Virtual Networking Market Share

Introduction: Navigating the Competitive Landscape of Virtual Networking

The virtual network is experiencing a level of competition never before seen, driven by a combination of the rapid development of technology, regulatory change and a growing demand for continuous availability of services. The main players, including the original equipment manufacturers, IT systems integrators, IT service providers and a new generation of artificial intelligence companies, are aiming for leadership by deploying technology-driven differentiators such as data analytics, automation and IoT integration. These enable not only enhanced operational efficiency, but also a more bespoke experience for the end-user. This in turn can help with market positioning. As organisations become more interested in greener, more sustainable practices, the vendors are also aligning their offerings with this trend. There are also opportunities for growth, particularly in Asia-Pacific and North America. These will be driven by strategic developments in the years 2024–25. These will be closely watched by the C-level executives. To take full advantage of the evolving landscape, they will need to be aware of the developments and be prepared to respond.

Competitive Positioning

Full-Suite Integrators

These vendors offer comprehensive solutions that integrate various networking functionalities into a single platform.

Specialized Technology Vendors

These vendors focus on niche technologies that enhance specific aspects of virtual networking.

Infrastructure & Equipment Providers

These vendors provide the hardware and infrastructure necessary for building and maintaining virtual networks.

Emerging Players & Regional Champions

• — Cloudflare (USA): a full suite of virtual network solutions including secure access services edge (SASE) and zero trust network access (ZTNA). Challenges established vendors such as Cisco and Palo Alto. Recently won contracts from several educational institutions to enhance their remote learning.
• Mikrotik (Latvia) - specializes in the production of cheap and effective network hardware and software, especially for small and medium-sized businesses. Recently, it has launched a large-scale deployment in Eastern Europe, supplying robust virtual networks that compete with the more established ones, by focusing on cost-effectiveness and simplicity.
• Cato (Israel): Cato specializes in cloud-based access and SD-WAN solutions. The company recently expanded its customer base in the Asia-Pacific region and is challenging the traditional SD-WAN players by offering security features that are more attractive to companies looking for a comprehensive solution.
• Aryaka (USA): Provides managed SD-WAN and NaaS (Network as a Service) solutions. Recently, Aryaka partnered with a number of large companies to help them simplify their global networks. It competes with established SD-WAN players with its own global private network and its application performance optimization.

Regional Trends: In 2023, the virtual network solutions will be adopted with great vigor in North America and Europe, thanks to the emergence of the remote workforce and the digital transformation. Asia-Pacific will also be a key growth area, especially for cloud-based network solutions, thanks to the increasing need for a business efficiency. The technological specialization will move towards the integration of security features in the network solutions, as companies focus on the secure access and data protection.

Collaborations & M&A Movements

• Cisco and Microsoft have entered into a partnership to combine their respective virtual networking solutions, aiming to improve the interoperability and the user experience in hybrid working environments, thereby strengthening their respective positions in the enterprise market.
• VMware acquired the startup Octarine to bolster its security offerings in the virtual networking space, enhancing its market share by providing advanced security features for cloud-native applications.
• Zoom and Slack announced a collaboration to improve their integration capabilities, allowing users to seamlessly connect virtual meetings with team communications, which is expected to increase user engagement and retention in a competitive market.

Competitive Summary Table

Conclusion: Navigating the Virtual Networking Landscape

The virtual network market in 2023 is characterized by fragmentation and a large number of players. The established companies are relying on their brand and existing customers, while the new entrants are focusing on innovation, especially on artificial intelligence, automation and the environment. The regional trends show a growing demand for flexible network solutions, especially in North America and Asia-Pacific, where digital transformation is accelerating. Artificial intelligence, automation and the environment are the key to enhancing the customer experience and efficiency. The leaders in the future will be those who are able to adapt to changing customer needs and integrate sustainable practices. Strategic positioning and technological investment are therefore critical to success.