.
Key Trends and Observations
Cloud-Native Architectures: Vendors are increasingly adopting cloud-native architectures, with Cato Networks leading this trend and others following suit.
AI and Machine Learning Integration: Advanced analytics and AI-driven security are becoming key differentiators, as seen in VMware's Edge Network Intelligence and Palo Alto's AutoFocus threat intelligence service.
Consolidation of Network and Security Functions: The trend towards unified SASE platforms is driving acquisitions and partnerships across the industry.
Edge Computing Support: SASE vendors are enhancing their offerings to support distributed computing models, as exemplified by Cisco's edge computing solutions.
Zero Trust Network Access (ZTNA): ZTNA is now a core component of SASE offerings, with vendors like Palo Alto Networks and Cato Networks making significant advancements in this area.