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Software Defined Data Center Market Size (2024 - 2029)

The Software-Defined Data Center (SDDC) market is experiencing significant growth, driven by the cost benefits of reduced hardware needs and simplified resource management. SDDCs differ from traditional data centers through features like virtualization, abstraction, resource pooling, and automation, functioning as an IT-as-a-Service platform to meet various business requirements. The market's expansion is further supported by advancements in hyper-converged infrastructure and the increasing digitization efforts of enterprises, particularly in response to challenges posed by the Covid-19 pandemic. However, the market's growth may be hindered by rising security threats, necessitating robust identity and access management, OS security, and data protection measures.

Market Size of Software Defined Data Center Industry

Software Defined Data Center Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 26.60 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration High

Major Players

Software Defined Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Software Defined Data Center Market Analysis

The global Software-Defined Data Center (SDDC) Market is estimated to grow at a CAGR of 26.6% over the forecast period. Cost reduction in hardware is the major driving factor for adopting software-defined data centers. With SDDC, businesses no longer need to purchase hardware, acquire vendor-specific skills to maintain and operate it, or manage upgrades to physical machines. It simplifies the management of resources of the company, thus increasing overall efficiency.

  • With a few significant exceptions, SDDCs differ from traditional data centers in several ways, notably through virtualization, abstraction, resource pooling, and automation. A software-defined data center is an IT-as-a-Service (ITaaS) platform that meets a business's platform, infrastructure, and software requirements. An SDDC may be on-site, at an MSP, or in hosted, private, or public clouds. SDDCs house servers, storage devices, networking hardware, and security devices like conventional data centers. The operations of a traditional data center are delivered programmatically by an SDDC using a virtualized environment.
  • With the introduction of hyper-converged infrastructure-where all IT infrastructure pieces are software-defined and deployed-network, technology can now support cloud SDDC and ITaaS ambitions.
  • For IoT in the medium to long term, the Covid-19 impact is expected to be highly positive. Enterprises are expected to speed up their digitization process to overcome problems such as downtime, productivity loss, and supply chain issues, among others.
  • Ever-growing security threats that steal critical information can hamper the market's growth. SDDCs must have identity and access management to control users, OS security to safeguard the virtual server, and data security to protect information at rest and in motion. Two-factor authentication must be put in wherever possible to make the SDDC secure.

Software Defined Data Center Industry Segmentation

In an SDDC, the applications running on the network can create, provision, and deploy network resources in real-time-adding or removing routers, switches, and servers as the need arises. Industries like telecom & IT, healthcare, retail, BFSI, and manufacturing are embracing SDDC to store huge amounts of supply chain data and customer information without putting much effort into manual hardware installation.

The Software-Defined Data Center Market can be segmented by Type of Product (Solution(Software-Defined Networking, Software-Defined Storage, Software-Defined Computing), Services), End User (Telecom & IT, Healthcare, Retail, BFSI, Manufacturing), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa).

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Type of Product
Solution
Software-Defined Networking (SDN)
Software-Defined Storage (SDS)
Software-Defined Computing (SDC)
Services
By End User
Telecom & IT
Healthcare
Retail
BFSI
Manufacturing
By Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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Software Defined Data Center Market Size Summary

The Software-Defined Data Center (SDDC) market is experiencing significant growth, driven by the need for cost reduction in hardware and the increasing demand for efficient resource management. SDDCs differentiate themselves from traditional data centers through virtualization, abstraction, resource pooling, and automation, offering a streamlined IT-as-a-Service platform. This technology is crucial for businesses looking to enhance operational efficiency without the burden of managing physical hardware. The rise of hyper-converged infrastructure further supports the integration of SDDCs with cloud and ITaaS ambitions, facilitating the management of vast data generated by IoT devices. However, the market faces challenges from security threats, necessitating robust identity and access management, OS security, and data protection measures to safeguard information.

The Asia-Pacific region is the fastest-growing market for SDDCs, fueled by economic growth, increased internet and smartphone penetration, and a surge in data generation. The region's financial centers are advancing, prompting a need for enhanced data storage capabilities. SDDCs serve as a foundational technology for hybrid cloud systems, offering cost efficiency, scalability, and agility. The hybrid cloud market in Asia-Pacific is poised for growth, supported by government initiatives in countries like China, which emphasize cloud technology development. Major players like Oracle, VMware, and Microsoft dominate the market, with strategic acquisitions and product innovations driving further expansion. Recent developments, such as Nutanix's simplified product range and Broadcom's acquisition of VMware, highlight the dynamic nature of the market, as companies continue to adapt to evolving client needs and technological advancements.

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Software Defined Data Center Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Threat of New Entrants

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Bargaining Power of Suppliers

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Assessment of Impact of COVID-19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Product

      1. 2.1.1 Solution

        1. 2.1.1.1 Software-Defined Networking (SDN)

        2. 2.1.1.2 Software-Defined Storage (SDS)

        3. 2.1.1.3 Software-Defined Computing (SDC)

      2. 2.1.2 Services

    2. 2.2 By End User

      1. 2.2.1 Telecom & IT

      2. 2.2.2 Healthcare

      3. 2.2.3 Retail

      4. 2.2.4 BFSI

      5. 2.2.5 Manufacturing

    3. 2.3 By Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 Latin America

      5. 2.3.5 Middle East & Africa

Software Defined Data Center Market Size FAQs

The Software Defined Data Center Market is projected to register a CAGR of 26.60% during the forecast period (2024-2029)

Microsoft Corporation, Hewlett Packard Enterprise Company, Oracle Corporation, Cisco Systems and VMware Inc. are the major companies operating in the Software Defined Data Center Market.

Software Defined Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)