January 21, 2026 | Press Release

Distributed Cloud Networking (DCN) Is the New WAN for AI-Era Applications

According to Dell’Oro Group

Set to Hit $21 B in 2029 as Enterprises Standardize Coherent Policy and Visibility

REDWOOD CITY, Calif. 
According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, worldwide Distributed Cloud Networking (DCN) revenue is projected to reach $21 B by 2029, representing a compound annual growth rate (CAGR) of 30 percent over the five-year forecast period. DCN captures the platforms and services that deliver consistent connectivity, policy enforcement, and telemetry from users, across the WAN, to distributed cloud and application edges spanning branch sites, data centers, and public clouds, and the category is gaining relevance as hybrid architectures and AI-era traffic patterns increase the operational penalty for fragmented control planes.

“DCN buyers are moving beyond isolated upgrades and are prioritizing architectures that reduce operational seams across connectivity, security, and telemetry so that incident response and change control can follow a single thread,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group. “What makes DCN distinct is that it links user-to-application experience with where policy and visibility are enforced, which is why application-adjacent controls are now influencing WAN decisions that used to be driven primarily by transport,” said Sanchez.

Additional highlights from the Distributed Cloud Networking five-year forecast report include:

• Cloud/Application Edge: This pillar remains the fastest-growing part of DCN as enterprises push application-aware steering, consistent policy, and unified telemetry closer to workloads across public cloud, private data center, and edge environments. As application delivery paths become more dynamic, buyers are favoring platforms that simplify policy placement, accelerate troubleshooting, and reduce handoffs between networking and security teams.
• WAN Middle Mile: Middle-mile capabilities remain foundational because performance outcomes depend on more than last-mile access, particularly when critical applications traverse multiple networks and cloud on-ramps. Enterprises and service providers continue to prioritize predictable transport, resiliency, and operational accountability, reinforcing the importance of backbone reach, cloud adjacency, and end-to-end service assurance.
• User/WAN Edge: The user edge continues to evolve as secure access, SD-WAN, and policy enforcement converge, creating demand for consistent user-to-application controls that remain portable across sites, remote users, and cloud resources. Buyers increasingly expect the user edge to integrate tightly with middle-mile and application-edge capabilities so that policy intent and experience telemetry remain coherent from entry point to workload.

About the Report
Dell’Oro Group’s Distributed Cloud Networking Advanced Research Report provides an in-depth analysis of the evolving enterprise WAN landscape. The report defines Distributed Cloud Networking as an end-to-end market spanning Cloud/Application Edge, WAN Middle Mile, and User/WAN Edge, where buyers increasingly prioritize coherent operating models across networking, security, and operations. The report includes forecasts through 2029, vendor analysis, and insights into market dynamics, including the shift to service-centric architectures and the integration of multi-cloud networking, WANaaS, and SASE solutions. It also includes segment-level outlooks, key growth drivers and inhibitors, and competitive assessment of vendor participation paths in this emerging market.