The overall SASE market – consisting of SD-WAN and SSE (security service edge) solutions – bucked economic uncertainty with 38% YoY revenue growth in the second quarter of 2023, according to the Dell’Oro Group, breaking through the $2-billion mark to set a new record.
Quarterly revenue has doubled in just 10 quarters as enterprises go all in to improve networking and security services in the mobile and cloud-first era.
“Even though sales cycles are longer and additional budget scrutiny is the norm in the current macroeconomic environment, we were pleasantly surprised with the strength of the SASE market,” says Mauricio Sanchez, senior research director, Enterprise Networking and Security at Dell’Oro Group. “Beyond the argument around SASE’s superior architecture to provide users secure access to cloud-based applications from anywhere, we see SASE pushing into end-to-end network application monitoring and data protection realms that together substantially raise customer appeal.
“While many customers look to SD-WAN and SSE’s SWG, CASB, ZTNA, and FWaaS functionality as table stakes, vendors that show more and can deliver value to adjacent areas stand to distinguish themselves in a crowded market,” adds Sanchez.
Additional highlights from the Q2 2023 SASE and SD-WAN Quarterly Report include:
* Cisco regained the Number One revenue spot in overall SASE after losing it for the first time in Q1 2023 to Zscaler.
* Top five overall SASE vendors were Cisco, Zscaler, Palo Alto Networks, Broadcom(Symantec), and Fortinet.
* Revenue associated with single-vendor SASE (vendors that offer both SD-WAN and SSE) grew nearly 70% YoY and represented over half the SASE market.
* Top five single-vendor SASE vendors were Cisco, Palo Alto Networks, Fortinet, Netskope, and Versa Networks.