SD Networks set framework for Asia Pacific modernization

Companies shift to flexible software-defined systems for tighter security, lower costs, continued cloud migration, ISG Provider Lens report says.

Enterprises in Asia Pacific are moving toward software-defined networking (SDN) to make communication more secure and resilient and speed up business decision-making, according to a new research report published today by Information Services Group (ISG). 

The 2024 ISG Provider Lens Network — Software-defined Solutions and Services report for APAC finds that companies in the region – which for this report covers Australia, New Zealand, Southeast Asia and India – are seeking more efficient, secure and flexible networks to address rising business challenges.  

Many are reported as still adding expensive traditional network links and need to modernize connectivity for cloud migration. Demand for SDN is expected to remain strong in the coming years, especially in high-growth emerging markets such as India. 

“Asia Pacific enterprises want to keep growing in the face of new demands to decarbonize and utilize AI in their operations – to carry out digital transformation initiatives, they need rapid, cost-efficient network provisioning,” said Michael Gale, Partner and  

Software-defined wide-area networks (SD-WANs) have been the preferred infrastructure for remote workforces and cloud-connected applications for several years. 

But as recently as 2021, APAC companies struggled to negotiate SD-WAN carrier contracts, the report said. 

Since then, service providers and carriers have introduced cost-competitive options with plug-and-play setup. Expanded offerings from system integrators and traditional network service providers have helped to drive SD-WAN growth. 

APAC remains slightly behind the US and UK in adopting fully managed or co-managed SD-WAN services, which can reduce costs and implementation risks while allowing automated monitoring and reporting with single-screen administration, the report notes.  

Yet, compared with these other markets, APAC organizations have even higher expectations for savings, flexibility and technological advancement through these services, ISG says. 

For a growing number of large enterprises in APAC, SDN adoption is part of implementing a secure access service edge (SASE), a comprehensive set of managed services in which enterprise networking and security fully converge, the report says.  

Companies often procure SASE as a fully managed service from an IT service provider, though clients in the Philippines and Indonesia more commonly turn to network equipment vendors and telcos – while those in Singapore and Malaysia tend to rely on cloud service providers. 

“Enterprises across Asia Pacific remain deeply concerned about network security,” said Jan Erik Aase, Partner and Global leader, ISG Provider Lens Research.  

“SD networks form the basis for complete SASE implementations that can meet their security expectations.” 

The report also examines other SDN trends in Asia Pacific, including the growing adoption of SD-WANs by smaller enterprises and the steady expansion of edge computing that has helped to drive network modernization.