Software-Defined Wide Area Network (SD-WAN) Market by Component (Virtual Appliances, Physical Appliances and Hybrid), Deployment Type (On-Premises and Cloud), Technology Service (Managed and Professional), Vertical, and Region - Global Forecast to 2021

 Published On: Dec, 2016 |    No of Pages: 126 |  Published By: MarketsandMarkets | Format: PDF
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Growing demand for Software-Defined Wide Area Network (SD-WAN) applications, strategic business processes, and the need for connected devices are driving the SD-WAN market

The SD-WAN market size is estimated to grow from USD 738.9 million in 2016 to USD 9,066.2 million by 2021, at an estimated Compound Annual Growth Rate (CAGR) of 65.11% during the forecast period. The SD-WAN market is driven by factors, such as increasing need for mobility services, reduced operating expenditures, and the need for simplified network architecture. However, the SD-WAN market lacks in security standards, such as lack of network synchronization and security administration at every level of the network.

Managed services segment is expected to have the largest market share during the forecast period

The managed services segment is expected to have the largest market share during the forecast period. Managed services provide a combination of SDN-WAN and SD-WAN solutions to end-users, by reducing the operational cost and making it more flexible. WAN-based services, such as monitoring and managing real-time traffic are enabled by managed services on deployed network conditions. It further helps in optimizing resources by better planning and facilitating them.

North America is expected to have the largest share of the market, whereas Asia-Pacific (APAC) is projected with the highest growth rate

North America is expected to hold the largest market share in 2016, while APAC is the fastest growing, in terms of CAGR. Factors, such as improving IT infrastructure, growing internet penetration, and increasing number of connected devices are supporting the growth of the SD-WAN market in APAC.

In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with key people. The break-up of profiles of primary participants is given below as:

• By Company Type: Tier 1 – 18%, Tier 2 – 31%, and Tier 3 – 51%
• By Designation: C level – 42%, Director level – 33%, and Others – 25%
• By Region: North America – 47%, Europe – 31%, APAC – 14%, and  the Rest of the World (RoW)- 8%

SD-WAN has enabled improved transport options, including 3G, 4G LTE, MPLS, Wi-Fi, better security, intelligent pathway control, and auto network management. The increasing usage of SD-WAN among Small and Medium Enterprises (SMEs) has further enhanced the demand for it, across many verticals.

The various key SD-WAN vendors and service providers profiled in the report are as follows:

1. Cisco Systems, Inc. (U.S.)
2. Citrix Systems, Inc. (U.S.)
3. Aryaka Networks, Inc. (U.S.)
4. CloudGenix, Inc. (U.S.)
5. Ecessa Corporation (U.S.)
6. Silver Peak Systems, Inc. (U.S.)
7. VeloCloud, Viptela, Inc. (U.S.)
8. Elfiq Networks, Inc. (Canada)
9. Peplink (Hong Kong)
10. Versa Networks (U.S.)

Research Coverage

• The report aims to analyze the SD-WAN market segmented on the basis of components, deployment types, technology services, verticals, and regions.
• It analyzes the opportunities for the stakeholders through the study of the competitive landscape in the SD-WAN market.
• It provides insights on core competencies and key growth strategies of companies in the SD-WAN market.
• The report provides forecast of the market size of the SD-WAN market and its various submarkets with respect to five regions, namely, North America, APAC, Europe, Middle East & Africa (MEA), and Latin America.

Reasons to Buy this Report

From an insight perspective, this research report has focused on various levels of analysis—industry analysis (industry trends), market share analysis of top players, supply chain analysis, and company profiles, which together comprise and discuss the basic views on the competitive landscape, emerging and high-growth segments of the SD-WAN market, high growth regions, and market drivers, restraints, & opportunities.

