U.K. Enterprises Transform Networks with SDN, Cloud – ISG - August 18, 2025
As companies in the U.K. move networking operations to the cloud, software-defined networking (SDN) is becoming crucial to successful enterprise cloud migrations, according to a new research report published today by Information Services Group (ISG), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens Network – Software-Defined Solutions and Services report for the U.K. finds that organizations are prioritizing network transformation to stay competitive and resilient amid slowing GDP growth, rising operational costs and new U.S. tariffs.
U.K. enterprises are modernizing networks to optimize costs, strengthen supply chain resilience and operate more efficiently in a highly uncertain macroeconomic environment. They are investing in software-defined wide area networks, secure access service edge and 5G to ensure secure, adaptable and scalable network connections. Simultaneously, IT teams are enhancing collaboration tools and digital workplaces to facilitate real-time data access for increasingly remote distributed teams.
Yash Jethani Pradeep, ISG
“U.K. organizations are rethinking their network strategies to focus on measurable outcomes,” said Jon Harrod, partner and network advisory lead at ISG. “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.”
A key trend is the shift toward flexible, business-responsive networks, with companies in the U.K. adopting SD-WAN as a service to enable real-time monitoring and centralized management, the report says. This approach significantly reduces operational complexity and dependence on physical hardware, making it a fundamental part of modern IT strategies. Additionally, the integration of hybrid security solutions is rising, with businesses seeking service providers that offer robust protection across increasingly diverse environments.
Building on this momentum, SDN adoption is expanding among both large companies and small and midsize enterprises in the U.K. They seek the benefits of SDN’s scalable, consumption-based pricing models, which allow organizations to enhance security and performance while minimizing operational costs. SDN also supports advancements in AI, automation, edge computing and 5G, satisfying the need for flexible network architectures. These trends increase engagements with managed service partners that offer expertise in AI-enabled IT support and secure SDN architectures, ISG says.
As SMEs in the U.K. implement software as a service (SaaS) and cloud-native tools, the increasing complexity of IT estates has made organizations more vulnerable to advanced ransomware, phishing and third-party risks. Consequently, there is a heightened focus on zero trust security frameworks, proactive incident response and internal security skills development, the report says.
“U.K. enterprises are leading the way in building resilient, future-ready networks that enable business growth under rapidly changing conditions,“ said Yash Jethani Pradeep, senior manager and principal analyst, ISG Provider Lens Research, and lead author of the report. “As new technologies such as AI reshape organizational structures and cybersecurity needs, SDN service providers are adapting to changing roles and decision-making processes.”
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