Distributed Cloud Networking (DCN) becomes the in-style WAN for AI-based applications

A new Dell’Oro Group report says that DCN will continue to gain momentum as enterprises standardize coherent policy and visibility.
Jan. 27, 2026
4 min read

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. Further, 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.

He added that “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.”

Edge evolution

As more enterprises adopt DCN platforms, there will be an ongoing transition at two points: the cloud/application edge and the user/WAN edge.

As more enterprises adopt application-aware steering, consistent policy, and unified telemetry closer to workloads across public cloud, private data centers, and edge environments, Dell’Oro notes this segment will continue to enjoy ongoing growth.

With application delivery paths becoming more dynamic, buyers are favoring platforms that simplify policy placement, accelerate troubleshooting, and reduce handoffs between networking and security teams.

At the same time, 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.

Enterprises now 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.

Private network focus

The new DCN trend will also affect how enterprises consume network transport to support cloud and AI services.

Enterprises will migrate from public to private network connections, offering more predictable performance. Unlike the unpredictable nature of the public internet, new or what are deemed “optimized middle mile solutions use Software-Defined Cloud Interconnects (SDCI) or private backbones.

The WAN middle mile will serve as the foundation. Middle-mile capabilities offer performance outcomes that depend on more than last-mile access, particularly when critical applications traverse multiple networks and cloud on-ramps.

Dell'Oro said that enterprises and service providers continue to view predictable transport, resiliency, and operational accountability as essential elements, reinforcing the importance of backbone reach, cloud adjacency, and end-to-end service assurance.

Equinix and Lumen offer DCN solutions that can accommodate enterprises’ desire for private connectivity.

Leveraging 270+ AI-ready data centers in 70+ global markets, Equinix's distributed cloud network provides a secure infrastructure for hybrid and multicloud environments. This enables enterprises to deploy virtual network functions, connect directly to major cloud providers, and manage distributed AI workloads with low-latency, private, and software-defined, automated connections. 

Likewise, Lumen’s Edge Private Cloud provides enterprises with a fully managed, pre-built infrastructure for private computing, connected to its global fiber network.

All of Lumen’s cloud connectivity service tie into its ongoing fiber build. The service provider plans to build 34 million new intercity fiber miles by the end of 2028. This is part of Lumen's multibillion-dollar buildout, which will bring its total build to 47 million intercity fiber miles.

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About the Author

Sean Buckley

Sean is responsible for establishing and executing the editorial strategy of Lightwave across its website, email newsletters, events, and other information products.

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