VeloCloud is a new and emerging SD-WAN vendor based in Mountain View, California, and its SD-WAN solution has been generally available since June 2014. The vendor sells primarily via its channel of VARs, managed service providers (MSPs) and service providers. VeloCloud provides an overlay architecture that is agnostic to WAN transport. The architecture consists of branch edge devices and cloud gateways. Branch traffic goes to other branches or data center edges, via gateways, or directly to the Internet, depending on both destination and business policy. Cloud gateways allow VeloCloud to extend directly into leading SaaS and infrastructure as a service (IaaS) providers, and offer additional Layers 4 through 7 network services (such as cloud firewall, WAN optimization or secure Web gateway).
The vendor's solution is offered primarily on a subscription model (i.e., rent the hardware), and can be delivered as a physical or software appliance. The solution provides firewall, VPN, Layer 3 routing, dynamic multipath steering and deep application recognition capabilities, and supports Ethernet, T1/E1, and 3G/4G/LTE connectivity. Interestingly, VeloCloud and Cisco have partnered to deliver VeloCloud's software running on a Cisco ISR. 1 Multitenant data plane, management and orchestration of components are offered as software or as a cloud-based service.
As a new and emerging vendor, VeloCloud has growing market traction compared with other emerging vendors. It has achieved early successes within midmarket to large organizations looking to reduce WAN costs by migrating from MPLS to multiple broadband Ethernet connections, typically displacing traditional incumbent WAN optimization controller and router solutions along the way. We estimate that this vendor has between 50 and 100 paying customers as of November 2015, primarily composed of organizations in North America.
Midmarket and large enterprises with distributed branch offices that need on-premises devices as well as flexible connectivity to cloud services at operating expenditure pricing should consider VeloCloud. However, enterprises should ensure that latency-sensitive applications are hosted within 25 ms (which usually equates to 1,500 to 2,000 km) of a VeloCloud gateway.
The vendor's solution is offered primarily on a subscription model (i.e., rent the hardware), and can be delivered as a physical or software appliance. The solution provides firewall, VPN, Layer 3 routing, dynamic multipath steering and deep application recognition capabilities, and supports Ethernet, T1/E1, and 3G/4G/LTE connectivity. Interestingly, VeloCloud and Cisco have partnered to deliver VeloCloud's software running on a Cisco ISR. 1 Multitenant data plane, management and orchestration of components are offered as software or as a cloud-based service.
As a new and emerging vendor, VeloCloud has growing market traction compared with other emerging vendors. It has achieved early successes within midmarket to large organizations looking to reduce WAN costs by migrating from MPLS to multiple broadband Ethernet connections, typically displacing traditional incumbent WAN optimization controller and router solutions along the way. We estimate that this vendor has between 50 and 100 paying customers as of November 2015, primarily composed of organizations in North America.
Midmarket and large enterprises with distributed branch offices that need on-premises devices as well as flexible connectivity to cloud services at operating expenditure pricing should consider VeloCloud. However, enterprises should ensure that latency-sensitive applications are hosted within 25 ms (which usually equates to 1,500 to 2,000 km) of a VeloCloud gateway.