German enterprises are accelerating the shift from legacy network infrastructure to software-defined architectures as cloud adoption, AI workloads and stricter European regulations reshape enterprise networking, according to new research from Information Services Group (ISG).

The 2026 ISG Provider Lens® Network — Software-Defined Solutions and Services report for Germany finds that organizations are modernizing their networks to support distributed workforces, enable faster access to applications and data, and strengthen operational resilience. Rather than viewing software-defined networking as a connectivity upgrade, enterprises increasingly see it as a strategic platform for cloud, security and AI initiatives.

“German companies are treating the network as a strategic layer for cloud, security and AI adoption,” said Matthias Paletta, Director at ISG. “They need architectures that can adapt quickly while giving them greater control over performance, data and compliance.”

The report says organizations are using software-defined networking to unify public, private and hybrid cloud environments while preserving existing connectivity where needed. Centralized, policy-based management enables dynamic traffic routing and consistent governance across distributed environments, improving application performance while helping organizations address European data sovereignty and compliance requirements.

Security is also becoming more tightly integrated with network architecture. Enterprises are increasingly combining SD-WAN with security service edge (SSE) or secure access service edge (SASE) frameworks to provide consistent protection for users, applications and data across cloud, branch and remote environments while supporting zero trust security models.

As enterprise networks become more distributed and security requirements grow more complex, many organizations are also turning to managed and co-managed networking services to reduce operational workloads and address ongoing IT skills shortages. At the same time, AI-enabled network management platforms are introducing predictive analytics, automated troubleshooting and self-healing capabilities designed to improve network reliability and reduce downtime.

“The next phase of network modernization in Germany is about unifying connectivity, security and operational control,” said Dr. Kenn Walters, lead author of the report. “Providers that can simplify complex environments while supporting sovereignty and resilience will be most relevant to enterprise buyers.”

Beyond software-defined networking, the report identifies broader trends shaping the German market, including expanded deployment of edge infrastructure and private 5G for industrial applications, along with growing interest in low Earth orbit (LEO) satellite connectivity to improve network resilience.

The study evaluated 36 providers across three categories: Managed SD-WAN Services, Edge Technologies and Services (Including Private 5G), and Secure Access Service Edge (SASE). Accenture, Deutsche Telekom, HCLTech, Logicalis and Orange Business were recognized as Leaders in all three categories. Colt, Computacenter, GTT, Verizon Business, Vodafone and Wipro earned Leader designations in two categories, while Axians, BT International, Capgemini, Riedel Networks and Tech Mahindra were recognized in one category.

Computacenter, Vodafone and Wipro were also named Rising Stars in one category each for portfolios identified by ISG as having strong future potential.

Deutsche Telekom was recognized as the global ISG CX Star Performer for 2026 among software-defined networking service providers, receiving the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program.

Source: ISG

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