AI Fuels Demand for Unified Networks in Australia, New Zealand

Cloud-first networking strategies using managed services strengthen enterprise security, edge connectivity and agility, ISG Provider Lens^® report says

SYDNEY, Australia--(BUSINESS WIRE)--Organizations in Australia and New Zealand are modernizing enterprise networking with software-defined architectures as they respond to growing network challenges and look to AI for operational advantages, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® Network — Software-Defined Solutions and Services report for Australia and New Zealand finds that enterprises are reshaping networks to support hybrid work, cloud-first application strategies, AI-enabled business processes and distributed operations while addressing heightened cyber risk and regulatory scrutiny. Organizations are replacing traditional MPLS-centric connectivity with managed SD-WAN, secure access service edge (SASE) and network-as-a-service (NaaS) models that combine automation, service assurance and integrated security.

“ANZ enterprises are no longer treating the network as a standalone connectivity layer,” said Michael Gale, partner and regional leader, ISG Asia Pacific. “They increasingly view it as the operational foundation for AI, security and distributed business. That shift is changing how organizations evaluate network investments, placing greater value on platforms that simplify operations while increasing resilience across diverse environments.”

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 become a foundational capability, with organizations placing greater emphasis on integrated SASE, hyperscaler connectivity, digital experience monitoring and AI-enabled operations. Enterprises are also seeking end-to-end visibility to improve user experience and support consistent performance across cloud and SaaS environments.

SASE adoption is advancing from isolated implementations to integrated architectures that combine SD-WAN, Zero Trust Network Access, secure web gateways and cloud firewall services. Enterprises are placing greater emphasis on transparent policy enforcement, data sovereignty and service resilience as they strengthen cyber resilience across hybrid environments. Unified control frameworks incorporating networking, security and observability are reducing complexity and improving consistency.

Across the region, enterprises with geographically dispersed operations are increasing investments in edge networking, including private 5G. These deployments help to support latency-sensitive applications, resilient site operations and integration of operational technology. Organizations are also expanding API-based orchestration, elastic capacity models and rapid site provisioning to improve scalability and respond more effectively to changing business requirements, ISG says.

“The distinctive characteristics of the ANZ market are shaping the next generation of enterprise networks,” said Yash Jethani, ISG principal analyst and lead author of the report. “Software-defined architectures are helping organizations improve performance and address sovereignty and security requirements. Providers that can unify these capabilities into managed platforms will be best positioned to support long-term business outcomes.”

The report also explores other trends affecting software-defined networking in Australia and New Zealand, including the growing use of AI-assisted network operations and the shift toward consumption-based commercial models that offer elastic bandwidth and contractual flexibility.

For more insights into the network-related issues challenges faced by enterprises in Australia and New Zealand, along with ISG’s advice for overcoming them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 34 providers across three quadrants: Managed SD-WAN Services, Edge Technologies and Services (including Private 5G) and Secure Access Service Edge (SASE).

It names BT International, Datacom, NTT DATA, Optus (Singtel), Orange Business, Spark NZ, Telstra and TPG/Vocus (VBI) as Leaders in all three quadrants. Accenture is named as a Leader in two quadrants, and DXC Technology, Logicalis, TCS and Tech Mahindra are named as Leaders in one quadrant each.

In addition, Capgemini, Dicker Data, PCCW Global, TCS and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Deutsche Telekom is named the global ISG CX Star Performer for 2026 among software-defined network solution and service providers. Deutsche Telekom earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2026 ISG Provider Lens Network — Software-Defined Solutions and Services report for Australia and New Zealand is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.