Software-based routing is eating into the traditional branch router market

As more and more enterprises begin to realize the huge benefits of software, the rise of software-based routing and SD-WAN may quickly replace traditional branch routers.

Enhanced silicon performance and improved routing software (e.g., software-defined WAN) have combined to bring down the multi-billion dollar branch router market. Distributed enterprises are deploying software-based routing as an alternative to traditional branch router architectures.

Virtual router software easily handles typical branch routing needs. The rise of SD-WAN applications and the need for centralized branch management will also promote the adoption of virtual routing in branch offices. Doyle Research expects that future branch network functions will include software-based security, routing, SD-WAN, WAN optimization and other services. All of these functions can be managed by the enterprise, channel partners or managed services. Enterprise spending on branch routers has peaked and is starting to slowly decline.

For SD-WAN, 2017 was a breakthrough year, with many enterprises starting or continuing their SD-WAN deployments. SD-WAN offers clear advantages in WAN performance, reliability, and manageability. Doyle Research predicts that the global SD-WAN market will exceed $2 billion by 2020.

Advantages of software-based routing

Software-based routing takes advantage of the price and performance gains of merchant silicon and can run on a variety of platforms, including standard servers. As Intel and ARM introduce new and faster silicon platforms, software routing performance will continue to improve. Software provides flexibility and the ability to update easily. Its benefits include:

• Routers can be placed anywhere;
• Easily update routing capabilities;
• Flexible pricing model and lower costs, saving more than 30%.

Software-based routing will replace traditional branch routers

Although software-based routing is still in the early stages of deployment, the application of SD-WAN is growing rapidly. Many IT companies with large MPLS networks choose to run SD-WAN in parallel with existing branch routers. As SD-WAN and software-based routing mature, they will inevitably replace traditional branch routers and WAN optimization. Software-based routing has obvious advantages in flexibility, ease of management, and the ability to converge branch network functions onto a common platform.