ISG report: AI drives shift to SD-WAN in Australia, New Zealand
ISG's 2026 report shows ANZ enterprises replacing MPLS with SD-WAN and SASE to support AI and cloud initiatives. Eight providers, including Telstra and BT International, are named Leaders across all three network quadrants. Deutsche Telekom wins global CX Star Performer for 2026.

*this image is generated using AI for illustrative purposes only.
Information Services Group (ISG), a global technology research firm listed on Nasdaq (III), released its 2026 Provider Lens Network — Software-Defined Solutions and Services report for Australia and New Zealand on July 29, 2026. The research indicates that enterprises in the region are fundamentally reshaping their network infrastructure to support hybrid work, cloud-first application strategies, and AI-enabled business processes. Organizations are increasingly viewing the network not as a standalone connectivity layer but as the operational foundation for AI, security, and distributed business operations.
The report identifies a strategic shift away from traditional Multiprotocol Label Switching (MPLS)-centric connectivity. Enterprises are replacing legacy systems with managed Secure Dynamic Wide Area Network (SD-WAN), Secure Access Service Edge (SASE), and Network-as-a-Service (NaaS) models. These new architectures combine automation, service assurance, and integrated security to address heightened cyber risks and regulatory scrutiny. Michael Gale, partner and regional leader at ISG Asia Pacific, stated that organizations now place greater value on platforms that simplify operations while increasing resilience across diverse environments.
Key Architectural Trends
Enterprises in the region are adopting cloud-native software-defined network architectures that separate connectivity from service orchestration and security enforcement. Managed SD-WAN has emerged as a foundational capability, with increased emphasis on integrated SASE, hyperscaler connectivity, digital experience monitoring, and AI-enabled operations.
SASE adoption is evolving from isolated implementations to integrated architectures combining SD-WAN, Zero Trust Network Access, secure web gateways, and cloud firewall services. Yash Jethani, ISG principal analyst and lead author of the report, noted that software-defined architectures help organizations improve performance while addressing sovereignty and security requirements. Providers capable of unifying these capabilities into managed platforms are best positioned to support long-term business outcomes.
Provider Landscape
The report evaluates 34 providers across three quadrants: Managed SD-WAN Services, Edge Technologies and Services (including Private 5G), and Secure Access Service Edge (SASE). Several major firms achieved top-tier status across multiple categories.
| Provider Name | Leadership Status |
|---|---|
| BT International | Leader in all three quadrants |
| Datacom | Leader in all three quadrants |
| NTT DATA | Leader in all three quadrants |
| Optus (Singtel) | Leader in all three quadrants |
| Orange Business | Leader in all three quadrants |
| Spark NZ | Leader in all three quadrants |
| Telstra | Leader in all three quadrants |
| TPG/Vocus (VBI) | Leader in all three quadrants |
| Accenture | Leader in two quadrants |
| DXC Technology | Leader in one quadrant |
| Logicalis | Leader in one quadrant |
| TCS | Leader in one quadrant; Rising Star in one quadrant |
| Tech Mahindra | Leader in one quadrant; Rising Star in one quadrant |
Capgemini, Dicker Data, PCCW Global, TCS, and Tech Mahindra were named Rising Stars in one quadrant each, defined by ISG as companies with a "promising portfolio" and "high future potential." In the area of customer experience, Deutsche Telekom was named the global ISG CX Star Performer for 2026 among software-defined network solution and service providers, earning the highest customer satisfaction scores in ISG’s Voice of the Customer survey.
What the Numbers Show
The data reveals a clear consolidation trend in provider capabilities. Eight providers achieved Leader status across all three evaluated quadrants, indicating that market leaders are successfully bundling SD-WAN, edge technologies, and SASE into unified offerings. This contrasts with specialized players like DXC Technology, Logicalis, TCS, and Tech Mahindra, which hold Leader status in only one quadrant. The emergence of TCS and Tech Mahindra as both Leaders and Rising Stars suggests a dynamic competitive landscape where IT services firms are expanding their networking portfolios to meet integrated demand.
How will the consolidation of SD-WAN, SASE, and Edge technologies by major providers impact pricing structures and vendor lock-in risks for mid-sized enterprises in Australia and New Zealand?
What specific regulatory or data sovereignty challenges might hinder the full adoption of cloud-native network architectures in the APAC region over the next 12 months?
How are 'Rising Star' providers like TCS and Tech Mahindra planning to differentiate their integrated offerings against established leaders who already dominate all three quadrants?

























