U.K. Enterprises Embrace SDN and Cloud to Enhance Resilience and Cost Efficiency Amid Economic Uncertainty

U.K. enterprises are transforming their network operations through software-defined networking (SDN) and cloud-first strategies, as highlighted in a new research report by Information Services Group (ISG). The report, titled "Network – Software-Defined Solutions and Services," emphasizes the growing importance of network resilience, security, and cost efficiency in the face of economic uncertainties and rising operational costs. The 2025 ISG Provider Lens® report reveals that U.K. organizations are rethinking their network strategies to achieve measurable outcomes. Central to this transformation is the adoption of SDN, which offers enhanced visibility and flexibility, enabling better resource optimization and cost control. This strategic shift is particularly relevant given the challenging macroeconomic landscape, including slowed GDP growth and new U.S. tariffs. Companies in the U.K. are modernizing their networks to improve security and performance, and to operate more efficiently. Key investments include software-defined wide area networks (SD-WANs), secure access service edge (SASE), and 5G technologies. These solutions help create secure, adaptable, and scalable network connections, which are essential for supporting remote and distributed teams and ensuring real-time data access. One of the most notable trends is the move towards SD-WAN as a service, which streamlines network management through centralized control and real-time monitoring. This approach reduces operational complexity and reliance on physical infrastructure, making it a cornerstone of contemporary IT strategies. Additionally, the integration of hybrid security solutions is on the rise, with businesses looking for providers that can offer comprehensive protection across diverse network environments. SDN adoption is expanding among both large corporations and small and medium-sized enterprises (SMEs). This is driven by the scalable, consumption-based pricing models of SDN, which allow organizations to enhance security and performance while reducing operational costs. SDN’s support for AI, automation, edge computing, and 5G further meets the demand for flexible network architectures. However, the increasing complexity of IT environments has made U.K. companies more vulnerable to advanced threats such as ransomware and phishing. To mitigate these risks, there is a heightened focus on implementing zero trust security frameworks, developing proactive incident response plans, and building internal security capabilities. According to the report, businesses are partnering with managed service providers that offer expertise in AI-powered IT support and secure SDN architectures. Jon Harrod, partner and network advisory lead at ISG, noted that U.K. organizations are prioritizing cost control and operational efficiency. He stated, "Cost control and operational efficiency are at the top of the enterprise agenda, and SDN solutions offer increased visibility and flexibility to optimize resource use and control spending." Yash Jethani Pradeep, senior manager and principal analyst at ISG, highlighted the leadership of U.K. enterprises in building resilient, future-ready networks. He commented, "U.K. enterprises are leading the way in building resilient, future-ready networks that enable business growth under rapidly changing conditions." The report evaluates 42 providers across four quadrants: Managed SD-WAN Services, SD-Networks Transformation Services (Consulting and Implementation), Edge Technologies and Services (Including Private 5G), and SASE. BT, Colt, Orange Business, Virgin Media O2 Business, and Vodafone are recognized as leaders in all four quadrants. Accenture and Computacenter are leaders in three quadrants, while Deutsche Telekom, GTT, HCLTech, and Verizon Business are leaders in two quadrants. Capgemini and TCS lead in one quadrant each. Computacenter, GTT, Microland, and Tata Communications are identified as Rising Stars, showing promise and high potential. HCLTech stands out for its customer satisfaction, earning the title of global ISG CX Star Performer for 2025 among SDN providers. This achievement is based on the firm's high scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program. Overall, the report underscores the pivotal role of SDN in shaping the future of enterprise networks in the U.K. As new technologies like AI and quantum communications continue to evolve, SDN service providers must adapt to changing roles and decision-making processes to meet the growing demands of their clients. ISG Provider Lens® research is known for its data-driven and real-world experience, making it a valuable resource for both enterprises and service providers. The firm, founded in 2006, has over 1,600 professionals worldwide and is a trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises. ISG’s expertise in AI and technology advisory helps organizations leverage new technologies to achieve operational excellence and faster growth. This strategic investment in SDN and cloud is a clear indication of the U.K. enterprises' commitment to staying competitive and resilient in a rapidly changing technological landscape. The shift towards SDN not only addresses immediate cost and security concerns but also positions these organizations to take advantage of emerging technologies and market opportunities.