The SASE market is fast becoming a more significant component of the enterprise networking space. Consisting of SD-WAN and SSE (security service edge) solutions, the market bucked macroeconomic pressures to surpass 38 percent year-over-year (Y/Y) revenue growth in the second quarter.
According to Dell’Oro Group, quarterly revenue broke through the $2 billion marker to set a record. The research firm said quarterly revenue has doubled in just ten quarters as enterprises go all in to improve networking and security services in the mobile- and cloud-first era.
There were several shifts among the vendors serving the SASE market.
Cisco regained the one revenue spot in overall SASE after losing it for the first time to Zscaler in the first quarter of 2023. Vendors are characterized by two main domains: overall SASE and single-vendor SASE. The top 5 Overall SASE vendors were Cisco, Zscaler, Palo Alto Networks, Broadcom (Symantec), and Fortinet. In comparison, the five single-vendor SASE vendors were Cisco, Palo Alto Networks, Fortinet, Netskope, and Versa Networks.
Revenue associated with single-vendor SASE (vendors that offer both SD-WAN and SSE) grew nearly 70 percent year-over-year and represented over half the SASE market.
"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," said Mauricio Sanchez, senior research director for enterprise networking and security for 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 substantially raise customer appeal.”
He added, "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.”
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