Software-defined Data Centre Market - Forecast (2022 - 2027)

The Global market for Software-defined Data Center is forecast to reach $32.78 billion by 2025, growing at a CAGR of 19.60% from 2020 to 2025. The market growth is attributed to the factors such as increasing structured as well as unstructured data in the market due to fast growing businesses and industries across the globe. Rising growth of advanced technologies such as IoT, AI and many others along with providing increased work productivity across different industries have been acting as major growth factors in the data centre market. Moreover, growing investments from various sectors towards infrastructure development of data centres are also booming the market growth of data centres.

The report: “Software-defined Data Centre Market – Forecast (2020-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the Software-defined Data Center market. 

 

By Solutions: Software-Defined Networking (SDN), Software-Defined Storage (SDS), Software-Defined Computing (SDC) 

 

By Service: Consulting Services, Installation & Support Services, and Professional Services

 

By Organization size: Small & Medium Enterprises, Large Enterprises

 

By End Users: BFSI, IT & Telecom, Media & Entertainment, Public Sector, Retail, Manufacturing, Healthcare, Others

 

By Geography: North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, South korea, Australia and Others), and ROW (Middle East and Africa)

 

• Currently, the various devices and technologies generate a large amount of data every second. The sum of digital data is projected to rise from 3.2 zetta bytes to 40 zetta bytes by the year 2025. The traditional storage solutions are expensive and less effective to house this vast volume of data as contrasted with SDDCs which are more flexible and cost-friendly.
• Hardware cost reduction is the major driving factor in adopting software-defined data centres. Businesses with SDDC no longer need to buy hardware, attain vendor-specific skills to develop and execute it, or handle physical machine enhancements. It streamlines the firm’s resource governance, thus boosting operational productivity.

Software-Defined Networking (SDN) is anticipated to witness the significant market growth during the forecast period 2020-2025. Investment of communication service provides (CSPs) in SDN technologies to simplify network resources, a major decline in CAPEX and OPEX, increasing demand for cloud computing, restructuring of data centres and server virtualization, increasing demand for business connectivity to improve efficiency for field-based networks are the key drivers of business  development.  Compared with traditional networking, SDN offers cost-effective alternatives with greater control. This solution allows for unified network traffic management without user switch settings being modified. SDN enables the delivery of scalable, cost-effective, functional and adaptable options, rendering it suitable for complex applications by the usage of high bandwidth. SDN lets customers handle the maximum degree of transition possible for handling automated workloads on the network, thus growing the sophistication of the network in the data centre and allowing network management integration and orchestration. Such assistance is projected to have a significant effect on business development over the 2020-2025 forecast period.

 

Software defined data centre market is segmented into IT & telecom, media & entertainment, public sector, retail, manufacturing, healthcare, and others on the basis of end user type. IT & Telecomm segment is anticipated to witness the significant market growth during the forecast period 2020-2025.  The market growth is due to a high demand for modernized IT infrastructure. SDDC can be controlled from a single dashboard that enables IT users to monitor inventory, health status, and regulate all server, storage, and networking resources from intelligent applications. Software-defined knowledge allows for automatic distribution of repeatable models that maintain high efficiency, accuracy, and control through the SDDC. Through leveraging Composable Infrastructure in an SDDC, IT can combine capital for any workload – bare metal, virtualized, and containerized to remove silos and minimize over-supply by utilizing software-defined knowledge to gain quicker performance time. SDDC enables superior access, programmability and extensibility of "infrastructure as technology". Business infrastructure, network management, automation and process orchestration systems will offer stand-up infrastructure and supply resources in real-time. This satisfy dynamic workloads and fluctuating market demands, which will allow for DevOps, self-managed IT and agile innovation practices.

North America region held the highest market share and is anticipated to have the significant market growth during the forecast period 2020-2025. The market growth is owing to growing digitization, industrialisation, technological developments, growing data centres and others. Moreover growing IT & Telecom segment in this region is dominating the Software-defined Data Center market. This is due to the increasing digitalisation and introduction of technologies such as artificial intelligence, big data, cloud and others in this field. Such developments pose a high challenge to data storage and availability. Companies are advocating for better data storage, networking and IT infrastructure to effectively cater for demand. In February 2019, the U.S. government launched the Artificial Intelligence Initiative to accelerate AI initiatives in research and growth, expand exposure to government statistics and frameworks for the study, and train staff to respond to the AI age. In March 2019, Cyxtera Technologies extended its data centre operations in Silicon Valley, Houston, Atlanta, New York City and Toronto,   getting a gross business size of more than 2.9 million sq. Ho, Foot. Such expansion and government initiatives leverages a positive impact on the market growth.

 

Rising number of data centres due to growing computing density, business optimization needs, virtualization and others adds up to the market growth. Moreover, the flexibility, modularity, and ease of upgrading are some other factors that tends to boost the market growth.

Ever-increasing challenges to security that attempt to steal sensitive information will hamper business development. In order to monitor applications, SDDC must provide identification and access protection, OS security to safeguard the computer cloud, and data security to secure knowledge at rest and to motion. To render SDDC safe, two-factor authentication should be set wherever possible.

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the Software-defined Data Center market. As of 2019, the market for Software-defined Data Center market is consolidated with the top players including Hewlett-Packard, Lenovo, Cisco Systems, Dell, IBM, Oracle, SGI, and Fujitsu, Hitachi limited and among others.

• In May 2020, Datera and Fujitsu entered into partnership for advancing Enterprise Transition to the Software-Defined Data Centre. This partnership allows Fujitsu to incorporate and sell the Datera Data Services Framework into its product line worldwide, starting with the immediate availability in Japan and Europe.
• In August 2020, Megaport is growing alliance with Cloudflare to increase access to the network. Megaport has dedicated to delivering stable, on-demand Cloudflare access to customers. More precisely, on Megaport 's national software defined network (SDN), the Network as a Service (NaaS) company has confirmed direct connectivity to Cloudflare's regional network for its subscribers. Such alliances contributes to the development of market growth.