The report provides insights on the following pointers:

• Market Penetration: Comprehensive information on SD-WAN offered by the top players in the global SD-WAN market

• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the SD-WAN market

• Market Development: Comprehensive information about lucrative emerging markets – the report analyzes the markets for SD-WAN across regions

• Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the global SD-WAN market

• Competitive Assessment: In-depth assessment of market shares, strategies, products, and manufacturing capabilities of the leading players in the global SD-WAN market
TABLE OF CONTENTS

1 INTRODUCTION 13
1.1 OBJECTIVES OF THE STUDY 13
1.2 MARKET DEFINITION 13
1.3 MARKET SCOPE 13
1.3.1 MARKETS COVERED 14
1.3.2 YEARS CONSIDERED FOR THE STUDY 15
1.4 CURRENCY 15
1.5 LIMITATIONS 15
1.6 STAKEHOLDERS 15

2 RESEARCH METHODOLOGY 16
2.1 INTRODUCTION 16
2.2 RESEARCH DATA 17
2.2.1 SECONDARY DATA 17
2.2.1.1 Key data from secondary sources 17
2.2.2 PRIMARY DATA 18
2.2.2.1 Key data from primary sources 18
2.2.2.2 Key industry insights 19
2.3 MARKET SIZE ESTIMATION 20
2.3.1 BOTTOM-UP APPROACH 20
2.3.2 TOP-DOWN APPROACH 21
2.4 MARKET BREAKDOWN AND DATA TRIANGULATION 22
2.5 MARKET FORECAST ASSUMPTIONS 23

3 EXECUTIVE SUMMARY 24

4 PREMIUM INSIGHTS 29
4.1 ATTRACTIVE MARKET OPPORTUNITIES IN THE SD-WAN MARKET 29
4.2 SD-WAN MARKET: BY TYPE 29
4.3 SD-WAN MARKET: BY VERTICAL AND REGION 30
4.4 LIFE CYCLE ANALYSIS, BY REGION (2016) 30

5 MARKET OVERVIEW 32
5.1 INTRODUCTION 33
5.2 EVOLUTION 33
5.3 MARKET SEGMENTATION 34
5.3.1 BY COMPONENT 34
5.3.2 BY DEPLOYMENT TYPE 34
5.3.3 BY TECHNOLOGY SERVICE 35
5.3.4 BY VERTICAL 35
5.4 MARKET DYNAMICS 36
5.4.1 DRIVERS 37
5.4.1.1 Increasing need for mobility services 37
5.4.1.2 Reduced OPEX 37
5.4.1.3 Need for simplified network architecture 37
5.4.2 RESTRAINTS 37
5.4.2.1 Lack of security 37
5.4.3 OPPORTUNITIES 38
5.4.3.1 Improved QoS 38
5.4.3.2 Increase in use of cloud-based technologies 38
5.4.4 CHALLENGES 38
5.4.4.1 Bandwidth provisioning 38
5.5 SD-WAN ECOSYSTEM 38

6 INDUSTRY TRENDS 39
6.1 INTRODUCTION 39
6.2 TECHNOLOGY TRENDS 39
6.2.1 DPI 39
6.2.2 CLOUD MANAGEMENT 39
6.3 STANDARDS 40
6.3.1 DCB 40
6.3.1.1 PFC 802.1Qbb 40
6.3.1.2 Congestion management (802.1Qua) 40
6.3.1.3 Bandwidth management (802.1Qaz) 40
6.3.1.4 DCBX 40
6.3.2 FCOE 41
6.3.3 NVGRE 41
6.3.4 SPB 41
6.3.5 TRILL 41
6.3.6 VEPA 41
6.3.7 MPLS 41
6.3.8 VXLAN 41
6.4 VALUE CHAIN ANALYSIS 42
6.5 STRATEGIC BENCHMARKING 43

7 SD-WAN MARKET ANALYSIS, BY COMPONENT 44
7.1 INTRODUCTION 45
7.2 VIRTUAL APPLIANCES 46
7.3 PHYSICAL APPLIANCES 46
7.4 HYBRID 47

