Weekly Intelligence Brief on SASE and Networking Developments - Week of September 15, 2025

Key Takeaways

• Secure Access Service Edge (SASE) revenue increases 22% to $2.7 billion in Q2 2025.
• Cisco and Palo Alto Networks post significant gains in Software-Defined Wide Area Network (WAN) (SD-WAN) revenue.
• Access Router market declines 15%, while branch networking revenue grows by 13%.
• Aviz Networks emphasizes AI-driven and open-source networking solutions.
• Ericsson integrates agentic Artificial Intelligence (AI) for self-healing in 5G networks.

According to a report by Dell'Oro Group, the SASE market reached $2.7 billion in Q2 2025, a 22 percent increase year-over-year. The growth was driven by enterprises adopting AI-ready branch architectures integrating Software-Defined Wide Area Network (SD-WAN) and Security Services Edge (SSE) technologies.

Mauricio Sanchez, Senior Director at Dell'Oro Group, highlighted SASE's revenue composition, noting that vendors offering both SD-WAN and SSE represent 84 percent of the market due to increased integration effectiveness. SD-WAN revenue exhibited a 27 percent rise, while SSE grew by 19 percent during the same period.

Cisco saw the most notable revenue increase in the SD-WAN segment, with a 52 percent boost attributed to transitions from older Intelligence, Surveillance, and Reconnaissance (ISR) routers to the Catalyst 8k and Meraki SD-WAN offerings. Palo Alto Networks came in second, with a 73 percent growth in SD-WAN revenue and a 35 percent increase in SSE revenue.

Despite a 15 percent decline in the Access Router market, which is attributed to the shift towards SD-WAN solutions, overall branch networking revenue that includes both Access Routers and SD-WAN increased by 13 percent, marking the first double-digit growth since Q3 2023.

Beyond these developments, Aviz Networks reported a focus on AI-driven solutions and open-source technologies to enhance enterprise networking while reducing vendor dependency. Their strategy includes the introduction of the Network Copilot™, aimed at improving network observability through real-time insights.

Simultaneously, Ericsson announced the integration of agentic AI into its NetCloud platform for deploying self-healing technologies in private 5G networks. This step aims to reduce deployment complexity and enhance operational efficiency through automated troubleshooting and enhanced network management.

1. Dell'Oro Group Reports 22% Increase in Q2 2025 SASE Revenue
   Cisco saw a 52% revenue increase in SD-WAN due to shifts from legacy routers, solidifying its position as market leader.
2. SASE revenue rises 22% to $2.7 billion in Q2 2025, Dell’Oro Group reports
   Access Router market dropped 15% while branch networking revenue grew 13%, marking a notable shift in network strategy.
3. Dell'Oro Group Reports 22% Increase in Q2 2025 SASE Revenue
   Cisco saw a 52% revenue increase in SD-WAN due to shifts from legacy routers, solidifying its position as market leader.
4. SASE revenue rises 22% to $2.7 billion in Q2 2025, Dell’Oro Group reports
   Access Router market declined by 15%, but combined networking revenue saw a 13% rise, indicating strategic shifts in networking.
5. Fujitsu, ASML, Mitsubishi Electric: Recent Developments - September 9, 2025
   ASML invests €1.3 billion in a partnership with Mistral AI, aiming to improve product performance through AI applications.
6. Keysight Technologies recognized as 2025 Global Company of the Year in 6G testing
   Frost & Sullivan has awarded Keysight Technologies the title of 2025 Global Company of the Year in the 6G test sector.
7. ASML invests in Mistral AI, Mitsubishi Electric acquires Nozomi Networks
   ASML invests €1.3 billion in Mistral AI to enhance product development through AI.
8. Aviz Networks enhances enterprise networking with AI and open-source technologies
   Aviz Networks outlines its AI-driven focus for enhanced networking solutions in enterprise environments.
9. Ericsson integrates agentic AI into NetCloud platform for self-healing 5G private networks
   Ericsson integrated agentic AI into its NetCloud platform for self-healing 5G networks, aiming to reduce deployment complexity.