Monday Morning Impact – February 3

Published On: February 2, 2025Categories: Buzz

Dell’Oro: Distributed Cloud Networking Market Will Accelerate to $17 Billion

The Distributed Cloud Networking market is projected to grow from $4 billion in 2023 to $17 billion by 2028, achieving a compound annual growth rate (CAGR) of 34 percent, according to the Redwood City, California-based Dell’Oro Group. This growth is driven by enterprises’ transition to hybrid cloud environments, the rise of AI-powered workloads, and the increasing demand for elastic, software-defined networking solutions, according to the company’s research.

“The integration of AI across enterprise IT and the adoption of multi-cloud strategies have created unprecedented challenges for traditional WAN architectures,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group. “Distributed Cloud Networking offers a much-needed reimagining of the enterprise WAN, aligning security, scalability, and performance with modern IT requirements.

“As businesses adapt to AI-driven workloads and hybrid workforce models, the shift to service-centric, cloud-native networking will define the next decade of enterprise transformation. Vendors prioritizing agility, automation, and integration will emerge as market leaders,” added Sanchez.

The report also predicts that multi-cloud networking revenues will reach over $6 billion by 2028, fueled by the complexity of hybrid environments and the need for seamless cloud-to-cloud connectivity. WANaaS will contribute over $8 billion to the market by 2028 as enterprises transition from rigid MPLS architectures to scalable, software-defined middle-mile solutions. The SASE segment within Distributed Cloud Networking is forecasted to grow at a 50 percent CAGR, reflecting enterprises’ prioritization of secure, user-edge connectivity integrated with WANaaS and multi-cloud frameworks.

As-a-service solutions are expected to dominate the market, accounting for 79 percent of total revenues between 2024 and 2028, signaling a clear shift from hardware-centric to subscription-based architectures. While North America remains the largest market, the highest growth rates are expected in EMEA, APAC, and CALA, supported by regional cloud expansion and edge computing investments.

Channel Impact®
The report highlights how Distributed Cloud Networking solutions address the demands of AI-powered workloads, hybrid cloud environments, and edge computing. The report includes forecasts through 2028, vendor analysis, and insights into market dynamics, such as the shift to service-centric architectures and integrating multi-cloud networking, WANaaS, and SASE solutions.

Flexera to Acquire FinOps Business from NetApp

Flexera, a suburban Chicago-based technology spend and risk management company, has entered into a definitive agreement to acquire NetApp’s FinOps business, currently marketed as “Spot by NetApp.”

The combination of Spot’s artificial intelligence (AI) and machine learning (ML)-enabled technology and Flexera’s hybrid cloud position is expected to offer a comprehensive FinOps solution that enhances financial accountability and efficiency in cloud operations, and also aligns with the expanding scope of FinOps which now includes data centers, SaaS applications and public cloud along with the growing FinOps framework that includes software licensing and sustainability. The acquisition will add new capabilities such as Kubernetes cost management and commitment management to Flexera’s FinOps portfolio.

“A tsunami of artificial intelligence applications is exponentially increasing organizations’ consumption of cloud resources,” said Jim Ryan, President and CEO of Flexera. “Yet, we hear from many organizations about the difficulty in answering basic questions like ‘what technology services do we use?’ and ‘why are our cloud bills so high?’. Our acquisition of Spot is the next step in Flexera’s strategic plan to provide organizations with a full panorama of their technology spend and risk across the entire IT ecosystem.”

This decision reflects NetApp’s sharpened focus and underscores our commitment to intelligent data infrastructure and long-term growth opportunities,” said Haiyan Song, Executive Vice President, Intelligent Operations Services, at NetApp. “After a thorough evaluation, it is clear that Flexera’s established expertise and global reach provide the ideal environment for the Spot business to thrive and scale.”

The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals. Financial details of the transaction were not disclosed.

Channel Impact®
The transaction is expected to enable customers and partners to address growing cloud cost and usage needs, enrich FinOps MSP ecosystem and add container cost management to Flexera FinOps portfolio.

Exabeam Names New Global Channel Chief

Exabeam has announced the appointment of Craig Patterson as Global Channel Chief, overseeing the integration of the LogRhythm and Exabeam partner programs, leading global partner strategy, driving ecosystem growth, and expanding the security analytics and SIEM company’s footprint across multiple regions.

“Craig’s proven ability to scale global partner programs makes him the ideal leader to drive our global channel strategy as we aim to capitalize on our momentum post-merger,” said CEO Chris O’Malley. “His strategic approach to channel development, coupled with his cybersecurity experience, will be invaluable as we continue to expand our partner ecosystem and deliver industry-leading security analytics solutions through our channel-first strategy.”

Patterson brings more than 20 years of channel leadership expertise to the table, previously driving revenue growth for Aryaka Networks and Lumen Technologies.

“Joining Exabeam represents an incredible opportunity to shape the future of cybersecurity through channel excellence,” said Patterson. “I look forward to working with our global partners to deliver innovative security solutions that help organizations better detect and respond to threats, reduce risk, and streamline security operations.”

Channel Impact®
Patterson’s deep channel expertise will likely help the company to further strengthen its position in the security space.

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