Following a triple-digit revenue increase in 2019 for U.S. Carrier Managed SD-WAN Services, the growth outlook for 2020 has been lowered to 17% due to the impact of COVID-19, according to ENS @SD-WAN research just released from Vertical Systems Group. Despite this market dip, the forecast shows measurable economic recovery during Q4 of this year, and a revenue rebound starting in 2021 that extends through 2024.
Vertical’s SD-WAN forecast incorporates government directives, macro-economic data, enterprise demand information and service provider feedback. Topline forecast assumptions are displayed in the timeline infographic shown above. Detailed timeline assumptions for this COVID-19 impact analysis are included in the latest ENS @SD-WAN research release, which covers projections through 2024 for U.S. revenue, billable sites installed and WAN connections.
Key 2020 Timeline Assumptions
- January – February: The robust demand for managed SD-WAN services in 2019 continues into the first two months of 2020. New customer installations increase as orders from the previous year are fulfilled.
- March – April: The COVID-19 pandemic emerges across the U.S., forcing business shutdowns and stay-at-home orders. Some planned SD-WAN implementations are deferred.
- May – August: Gradual reopening of businesses proceeds subject to variable state-by-state guidelines. Some companies file for bankruptcy, particularly in hard hit verticals (e.g., retail, travel, etc.). The SD-WAN pipeline for new logo sales erodes.
- September – October: Enterprises and suppliers adjust to new operations realities. An economic rebound begins to take hold.
- November – December: Economic recovery gains momentum. SD-WAN sales increase and site installations accelerate.
https://www.verticalsystems.com/2020/05/28/statflash-sdwan-covid-2020/