This is the second of a two-part blog series that explores how enterprise IT leaders can effectively measure the return on SD-WAN investments. In my first installment of this series, I discussed how IT leaders can make a business case for moving from a traditional router-centric architecture to a business-first networking model SD-WAN, like the one delivered by Silver Peak.
According to a recent report by IDC, the SD-WAN market is poised to reach $5.25 Billion in 2023. The report also predicts the SD-WAN industry to grow at a compound annual growth rate (CAGR) of 30.8 percent from 2018 to 2023, and that is driving a lot of attention to this new way of deploying WAN infrastructure. CIOs are asking how and why they will use SD-WAN and how they can justify making SD-WAN investments.
SD-WAN is winning over CIOs for four main reasons:
- Increasing network and application performance and availability
- Increasing WAN bandwidth while keeping WAN transport costs under control
- Bringing new sites and applications online more quickly
- Strengthening security and reducing the attack surface at branch locations as applications continue to migrate to the cloud
However, are these reasons compelling enough for every CIO to bet on SD-WAN? At the end of the day, every enterprise is to some degree unique – no two organizations have identical requirements when it comes to investing in the technologies that drive and enable digital transformation.
So, what should IT leaders consider and evaluate when making the business case for a business-driven SD-WAN? Any basic evaluation should answer three basic questions:
- Why invest in SD-WAN?
- Why partner with SD-WAN vendor X?
- Why now?
The business case should consider the organization’s current network infrastructure, operational model and digital business strategy. This is where a personalized SD-WAN value assessment can provide timely and tangible insight to the organization.
Understanding the Business Value and Financial Impact of SD-WAN
Silver Peak – the global SD-WAN leader that delivers the transformational promise of the cloud with a business-first networking model – has been in the business of building secure, self-driving wide area networks (SD-WANs) for enterprise customers for 15 years, providing organizations of all sizes and industries with great value.
But how is that value measured, and how are customers assured of realizing a real return on their investments?
The answer is with a Customer Value Assessment, a new consultancy service that Silver Peak offers to help enterprise IT organizations build a business case for SD-WAN and measure the return on their investment, incorporating a detailed evaluation of an organization’s strategic and operational rationale for investing in a business-driven WAN architecture. The assessment includes a full analysis of operational and financial benefits, including return on investment (ROI) calculated by year. This analysis enables decision influencers and decision makers to determine – based on hard numbers – where and when an investment in SD-WAN makes sound business sense.
Customer Value Assessment – A Real-world Example
A recent Customer Value Assessment produced by Silver Peak for a leading distributor in the food industry showed the dramatic impact of SD-WAN on this company’s business. By deploying the Silver Peak Unity EdgeConnect™ SD-WAN edge platform, the Customer Value Assessment projected financial benefits of $1.15 million per year, plus another $109,000 in one-time benefits. The Silver Peak Customer Value Assessment broke down the company’s business issues into six key areas and mapped them to SD-WAN enablers that would address the issues in each area. Table 1 summarizes this analysis.
In addition to detailing the operational benefits achievable with the Silver Peak SD-WAN, the Customer Value Assessment also produced dramatic financial benefits for this food industry company. These numbers come from extensive research, using actual circuit costs from the customer, known costs from industry vendors, and information from the Silver Peak knowledgebase.
Table 2 below provides an overview of the key value drivers for realizing the projected financial savings, including conservative and target estimates for potential improvement and value.
Ultimately, the Customer Value Assessment proved to this customer how the Silver Peak EdgeConnect SD-WAN edge platform enabled the business to shift to a business-first networking model, freeing the company from the constraints of a router-centric approach, ultimately turning the WAN into a business enabler.
Time to Justify your SD-WAN Investment
Selecting the right technologies to drive your digital business transformation can be a daunting task. Taking into consideration the undeniable benefits that a business-driven SD-WAN provides, the chances are high that your organization will more than likely consider making an investment in SD-WAN technology.
So, if you are thinking about how to rearchitect your WAN to better align to your digital transformation and cloud initiatives, let Silver Peak perform a Customer Value Assessment to make SD-WAN a sound strategic investment for your business. Finally, there’s a compelling business justification to reinvent your network at your fingertips.
Do you want to take the next step in your SD-WAN journey and become the SD-WAN expert on your team? Silver Peak is hitting the road with a series of COMPLIMENTARY half-day workshops, featuring a hands-on guided lab experience and deep dive into the Silver Peak Unity EdgeConnect™ SD-WAN edge platform. Register here to save your seat!