Market Highlights

Market Research Future (MRFR)’s new study confirms that the software-defined data center market 2020 can advance at a rate of 16% between 2017 and 2023 (evaluation period), despite the COVID-19 impact. We will provide COVID-19 impact analysis with the report, offering detailed market developments following the coronavirus disease outbreak.

Top Boosters and Key Challenges

Dealing with the massive ramifications of the COVID-19 outbreak, several firms in the worldwide technology industry had to face a huge financial crunch. A majority of them had to shut down their factories or stop traveling to carry out their business. Prominent events such as the Mobile World Congress, Google I/O, Geneva Motor Show and Facebook's F8 were called off because of the lockdown due to the pandemic. Employees are working from home to curb the spread of SARS-CoV-2. With that said, to overcome the challenges posed by the novel coronavirus, enterprises are focusing significantly on return on investment/ROI, business continuity strategies as well as operational resiliency. The situation has resulted in greater demand for stronger software defined data centers, to facilitate better functioning of automation along with preventing the need for manual tasks and provision of rule-based servers.

In fact, COVID-19 has boosted the demand for a better organized IT infrastructure, a rising need for efficient data centers and a higher uptake of cloud computing, which can be highly favorable for the software-defined data center market. Software-defined data center/SDDC has managed to change how enterprises monitor or manage their IT infrastructure, thereby gaining massive attention from world’s leading IT giants. Besides, the SDDC’s ability to efficiently streamline all the data center operations, high flexibility and virtualization also add to its appeal across industries.

The tremendous innovations in cloud computing and the rising need for power efficiency are some other critical growth inducers in the global market for software defined data center. With enterprises continuously spending heavily on cloud services, the demand for SDDC is expected to mount in the following years. Some of the main strategies that the leading firms employ to garner a better market position include acquisitions, partnerships, product launches, and collaborations.

For instance, in July 2020, CenturyLink collaborated with Dell Technologies to provide their customers the advantages of a fully managed SDDC service that can be used in over 2,200 CenturyLink network-connected public and private datacenters

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Segmentation:

The Software Defined Data Center Market Report outlines a few key segments, namely services, network solution, data center type and vertical.

The services provided by SDDC include consulting and assessment services, managed services, deployment, migration and integration.

The network solution segments part of the SDS market study are software-defined networking (SDN) and software-defined compute (SDC).

Depending on the data center type, the market categories are mid-sized enterprise as well as large sized.

The verticals covered in the market study are manufacturing, healthcare, retail, government, BFSI, telecom and IT, and more. The demand for SDDC is quite high in the retail vertical mostly because it offers retailers excellent responsiveness and agility benefits that fulfill all the demands of the consumers, thus helping the retailers remain competitive.

Regional Insight

North America, Asia Pacific/APAC, Europe and RoW or the rest of the world are the key regions where the software defined data center market can observe significant growth between 2017 and 2023.

North America is the global leader in the SDDC market, owing to the fast adoption rate of the latest technologies across the United States/US and Canada coupled with the high level of investments that goes into the technology sector. The escalating number of telecommunication and cloud end users in the region also accelerates the market growth to a large extent.

The APAC market for SDDC can note excellent growth in the ensuing years, as a result of the surge in technological advancements and the burgeoning data center traffic. The expanding industries across India, Japan and China offer massive opportunities to the SDDC players, resulting in positive growth prospects. The mounting knowledge with regard to data management via a single interface at lower total cost of ownership, the rising emphasis on server virtualization, and the accelerating popularity of the infrastructure-as-a-service solutions can also benefit the APAC market.

Renowned Industry Competitors

The renowned industry competitors covered in the study are Hitachi, Ltd. (Japan), Cisco Systems, Inc. (U.S.); Microsoft Corporation (U.S.), IBM Corporation (U.S.), Citrix Systems (U.S.), Fujitsu, Ltd. (Japan), HPE Co (U.S.), VMware Inc. (U.S.), EMC Corporation (U.S.), NEC Corporation (Japan), to list a few.

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Global Software-Defined Data Center Market: by solution (SDC, SDS, SDN), by services (managed, consulting, assessment), by data center type (mid-sized, enterprise, large sized), by vertical (BFSI, Retail, IT, Healthcare, Government) - Global Forecast To 2023

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