8 SD-WAN MARKET ANALYSIS, BY DEPLOYMENT TYPE 48
8.1 INTRODUCTION 49
8.2 ON-PREMISES 50
8.3 ON-CLOUD 51

9 SD-WAN MARKET ANALYSIS, BY TECHNOLOGY SERVICE 52
9.1 INTRODUCTION 53
9.2 MANAGED SERVICES 54
9.3 PROFESSIONAL SERVICES 55

10 SD-WAN MARKET ANALYSIS, BY VERTICAL 56
10.1 INTRODUCTION 57
10.2 BFSI 58
10.3 RETAIL 58
10.4 HEALTHCARE 59
10.5 GOVERNMENT 60
10.6 IT AND TELECOM 60
10.7 MANUFACTURING 61
10.8 OTHERS 62

11 GEOGRAPHIC ANALYSIS 63
11.1 INTRODUCTION 64
11.2 NORTH AMERICA 65
11.3 EUROPE 71
11.4 APAC 75
11.5 MEA 81
11.6 LATIN AMERICA 83

12 COMPETITIVE LANDSCAPE 85
12.1 VENDOR DIVE OVERVIEW 85
12.2 SD-WAN MARKET: VENDOR COMPARISON 85
12.3 VENDOR INCLUSION CRITERIA 85
12.4 VENDORS EVALUATED 85
12.5 SD-WAN: MNM DIVE –VENDOR COMPARISON 86
12.6 BATTLE FOR MARKET SHARE: PARTNERSHIPS/ COLLABORATIONS/ AGREEMENTS IS THE KEY STRATEGY ADOPTED BY THE MARKET COMPANIES FROM 2014 TO 2016 87
12.6.1 PARTNERSHIPS, COLLABORATIONS, AND AGREEMENTS 89
12.6.2 NEW PRODUCT LAUNCHES AND PRODUCT ENHANCEMENTS 92
12.6.3 BUSINESS EXPANSIONS 93

13 COMPANY PROFILES 94 (Overview, Solutions offered & Recent developments & Key strategies and MnM View)*
13.1 INTRODUCTION 94
13.2 CISCO SYSTEMS, INC. 95
13.3 CITRIX SYSTEMS, INC. 98
13.4 ARYAKA NETWORKS INC. 101
13.5 CLOUDGENIX INC. 103
13.6 ECESSA CORPORATION 105
13.7 SILVER PEAK SYSTEMS INC. 107
13.8 VELOCLOUD 109
13.9 VIPTELA, INC. 111
*Details on Overview, Solutions offered & Recent developments & Key strategies and MnM View might not be captured in case of unlisted companies.
13.10 KEY INNOVATORS 112
13.10.1 ELFIQ NETWORKS INC. 112
13.10.2 PEPLINK 113
13.10.3 VERSA NETWORKS 113

14 APPENDIX 115
14.1 INSIGHTS OF INDUSTRY EXPERTS 115
14.2 DISCUSSION GUIDE 116
14.3 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 118
14.4 INTRODUCING RT: REAL-TIME MARKET INTELLIGENCE 120
14.5 AVAILABLE CUSTOMIZATIONS 122
14.6 RELATED REPORTS 122
14.7 AUTHOR DETAILS 123

