A growing number of German enterprises are looking to software-defined (SD) networks to reduce both the complexity and risk of migrating to single or multicloud environments, according to a new research report published today by Information Services Group (ISG), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Network – Software Defined Solutions and Services report for Germany finds SD-networking-enabled solutions are available as fully managed or co-managed services to reduce overall costs and implementation risks. With SD networks, German enterprises are able to improve overall customer experience by responding quickly and seamlessly to customer inquiries and by rapidly providing new services as required, the ISG report says. In addition, enabling SD networks can increase security across all networks, including cloud-based ones, ISG says.

According to the ISG report, when it comes to embracing fully managed services, Germany trails the U.S. and the Asia Pacific region. Many German enterprises still prefer adopting a DIY solution, where the enterprise manages the entire network or co-manages a solution that enables network and security operations to be shared between the provider and the enterprise. Whether they are managed or co-managed, SD network deployments and SASE adoption in Germany are accelerating, ISG says.

Germany’s powerful small and midsized enterprise (SME) market is at the forefront of adopting SD-WAN, the ISG report says. Because they are more likely to have a distributed workforce, German SMEs will often rely on cloud-based solutions for communication and collaboration. According to the ISG report, SD networks are seen by these companies as foundational in creating future-safe, cloud-first enterprise networks and implementing advanced security integrations.