Dell’Oro: SASE Quarterly Revenue Doubled from $1 to $2 Billion Over 10 Quarters

The overall SASE market – consisting of SD-WAN and SSE (Security Service Edge) solutions – bucked economic uncertainty with 38 percent year-over-year (Y/Y) revenue growth in 2Q 2023, according to the Dell’Oro Group, a Redwood City, California-based market research firm. Quarterly revenue doubled in just ten quarters, breaking through the $2 billion marker to set a new record, according to Dell’Oro.

“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, Sr. Research Director, Enterprise Networking and Security at 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 together substantially raise customer appeal. 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,” added Sanchez.

According to the report, Cisco retook the number one revenue spot in overall SASE after losing it for the first time in 1Q 2023. Zscaler, Palo Alto Networks, Broadcom (Symantec), and Fortinet rounded out the top five. Revenue associated with single-vendor SASE (vendors that offer both SD-WAN and SSE) grew nearly 70 percent Y/Y and represented over half the SASE market. The top five single-vendor SASE vendors were Cisco, Palo Alto Networks, Fortinet, Netskope, and Versa Networks.

The Dell’Oro Group SASE & SD-WAN Report includes manufacturers’ revenue covering the SASE and Access Router markets.

Channel Impact^®
The data suggests that enterprises are going all-in to improve networking and security services in the mobile- and cloud-first era.