LIST OF TABLES

TABLE 1 SD-WAN MARKET SIZE, BY COMPONENT, 2014–2021 (USD MILLION) 25
TABLE 2 SD-WAN MARKET SIZE, BY TECHNOLOGY SERVICE, 2014–2021 (USD MILLION) 26
TABLE 3 SD-WAN MARKET SIZE, BY VERTICAL, 2014–2021 (USD MILLION) 27
TABLE 4 SD-WAN MARKET SIZE, BY COMPONENT, 2014–2021 (USD MILLION) 45
TABLE 5 VIRTUAL APPLIANCES: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 46
TABLE 6 PHYSICAL APPLIANCES: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 46
TABLE 7 HYBRID: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 47
TABLE 8 SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2014–2021 (USD MILLION) 49
TABLE 9 ON-PREMISES: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 50
TABLE 10 ON-CLOUD: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 51
TABLE 11 SD-WAN MARKET SIZE, BY TECHNOLOGY SERVICE, 2014–2021 (USD MILLION) 53
TABLE 12 MANAGED SERVICES: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 54
TABLE 13 PROFESSIONAL SERVICES: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 55
TABLE 14 SD-WAN MARKET SIZE, BY VERTICAL, 2014–2021 (USD MILLION) 57
TABLE 15 BFSI: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 58
TABLE 16 RETAIL: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 59
TABLE 17 HEALTHCARE: SD-WAN NETWORKS MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 59
TABLE 18 GOVERNMENT: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 60
TABLE 19 IT AND TELECOM: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 60
TABLE 20 MANUFACTURING: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 61
TABLE 21 OTHERS: SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 62
TABLE 22 SD-WAN MARKET SIZE, BY REGION, 2014–2021 (USD MILLION) 65
TABLE 23 NORTH AMERICA: SD-WAN MARKET SIZE, BY TYPE, 2014–2021 (USD MILLION) 67
TABLE 24 NORTH AMERICA: SD-WAN MARKET SIZE, BY COMPONENT, 2014–2021 (USD MILLION) 67
TABLE 25 NORTH AMERICA: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2014–2021 (USD MILLION) 67
TABLE 26 NORTH AMERICA: SD-WAN MARKET SIZE, BY TECHNOLOGY SERVICE, 2014–2021 (USD MILLION) 68
TABLE 27 NORTH AMERICA: SD-WAN MARKET SIZE, BY VERTICAL, 2014–2021 (USD MILLION) 68
TABLE 28 NORTH AMERICA: SD-WAN MARKET SIZE, BY COUNTRY, 2014–2021 (USD MILLION) 68
TABLE 29 U.S.: SD-WAN MARKET SIZE, BY TYPE, 2014–2021 (USD MILLION) 69
TABLE 30 U.S.: SD-WAN MARKET SIZE, BY COMPONENT, 2014–2021 (USD MILLION) 69
TABLE 31 U.S.: SD-WAN MARKET, BY DEPLOYMENT TYPE, 2014–2021 (USD MILLION) 69
TABLE 32 U.S.: SD-WAN MARKET, BY TECHNOLOGY SERVICE, 2014–2021 (USD MILLION) 70
TABLE 33 U.S.: SD-WAN MARKET SIZE, BY VERTICAL, 2014–2021 (USD MILLION) 70
TABLE 34 EUROPE: SD-WAN MARKET SIZE, BY TYPE, 2014–2021 (USD MILLION) 71
