The software defined data center is a significant part of a rising wave of software defined technology. The traditional data center industry requires shifting its focus towards the software defined data center to provide customers the flexibility to scale and construct redundancy into their systems that result in reduced overheads. At present, the software defined label is applied to almost everything comprising storage, networks, and security and it is emerging as a promising market of software that performs functions conventionally executed by hardware.
Though the global software defined data center or SDDC industry is in its budding phase, prospects for the market appear quite strong. The global SDDC market is expected to reach approximately US$22 billion in 2015 and it is estimated to value around US$77 billion by 2020. The expected CAGR at which this market will grow is determined to be around 29% between 2015 and 2020.
Continual Innovation in Processing Power and Memory Stimulates Global Market
The SDDC industry assists in the merger of the networking and the server storage, along with the simplified management of all resources using various applications. SDDC also helps in overcoming the obstacles of manageability, flexibility, scalability, and reduced costs that, in turn, aid vendors and service providers to manage their IT infrastructure proficiently.
The regular innovations in processing power and memory coupled with the high demand for resource pooling and manual/customized networking configuration are the key factors driving the global market for software defined data center.
The inherent interoperability of SDDC that enables solutions to be implemented on any hardware irrespective of the manufacturer or the vendor, with an added benefit of multi-tenancy support is another growth driver for this market. The future adoption of SDDC is expected to be in mixed environments and hybrid clouds, with more attention towards software defined security.
SDN Market to Register Highest CAGR during Forecast Period
The global SDDC market has been classified into various solutions such as SDN, SDC, SDS, and application. The SDC market is expected to hold the largest share of the global SDDC market in 2015. However, the SDN market is expected to record the highest CAGR during the period of the forecast period.
In 2015, North America is projected to dominate the SDDC market with approximately 52% share of the total market. Asia Pacific is determined to rank second among others. The European market is likely to rise at the highest CAGR during the forecast period. Over the past year, many new companies have started focusing on SDDC solutions indicating extensive adoption of this technology in this region.
The major players in the SDDC industry are Cisco, IBM, HP, EMC, and Fujitsu. Innovative products roll-out, partnerships, and mergers and acquisitions are the main strategies the major players tend to follow to maintain their position in the global SDDC industry. Furthermore, various approaches such as collaborations, agreements, and joint ventures are also employed by a number of participants to build up their product portfolios and develop their geographic presence.