We just published the 2022 Market Guide for Multicloud Networking Software (MCNS). In addition to adjusting the name to align with common terminology (formerly Cloud Networking Software), here’s an update as to what is happening in this emerging market:
- Shortform Definition: MCNS enables the design, deployment and operation of a network in multiple public cloud environments. MCNS products enable consistent networking policy, network security, governance and network visibility across multiple cloud environments via a single point of management.
- Enterprises deploy multicloud networking software to address shortcomings in public cloud environments, including a lack of advanced features, and/or consistent management at scale.
- Despite being called “multicloud” networking software, enterprises can (and do) deploy it in single cloud environments.
- The market is small, but growing, from a revenue and customer perspective. We estimate that several thousand customers have deployed MCNS. MCNS vendor revenue was ~$200 million in 2021, and we expect the 30% CAGR through 2026.
- Prediction: By year-end 2023, the number of customers using multicloud networking software (MCNS) for multiple functions will also increase by 30%, to more than 3,000.
- Vendors that compete in the market include: Alkira, Arrcus, Arista, Aviatrix, Cohesive Networks, Cisco, F5, Prosimo and VMware.
- Virtual routers/appliances offered by traditional network vendors often fail to meet the requirements of cloud, platform, and DevOps teams. They fall short in in programmability, integration or flexible licensing. In other words, MCNS Is Not Just vRouters. When clients try to extend these vAppliances beyond basic VPN use cases, they rarely meet their needs. They simply are not “cloudlike”
- The key features of MCNS are included in the diagram below: