Chapter 2. Adoption of Cloud-Managed Networking
The cloud-managed networking market is substantial and rapidly expanding. Recent estimates suggest it reached a value of $489 million in 2022 and is projected to more than double in size within the next five years.1 Analysts point to a compound annual growth rate (CAGR) exceeding 20%, indicating exceptional momentum in this sector.
Why Is Cloud-Managed Networking Growing So Rapidly?
Several factors fuel this expansion. CMN’s ability to simplify deployment, streamline management, and enhance network security appeals to businesses of all sizes. In addition, the rise of remote work models has accelerated adoption, as has the widespread shift toward cloud-based applications services that demand highly adaptable network solutions.
Technology-centric businesses, born-in-the-cloud startups, and companies with distributed branch offices were among the earliest to embrace CMN. Their need for agility and centralized management made it a natural fit.
Adoption is now reaching across industries. Retail, healthcare, manufacturing, and even traditionally conservative sectors like finance are increasingly aware of the benefits. The need for agility and reliable network connectivity across numerous locations is driving the expansion of CMN into the mainstream.
CMN dovetails closely with SD-WAN. Many cloud-managed network providers tightly integrate SD-WAN’s ability to optimize traffic flow across diverse network links, such as multiprotocol label ...
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