TABLE 35 EUROPE: SD-WAN MARKET SIZE, BY COMPONENT, 2014–2021 (USD MILLION) 71
TABLE 36 EUROPE: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2014–2021 (USD MILLION) 72
TABLE 37 EUROPE: SD-WAN MARKET SIZE, BY TECHNOLOGY SERVICE, 2014–2021 (USD MILLION) 72
TABLE 38 EUROPE: SD-WAN MARKET SIZE, BY VERTICAL, 2014–2021 (USD MILLION) 72
TABLE 39 EUROPE: SD-WAN MARKET SIZE, BY COUNTRY, 2014–2021 (USD MILLION) 73
TABLE 40 U.K.: SD-WAN MARKET SIZE, BY TYPE, 2014–2021 (USD MILLION) 73
TABLE 41 U.K.: SD-WAN MARKET SIZE, BY COMPONENT, 2014–2021 (USD MILLION) 73
TABLE 42 U.K.: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2014–2021 (USD MILLION) 74
TABLE 43 U.K.: SD-WAN MARKET SIZE, BY TECHNOLOGY SERVICE, 2014–2021 (USD MILLION) 74
TABLE 44 U.K.: SD-WAN MARKET SIZE, BY VERTICAL, 2014–2021 (USD MILLION) 74
TABLE 45 APAC: SD-WAN MARKET SIZE, BY TYPE, 2014–2021 (USD MILLION) 77
TABLE 46 APAC: SD-WAN MARKET SIZE, BY COMPONENT, 2014–2021 (USD MILLION) 77
TABLE 47 APAC: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2014–2021 (USD MILLION) 77
TABLE 48 APAC: SD-WAN MARKET SIZE, BY TECHNOLOGY SERVICE, 2014–2021 (USD MILLION) 78
TABLE 49 APAC: SD-WAN MARKET SIZE, BY VERTICAL, 2014–2021 (USD MILLION) 78
TABLE 50 APAC: SD-WAN MARKET SIZE, BY COUNTRY, 2014–2021 (USD MILLION) 78
TABLE 51 CHINA: SD-WAN MARKET SIZE, BY TYPE, 2014–2021 (USD MILLION) 79
TABLE 52 CHINA: SD-WAN MARKET SIZE, BY COMPONENT, 2014–2021 (USD MILLION) 79
TABLE 53 CHINA: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2014–2021 (USD MILLION) 79
TABLE 54 CHINA: SD-WAN MARKET SIZE, BY TECHNOLOGY SERVICE, 2014–2021 (USD MILLION) 80
TABLE 55 CHINA: SD-WAN MARKET SIZE, BY VERTICAL, 2014–2021 (USD MILLION) 80
TABLE 56 MEA: SD-WAN MARKET SIZE, BY TYPE, 2014–2021 (USD MILLION) 81
TABLE 57 MEA: SD-WAN MARKET SIZE, BY COMPONENT, 2014–2021 (USD MILLION) 81
TABLE 58 MEA: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2014–2021 (USD MILLION) 81
TABLE 59 MEA: SD-WAN MARKET SIZE, BY TECHNOLOGY SERVICE, 2014–2021 (USD MILLION) 82
TABLE 60 MEA: SD-WAN MARKET SIZE, BY VERTICAL, 2014–2021 (USD MILLION) 82
TABLE 61 LATIN AMERICA: SD-WAN MARKET SIZE, BY TYPE, 2014–2021 (USD MILLION) 83
TABLE 62 LATIN AMERICA: SD-WAN MARKET SIZE, BY COMPONENT, 2014–2021 (USD MILLION) 83
TABLE 63 LATIN AMERICA: SD-WAN MARKET SIZE, BY DEPLOYMENT TYPE, 2014–2021 (USD MILLION) 83
TABLE 64 LATIN AMERICA: SD-WAN MARKET SIZE, BY TECHNOLOGY SERVICE, 2014–2021 (USD MILLION) 84
TABLE 65 LATIN AMERICA: SD-WAN MARKET SIZE, BY VERTICAL, 2014–2021 (USD MILLION) 84
TABLE 66 EVALUATION CRITERIA 85
TABLE 67 PARTNERSHIPS, COLLABORATIONS, AND AGREEMENTS, 2015-2016 89
TABLE 68 NEW PRODUCT LAUNCHES AND PRODUCT ENHANCEMENTS, 2014-2016 92
TABLE 69 NEW PRODUCT LAUNCHES AND PRODUCT ENHANCEMENTS, 2016 93

LIST OF FIGURES

FIGURE 1 GLOBAL SD-WAN MARKET: RESEARCH DESIGN 16
FIGURE 2 MARKET SIZE ESTIMATION METHODOLOGY: BOTTOM-UP APPROACH 20
FIGURE 3 MARKET SIZE ESTIMATION METHODOLOGY: TOP-DOWN APPROACH 21
FIGURE 4 DATA TRIANGULATION 22
FIGURE 5 SD-WAN MARKET SNAPSHOT, BY COMPONENT, 2016 VS. 2021 25
FIGURE 6 SD-WAN MARKET SNAPSHOT, BY TECHNOLOGY SERVICE, 2016 VS. 2021 26
FIGURE 7 SD-WAN MARKET SNAPSHOT, BY VERTICAL, 2016 VS. 2021 26
FIGURE 8 NORTH AMERICA HAS THE LARGEST SHARE IN THE GLOBAL SD-WAN MARKET, 2016 27
FIGURE 9 INCREASING FOCUS ON REMOTE LOCATION NETWORK CONNECTIVITY IS BOOSTING THE SD-WAN MARKET 29
FIGURE 10 PHYSICAL APPLIANCES SEGMENT IS EXPECTED TO HOLD THE LARGEST MARKET SHARE IN THE SD-WAN MARKET DURING THE FORECAST PERIOD (2016–2021) 29
FIGURE 11 AMONG VERTICALS, THE RETAIL VERTICAL ACCOUNTED FOR THE LARGEST SHARE IN THE SD-WAN MARKET IN 2016 30
FIGURE 12 NORTH AMERICA IS EXPECTED TO BE IN THE HIGH GROWTH PHASE IN 2016 30
FIGURE 13 EVOLUTION OF THE SD-WAN MARKET 33
FIGURE 14 SD-WAN MARKET SEGMENTATION: BY COMPONENT 34
FIGURE 15 SD-WAN MARKET SEGMENTATION: BY DEPLOYMENT TYPE 34
FIGURE 16 SD-WAN MARKET SEGMENTATION: BY TECHNOLOGY SERVICE 35
FIGURE 17 SD-WAN MARKET SEGMENTATION: BY VERTICAL 35
FIGURE 18 SD-WAN MARKET: DRIVERS, RESTRAINTS, OPPORTUNITIES, AND CHALLENGES 36
FIGURE 19 VALUE CHAIN ARCHITECTURE: SD-WAN MARKET 42
FIGURE 20 COMPANIES ADOPTED DIFFERENT STRATEGIES TO GAIN COMPETITIVE EDGE IN THE SD-WAN MARKET FROM 2014 TO 2016 43
FIGURE 21 HYBRID SEGMENT IS EXPECTED TO GROW AT THE HIGHEST CAGR DURING THE FORECAST PERIOD 45
FIGURE 22 ON-CLOUD DEPLOYMENT IS EXPECTED TO DOMINATE THE MARKET IN 2021 49
FIGURE 23 MANAGED SERVICES IS EXPECTED TO DOMINATE THE MARKET IN 2021 53
FIGURE 24 MANUFACTURING VERTICAL IS EXPECTED TO GROW AT THE HIGHEST CAGR DURING THE FORECAST PERIOD 57
FIGURE 25 GEOGRAPHIC SNAPSHOT (2016–2021): APAC IS EXPECTED TO GROW AT THE HIGHEST CAGR DURING THE FORECAST PERIOD 64
FIGURE 26 APAC REGION IS EXPECTED TO GROW AT HIGHEST CAGR IN THE FORECAST PERIOD 65
FIGURE 27 NORTH AMERICA: MARKET SNAPSHOT 66
FIGURE 28 APAC: MARKET SNAPSHOT 76
FIGURE 29 BUSINESS STRATEGY ANALYSIS 86
FIGURE 30 PRODUCT OFFERINGS ANALYSIS 86
FIGURE 31 MARKET EVALUATION FRAMEWORK: SIGNIFICANT PARTNERSHIPS, COLLABORATIONS, AND AGREEMENTS HAVE FUELED GROWTH OF THE SD-WAN MARKET 88
FIGURE 32 CISCO SYSTEMS, INC.: COMPANY SNAPSHOT 95
FIGURE 33 CISCO SYSTEMS, INC.: SWOT ANALYSIS 96
FIGURE 34 CITRIX SYSTEMS, INC.: COMPANY SNAPSHOT 98
FIGURE 35 CITRIX SYSTEMS INC.: SWOT ANALYSIS 100

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