'Dell’Oro Group: Enterprise SASE Spend to Remain Vigorous in 2023 and Drive the Market to $8B

December 22, 2022

According to a recently published report from Dell’Oro Group, the ongoing need to modernize the network and security architecture for branch offices and hybrid users led to the vigorous 33 percent revenue growth in the SASE market. We anticipate that enterprises will continue to place a high priority on SASE and cause the overall SASE market to grow to $8 B for the full year 2023.

“3Q 2022 was the seventh consecutive quarter of year-over-year SASE revenue growth topping 25 percent, which signals the importance enterprises are placing on SASE,” said Mauricio Sanchez, Research Director, Network Security, and SASE & SD-WAN at Dell’Oro Group. “Unlike some other network security markets we track, we expect the high investment priority will continue and lead to the SASE market eclipsing $8 B in 2023,” added Sanchez.

Additional highlights from the 3Q 2022 SASE & SD-WAN Quarterly Report:

SASE security, also referred to as SSE (the basket of products providing cloud-delivered SWG, CASB, ZTNA, and FWaaS), achieved its tenth consecutive quarter of sequential revenue expansion.

SASE networking, synonymous with SD-WAN, had a challenging Y/Y comparison in 3Q 2022 against a very strong 3Q 2021 when enormous pent-up demand was a significant driver. Nonetheless, the ongoing trend of improved supply chains allowed vendors to better service demand and sustain a similar level of market growth compared to recent quarters.

Also, Versa Networks has again been named the Deployed SASE and Enabled SD-WAN market leader by 650 Group as published this month in its 3Q22 SASE report and 3Q22 SD-WAN report.

According to 650 Group, Versa posted the leading market share for Deployed SASE and Enabled SD-WAN for Q3 2022 worldwide revenue. Versa has maintained the leading market share in these categories since 2020.

Kelly Ahuja, CEO of Versa Networks added, "Digital acceleration of workloads and applications to cloud and hybrid work have increased the cybersecurity threat landscape for all business. SASE has become one of the top 3 technologies prioritized by CIOs/CISOs globally to address their security and networking needs. Versa’s focus from Day 1 has been to integrate the security and networking which has now been labelled as SASE. Versa’s unified SASE platform is designed with a single-pass scanning architecture to deliver SD-WAN, SWG, ZTNA, FWaaS, CASB, RBI, DLP, UEBA to connect and protect their enterprises through a unified policy, unified data lake and unified console. This simplification, improved risk posture and better user experience. Versa’s unique set of comprehensive SASE services has been recognized as the leading solution across the industry, and it’s rewarding to see our market leadership validated in these 650 Group reports."

650 Group evaluates over a dozen SD-WAN vendors and over two dozen SASE vendors each quarter to analyze vendor performance quarterly. Each report includes market shares and five-year forecasts with various performance metrics. According to 650 Group, Deployed SASE is defined as single-vendor SASE deployed as a suite. Enabled SD-WAN means a customer has purchased and uses SD-WAN functions.