Market for software-defined networks keeps growing, fueled by need for flexibility to support new technologies, competitive advantage, ISG Provider Lens® report says
Enterprises in the U.S. continue to lead the world in adopting software-defined network services and solutions to enable digital transformation, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens® Network — Software-defined Solutions and Services report for the U.S. finds that companies of all sizes are seeking more flexible, secure and cost-efficient networks for competitive advantage. The U.S. is the largest consumer of software-defined wide-area networks (SD-WANs) and the source of highly advanced as-a-service offerings from system integrators and network providers that shape the global SD-WAN landscape.
"SD-WANs are nearly ubiquitous in large U.S. enterprises, and many small and medium-sized companies have joined the migration," said Dieter Thompson, partner and president of ISG's Network Advisory business. "Rigid legacy infrastructures will not allow organizations to adapt to new technologies, business requirements and processes."
SD-WANs simplify and accelerate cloud migration at many enterprises due to their ability to manage diverse network connections, including direct internet access and multiprotocol label switching (MPLS), the report says. Though many U.S. enterprises overlay SD-WANs on existing infrastructure, enhancing performance and scalability over time, others replace legacy networks all at once — after testing an SD-WAN's service level agreements against functional and business requirements.
Companies are adopting SD-WANs, especially when delivered as a service, to make networks more flexible and simpler to manage, ISG says. SD-WAN services enable enterprises to conduct real-time monitoring and management via a centralized, cloud-based control plane, which streamlines the addition of new network resources and applications. This allows companies to more easily introduce automation, orchestration and policy-driven network configuration to adapt to changing needs.
The ability of software-defined networks to support multicloud environments while reducing complexity is a major reason for their increasing popularity in the U.S., the report says. As companies continue to adapt their cloud strategies and embrace cloud-native technologies, SD-networking allows data and applications to flow securely and efficiently across cloud platforms.
Growing security threats have led many organizations to demand integrated security solutions, for which software-defined networking often provides the foundation, ISG says. Companies want a single, secure attack surface from on-premises to cloud, incorporating encryption, access control and threat intelligence. Many are combining SD-WANs with cloud-based security services to form secure access service edge (SASE) frameworks.
Small and medium-sized enterprises (SMEs) are embracing SD-networking to access network and security services without making substantial investments in hardware, the report says. Leading providers are meeting this demand with SME-specific solutions, especially scalable SD-WANs with consumption-based pricing models.
"Consuming software-defined networking as managed services is attractive to companies that want to reduce overhead and complexity, especially smaller businesses," said Dr. Kenn Walters, ISG global lead analyst and author of the report. "Providers are meeting the growing demand for network flexibility to support new technologies, including AI and automation."
The report also explores other U.S. trends related to software-defined networking, including the rising importance of edge computing and enterprise 5G connectivity.
For more insights into the networking challenges U.S. enterprises face, along with ISG's advice for addressing them, see the ISG Provider Lens® Focal Points briefing here.
The 2025 ISG Provider Lens® Network — Software-defined Solutions and Services report for the U.S. evaluates the capabilities of 36 providers across four quadrants: Managed SD-WAN Services, SD-Networks Transformation Services (Consulting and Implementation), Edge Technologies and Services (Including Private 5G) and Secure Access Service Edge.
The report names Accenture, HCLTech, Orange Business and Verizon Business as Leaders in all four quadrants. It names Comcast Business, Kyndryl and Microland as Leaders in three quadrants each. Apcela, GTT, Logicalis, Lumen Technologies, T-Mobile and Wipro are named as Leaders in two quadrants each. Cato Networks, Colt and Tech Mahindra are named as Leaders in one quadrant each.
In addition, GTT and TCS are named as Rising Stars — companies with a "promising portfolio" and "high future potential" by ISG's definition — in one quadrant each.
In the area of customer experience, HCLTech is named the global ISG CX Star Performer for 2025 among networking service and solution providers. HCLTech earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from Comcast Business and GTT.
The 2025 ISG Provider Lens® Network — Software-defined Solutions and Services report for the U.S. is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens® Research
The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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