Using Windows Update for servicing updates is not an option for business customers, especially at large scale enterprise due to missing task sequence functionality. Small and medium size business customers using Pro and higher SKUs can use WUfB and WSUS for updating, but the missing task sequence will complicate the update.
You will run into situation where you need to update a driver or software before being able to upgrade. Or get into a situation where you need to do additional configuration steps and clean-up after in-place upgrade.
SCCM and third-party solutions (such as LANDesk, HEAT, and many other) are the best solution for serving updates and in-place upgrades. Like with WSUS, Quality and feature update content distributed from on premises, such as configuration manager DPs, will significantly reduce use on WAN bandwidth. Upgrades can be extended using a scripted task sequence, and you get extended software update capabilities in addition.
BranchCache and solution-specific peer delivery like peer SCCM delivery (client peer cache support for express installation files for Windows 10 and Office 365 available with SCCM 1706 and newer versions) should be enabled to reduce bandwidth/workload on your servers. There is also a new option in SCCM 1702 and newer for downloading express packages for Windows 10 only:
When selecting this option it will only download express files for Windows 10 and therefore the needed storage amount on your WSUS will not excessively raise like in the WSUS standalone scenario described in the paragraph before.
For building update and servicing rings you need to use the SCCM or solution specific techniques, like SCCM collections. SCCM will ignore the GPO settings for Quality Updates and feature updates.
For deploying wipe and load or in-place upgrade installations of Windows 10 an updated / corresponding version of the Windows 10 Assessment and Deployment Kit (ADK) with newest Windows PE should be used if no exceptions are made by the Product Group. Please review the SCCM supportable matrix with every new Windows 10 release and every Semi-Annual Channel update for minimum version of SCCM needed. A always updated matrix can be found at https://docs.microsoft.com/en-us/sccm/core/plan-design/configs/support-for-windows-10.
At the time of writing this book SCCM team still planning with three releases a year and the supportable matrix did not include Windows 10 1709 yet, but should be updated short before, latest at RTM/ General Availability (GA) of Windows 10 1709. If no serious issues or blockers are detected until release of 1709 it can be expected to get a backwards compatible for SCCM 1706 and full supported for SCCM 1710:
Other third-party solutions like LANDesk, HEAT, and many others already announced to update their deployment solutions at least one to two times a year to keep up with Windows 10 and fully support the deployment. For example LANDesk will release yearly major releases called LANDESK Management Suite 2017.1. Next updated version in 2017 will be 2017.2 and so on. A support matrix for LANDesk and Windows 10 can be found at https://community.ivanti.com/docs/DOC-23848.
Please review the solution relevant support matrices and plan to update your deployment solution also in a higher cadence than with former operating systems.