Why MSPs are Doubling Down on SD-WAN & SASE

Small and mid-sized enterprises (SMEs) are rapidly adopting Software-Defined WAN and cloud-based security (SASE) solutions, driving a surge in demand ripe for managed service providers (MSPs). Below, we break down the key numbers fueling partner interest and why now is the time to act.

A Market on Fire

Analysts are projecting explosive growth in the SD-WAN and SASE space, especially for the SME segment. Industry forecasts show annual growth rates around 25-30% for SD-WAN over the next several years (1/2). In practical terms, the market could quadruple in size by 2030. Global SD-WAN spend is estimated around $9 B in 2025, on track to reach $35+ B by 2030 (3). This explosion is fueled by cloud migration and the hybrid work boom: businesses need better networks, and they need them fast.

Meanwhile, North America leads the charge, accounting for roughly half of the worldwide SD-WAN/SASE revenue (4). For US channel partners, high growth = high reward as the lion’s share of new SD-WAN spending is happening right in your backyard. Early entrants can grab a major slice of a fast-expanding revenue pool.

It’s not just networking, cloud-based cybersecurity is on a similar trajectory powered by Secure Access Service Edge (SASE). A recent market study valued the global SASE market at about $4 B in 2024 and projects roughly 27% CAGR reaching about $17 B by 2030 (5). North America also dominates here with an estimated 46% share of the SASE market (6). This underscores that integrated SD-WAN + security services represent a booming frontier. Partners who offer cloud-managed SD-WAN today are well positioned to upsell full SASE solutions as client needs evolve, capturing even more value.

Managed Services: The Channel Sweet Spot

Perhaps the most compelling insight for channel partners: the vast majority of businesses prefer to consume SD-WAN as a managed service, not DIY. In fact, a Masergy/Altman Solon study found that only 23% of companies use a “do-it-yourself” SD-WAN approach, whereas 77% opt for fully managed or co-managed solutions (7). The 2024 TeleGeography WAN Manager Survey confirms this trend by showing the DIY route remains the least popular across all business sizes. Even among smaller firms, roughly 4 out of 5 prefer to have a provider involved rather than building SD-WAN in-house.

Why Do Customers Want Managed SD-WAN?

It boils down to simplicity and expertise. Businesses recognize that designing, integrating, and running a distributed WAN (often across dozens of sites) is complex and resource-intensive. Managed SD-WAN services offer a turnkey delivery experience where the certified solution provider handles the edge devices, network links, 24/7 monitoring, SLAs, and even security integration. This allows the customer to focus their precious IT resources on core business initiatives instead of becoming network engineers. As one industry analyst noted, about “30% of companies that attempt SD-WAN DIY find it very difficult,” whereas an MSP can make it “very easy” for them (8). No wonder even smaller enterprises are eager to have a partner carry the load. In fact, in the 500-1000 employee range, 76% of companies with SD-WAN use an MSP to manage it!

Crucially, this preference extends to SASE as well. A 2023 Frost & Sullivan study found “an MSP is the most preferred partner to implement SASE” for businesses of all sizes(9). This survey found that over 57% of small businesses relied on an MSP for their SASE rollout rather than handling it internally. The takeaway: whether it’s SD-WAN or the broader SASE framework, customers are looking to the channel to design, deliver, and manage these solutions.

All of this is good news for MSPs and integrators, the market wants managed services! It means recurring revenue is there for the taking. By offering cloud-managed SD-WAN and SASE, partners can lock in long-term contracts and monthly recurring margins. It’s a classic win-win: the client gets a hassle-free solution with expert support, and the provider gets a steady, compounding revenue stream. If you can manage it for them, most companies will gladly pay you to do so. That’s services revenue straight to your bottom line. Meanwhile, if you don’t offer managed SD-WAN, your clients will find someone else who does.

Almost Ubiquitous – Don’t Miss the Wave

SD-WAN isn’t a niche, early-adopter technology anymore, it’s becoming standard infrastructure for distributed businesses. As of 2024, roughly 90% of companies are either using SD-WAN or in the process of adopting it, according to TeleGeography’s 2024 WAN Manager Survey. Back in 2021, an Altman Solon study similarly predicted adoption would reach 92% of all companies by 2026, and we’re now well on the way to that reality.

For MSPs, this is a case of opportunity now, risk later. In the near term, SD-WAN/SASE is a high-growth service you can lead with to differentiate your portfolio and capture new clients. It’s still a cutting-edge offering that many customers are actively researching or rolling out for the first time, so you can be the expert that guides them.

But within a few short years, having SD-WAN and SASE capabilities will be table stakes. If your MSP business isn’t on this train, you risk getting left behind. If a prospect asks about cloud-network solutions and you don’t have a strong SD-WAN/SASE offering, they’ll likely turn to a competitor who does. The window for being an early mover is open now; it won’t be open forever. We’re at the point where not offering SD-WAN is a competitive disadvantage.

The fear of missing out is real. Every quarter, more businesses are choosing their SD-WAN and SASE providers. Partners who establish themselves now will reap the rewards of customer loyalty and an installed base. Those who wait may find the market crowded or their role minimized.