SD-WAN means software-defined wide area network it's a new way to approach
rowdy in the world of cloud computing right and st1 is about using policy
based rules to orchestrate the routing of all your applications in the cloud
world and so it's all about being simple and it's about having a way to take
advantage of the power of cloud that old-fashioned 20th century old routers
really couldn't do they didn't have the flexibility power and agility to do what
SD van can do so it's a very important new development in the world of
networking and it's gonna it's going to run the table over the next five years
in terms of everyone's purchase and deployment of networking worldwide
right now there's a thing according to Gartner 38 different companies claiming
to be SD land companies because it's the flavor of the day and really what people
are saying is if they have some sort of software that does some kind of
addressing or routing that that makes them SD land and that's a piece of it
but we think there's a bigger world the SD when it's a base level you know in a
larger world of what we call cloud networking where you need the policy
based orchestration of your routing that SDRAM provides but then have the full
end-to-end services that people want in a network routing world including the
land optimization visibility the access to Wi-Fi and to the land resources of
all the all those spots that you're routing and doing your networking to
when we started riverbed when you know the big networking companies like
Juniper and Cisco started it was a simple world CIO had an on-prem server
serving to his knowledge workers at the edge across the captain MPLS network
right that was the world in 2002 16 years ago and we started our company in
2018 which is coming up you still have the on-premise server the people at the
edge but now the CIO has to mix and match he's got to have SAS applications
coming in workday office 365 Salesforce he's got to be able to access AWS from
Amazon he's got to be able to access Microsoft Azure he's got to be able to
bring in office 365 and he's got a Nixon match that with his own arm creme server
and he wants to use not only captive MPLS but he also wants to take the
advantage of cheaper internet broadband that's out there
let branch offices go what's known as direct to net from the branch to these
cloud services as well as backhaul and across the MPLS the data center the type
of network that exists right now the 20th century network is really not meant
to do that it's not flexible it's very clumsy and cumbersome to reprogram
routers particularly if you have hundreds and thousands of them you have
to write literally thousands of lines and what's known as CLI commands command
line interfaces to make a router do what you want so you can't really take
advantage of all the power of the cloud with old-fashioned network technology so
SD when allows you to mix and match MPLS with Internet broadband allows you
to from a single interface point do we orient the way your routers work based
on rules and policies by application type rather than being Hardware based in
layer two and three you have the advantage of being software base using
application knowledge at layer seven this is very powerful for people it's
much simpler and it brings in all the benefits of cloud computing and the cost
benefits that being able to substitute internet broadband in place of expensive
MPLS
it's nascent it's still beginning so it's it's this is really it's really
only been around about 18 months you know it's it'll probably take off faster
than most markets have because the benefits are so extreme the need for it
is there people want it but there's still a lot tire kicking we've you know
we've been in it about a year and a half now we have between four and five
hundred paying customers so that's we're probably ahead of the mob in this
all the POC is are coming to fruition I said we already have 400 purchases
I think the first half of 2018 will see it deepened I think it'll take off
second half of 18 and then be full-bore 2019 2020 you'll have you'll have the
use cases you'll have big accounts who are willing to be referenceable you'll
have the channel partners and the service providers used to it and it'll
just be the topic of the day in the entire networking world