'Many SD-WAN start-ups won't make it' - Aruba Networks VP

Aruba solutions VP Lissa Hillinger claims smaller vendors will suffer in a 'fragmented' market

A large number of start-ups in the SD-WAN space will most likely not survive past their funding phases, according to Aruba Networks VP Lissa Hollinger.

SD-WAN has become a crowded market, with a number of start-ups being snapped up by larger vendors.

Last year VMware acquired VeloCloud, while Cisco bolstered its SD-WAN offering with the $610m (£460.7m) acquisition of Viptela.

Meanwhile, IDC estimates that the SD-WAN market will achieve a compound annual growth rate of more than 90 per cent between 2015 and 2020 to hit $6bn.

Aruba Networks' Hollinger believes that a lot of start-ups that have entered the market may exit soon, which she claims is a concern for the channel when choosing a vendor partner.

She added that the number of start-ups in the space has created a "fragmented" market.

"It's important for channel partners to really think long and hard about who they are going to partner with, because many of these start-ups, quite frankly, aren't going to make it. Some of them are in their last round of funding," Hollinger said.

"It's important for channel partners to make sure when they adopt and recommend SD-WAN for their customers, that they're considering the longevity of the company and the solution so that they're providing their customers with a solution that will be future-proofed."

Hollinger added that while many start-ups offer "relatively robust solutions", others do not and are instead addressing only the WAN side of the branch.

She also claimed that legacy vendors are acquiring start-ups to bolster their SD-WAN offerings, but are failing to effectively integrate the solutions with their own portfolio.