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SASE, SD-WAN and Wi-Fi bring good news

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2023 looks like a good year for the networking and infrastructure sectors. Analysts predict continued revenue growth as enterprises modernise to support digitisation and remote working, with sales of SASE and wireless equipment growing fastest of all.

Spotlight on SASE’s growth

SASE is currently enjoying rapid take-up and impressive revenue growth. SASE, Secure Access Service Edge, is a cybersecurity concept which shifts the security focus away from the data centre and its firewalls to the individual and their access to applications and services.

Gartner rightly identified SASE as a winning cybersecurity concept in 2019. Since then, subsequent analysts’ reports all agree on the rapid success of SASE. Now Gartner predicts SASE sales to reach $9.2 Billion in 2023, an increase of 39% on 2022, and to climb to $15 billion by 2025.

Dell’Oro Group’s research into SASE supports this. Dell’Oro reports that the worldwide spend on SASE grew at 34% during 2022 and passed $6 billion. This means that SASE revenues have grown in excess of 30% for three consecutive years.

There are good reasons for this growth. As enterprises modernise their corporate networks and require secure access to their cloud-based systems, SASE protects the individual employees working at the network perimeter. SASE goes hand in hand with SD-WAN which finds the fastest route for network traffic and optimises the network.

SASE market facts

Dell’Oro presents more facts. The three market leaders, Cisco, Z-Scaler and Broadcom-Symantec hold 40% of the market between them. Sixty per cent of the SASE market is from sales of SSE, the security part of SASE which secures users’ access to their cloud based applications. The networking element, SD-WAN, makes up the remaining 40% of sales. SD-WAN drives network traffic through the fastest route and enables enterprise software applications to perform better. This is an attractive proposition because it also helps organisations to reduce their network operating costs. SASE and SD-WAN together are the perfect solution for the post-pandemic world that embraces the hybrid office and distributed working styles.

Infrastructure and Wi-Fi looking good

While SASE is growing in popularity, the wider market for network infrastructure is also performing well. Global IT market intelligence company Context reports enterprise networking sales up 23.4%. This growth, they say, was driven by sales of mid and high end hardware. Their figures, which are based on distributors’ revenues, report strong growth in revenues from enterprise networking products across Europe at the start of Q1 2023.

Context splits their figure into network switching with growth of 20.3% and wireless networking which grew much faster at 38.2%. They attribute these volumes to solid demand for infrastructure and the improved availability of components in the last few months. Then they report an even higher figure for wireless market segment. Sales of wireless equipment grew at 46.9% during the whole of 2022, driven by digital transformation, workplace changes and the switch to Wi-Fi6.

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