Key points:
- SD-WAN adoption is growing, but most companies are upgrading networks slowly instead of replacing everything at once.
- AI helps automate networks, but full automation isn’t here yet — humans are still needed to manage complex systems.
- Edge computing and private 5G are moving from ideas to real-world use, especially in factories and warehouses.
Software-Defined Networking Grows, But Full Replacements Rare
The market for software-defined networking (SDN), especially SD-WAN, continues to grow. But many companies are not doing full network replacements like some tech vendors hoped they would. Instead, most are adding new technology on top of their old systems in steps. This information comes from a new report by ISG, a company that studies technology markets.
The report looked at 36 providers in the U.S. offering SDN services. It focused on areas like managed SD-WAN services, consulting, secure access solutions (SASE), and edge technologies—all of which are important parts of Microsoft’s cloud and networking goals, especially when connecting with Azure and hybrid environments.
One big finding: even large corporations with strong digital setups are choosing slow upgrades over full network replacements. They want to avoid the risks and costs that come with changing everything at once.
“Even the digitally mature enterprises are favoring controlled, phased transitions,” said ISG analyst Yash Jethani Pradeep. He added that many companies deal with old contracts and strict rules that make it hard to change fast.
AI brings help — but not full control
There’s strong interest in using artificial intelligence (AI) to manage networks better. Many companies want self-healing systems, automatic fixes, smart routing, and faster problem detection. These tools do help improve how networks run.
However, fully automatic networks—the kind where no human input is needed—are still more of a dream than a reality.
“We did not see evidence of autonomous WAN tuning with GenAI Copilot,” said Pradeep. “There has to be a human in the loop still.”
In other words, while AI helps, humans are still needed to make sure everything runs right.
Edge tech and 5G go live
Another major trend is the real-world use of edge computing and private 5G networks. These technologies are now being used in places like factories and warehouses. They allow for faster, more reliable connections—key for industrial apps and IoT devices linked with platforms such as Microsoft Azure.
Looking ahead, experts expect these systems to become even smarter. Work is underway to combine satellite internet (like Starlink), Wi-Fi 6 and 7, and more advanced security features into integrated networks.
This could lead to better support for modern business needs, especially where low-latency, high-reliability performance must connect directly with cloud services like Azure.
For companies running on Windows Server or building hybrid environments using Microsoft technologies, these trends show that gradual upgrades, careful AI use, and edge-based networking are the smart path forward.
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