German Enterprises Migrate to Software-Defined Networks

Key Terms

software-defined networking technical

Software-defined networking is a way to control and manage computer networks using centralized software rather than relying on many individual hardware switches and routers. Think of it like replacing a room full of manual light switches with a single app that can rewire lighting patterns instantly. It matters to investors because it can cut costs, speed rollouts, improve security updates, and enable more flexible, scalable services that drive revenue and reduce capital spending.

sd-wans technical

A software-defined wide area network (SD‑WAN) is a technology that uses software to intelligently route and manage data across multiple internet and private connections, replacing or augmenting traditional hardware-based WANs. It matters to investors because SD‑WANs can lower networking costs, speed cloud and branch connectivity, and enable easier security and performance updates—factors that affect revenue, margins, and capital spending for firms that provide, use, or depend on network infrastructure.

secure access service edge (sase) technical

A secure access service edge (SASE) is a cloud-delivered approach that combines networking and cybersecurity into a single service to connect users, devices and branch offices to applications wherever they are. Think of it as replacing separate roads and security checkpoints with one managed highway that both directs traffic and screens travelers; for investors, SASE matters because it can drive predictable subscription revenue, lower operational costs, and reduce security risk for customers.

zero trust access technical

Zero trust access is a security approach that treats every user, device and request as untrusted until verified, requiring continuous checks and the least possible access needed to do a task. Think of it like a doorman who checks ID and purpose at every doorway rather than a single lobby pass. For investors, it matters because strong zero trust controls reduce breach risk, regulatory fines and downtime, which can protect revenue, reputation and valuation.

private 5g technical

A private 5G network is a company-owned wireless system that uses 5G technology to give an organization its own fast, secure, and low-delay connection, like having a private highway for data instead of using a public road. Investors care because it can boost productivity, enable automation and new services, reduce risk from public networks, and create revenue or cost-saving opportunities for equipment makers, system integrators, and operators building or supporting these networks.

low earth orbit satellite connectivity technical

A network of communications satellites flying at relatively low altitude (typically a few hundred to about 2,000 kilometers above Earth) that relay data directly to ground stations and user terminals, offering faster response times and broader coverage than traditional high-altitude satellites. Think of it as a cellular network in space: it matters to investors because it can enable new services (global broadband, IoT, maritime/aviation links), change competitive dynamics in telecom and cloud infrastructure, and involves distinctive capital, regulatory and operational risks and opportunities.

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Managed services and AI-assisted operations help organizations address network complexity and specialist skill shortages, ISG Provider Lens^® report says

FRANKFURT, Germany--(BUSINESS WIRE)-- German enterprises are replacing legacy network architectures with software-defined models that support cloud and AI workloads while strengthening resilience and simplifying compliance, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® Network — Software-Defined Solutions and Services report for Germany finds that cloud and multicloud adoption, stricter EU regulations and rising security expectations are reshaping enterprise network strategies. German organizations increasingly need networks that can connect dispersed workforces and sites, support immediate data access and accommodate AI-enabled operations. Software-defined networking (SD-networking) is becoming a foundation for operational resilience rather than a discrete connectivity upgrade.

“German companies are treating the network as a strategic layer for cloud, security and AI adoption,” said Matthias Paletta, director at ISG. “They need architectures that can adapt quickly while giving them greater control over performance, data and compliance.”

Enterprises are using SD-networking to unify public, private and hybrid cloud environments while maintaining existing connectivity where needed. Centralized, policy-based management allows them to route traffic more dynamically and apply consistent controls across distributed environments. This helps organizations improve application performance and preserve control over where data is processed, an increasingly important concern under EU data protection and sovereignty requirements.

Security is becoming part of the network architecture rather than an added layer. German enterprises are converging SD-WANs with security service edge (SSE) or full secure access service edge (SASE) frameworks. These models provide consistent protection for users, data and applications across cloud and branch environments while supporting zero trust access.

To reduce operational workloads and address IT skill shortages, organizations are increasingly using managed or co-managed network services. Providers are taking responsibility for design, implementation and ongoing optimization, helping enterprise teams manage more distributed and security-intensive environments. At the same time, AI-assisted network platforms are adding predictive analytics, automated troubleshooting and self-healing capabilities to improve reliability and reduce downtime, ISG says.

“The next phase of network modernization in Germany is about unifying connectivity, security and operational control,” said Dr. Kenn Walters, lead author of the report. “Providers that can simplify complex environments while supporting sovereignty and resilience will be most relevant to enterprise buyers.”

The report also explores other SD-networking trends in the German market, including the wider use of edge infrastructure and private 5G in industrial settings and growing interest in low Earth orbit satellite connectivity for resilience.

For more insights into the software-defined networking challenges faced by enterprises in Germany, plus ISG’s advice for overcoming them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 36 providers across three quadrants: Managed SD-WAN Services, Edge Technologies and Services (Including Private 5G) and Secure Access Service Edge (SASE).

It names Accenture, Deutsche Telekom, HCLTech, Logicalis and Orange Business as Leaders in all three quadrants. Colt, Computacenter, GTT, Verizon Business, Vodafone and Wipro are named as Leaders in two quadrants each. Axians, BT International, Capgemini, Riedel Networks and Tech Mahindra are named as Leaders in one quadrant each.

In addition, Computacenter, Vodafone and Wipro are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Deutsche Telekom is named the global ISG CX Star Performer for 2026 among software-defined network service and solution providers. Deutsche Telekom earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from Computacenter and Deutsche Telekom.

The 2026 ISG Provider Lens Network — Software-Defined Solutions and Services report for Germany is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260728126406/en/

Press Contacts:

Laura Hupprich, ISG
+1 203-517-3132
laura.hupprich@isg-one.com

Philipp Jaensch, ISG
+49 151 730 365 76
philipp.jaensch@isg-one.com

Source: Information Services Group, Inc.