What Has Been the Growth of the Software Defined Data Center Market So Far?
The software defined data center market has seen considerable growth due to a variety of factors.
• The market size for software defined data centers has seen a rapid expansion in recent times. It's projected to increase from $75.85 billion in 2024 to $91.35 billion in 2025, indicating a compound annual growth rate (CAGR) of 20.4%.
The exceptional growth during the historical period could be a result of industry standards and vendor performance, flexibility and scalability, the requirement for more efficient operations, a focus on software-centric methods, and the need for affordable and better resource utilization.
What Are the Future Growth Projections for the Software Defined Data Center Market?
The software defined data center market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size for software defined data centers is projected to experience significant expansion. Forecasts predict a growth to $226.29 billion by 2029, marked by a compound annual growth rate (CAGR) of 25.5%.
The predictive expansion during the forecast period is primarily due to vendor innovations and offerings, amplified activity in edge computing and IoT, a rising preference for automation and orchestration, the acceptance of cloud and hybrid IT environments, and a sustained focus on digital transformation. Key trends anticipated in the forecast period encompass the adoption of open source and standardization, sustainability and green IT efforts, modernization and efficiency in data centers, the development of composable infrastructure, the implementation of zero trust security models, and advancements in Software-Defined Networking (SDN).
What Factors Are Driving Growth In The Software Defined Data Center Market?
The increase in digitalization adoption is anticipated to be a crucial factor propelling the software defined data center market's expansion. This surge in digitalization acceptance is due to the necessity for improved productivity, reduced operational expenses, quicker decision-making capability, heightened efficiency, technological evolutions, stakeholder encouragement for digitalization, among other reasons. The escalating usage of digitalization will generate a massive volume of data needing storage, thus necessitating software defined data centers. This requirement for data centers will result in an enormous demand for data center services to establish, control, and operate data centers. For example, as per Amazon UK, a UK-based e-commerce corporation, UK businesses' AI utilization increased by 31% between 2022 and 2023. Furthermore, adopting digital technology and AI could potentially enhance the UK's economy by £520 billion by 2030, assisting the nation in attaining its ambition of becoming a technological powerhouse by 2028. As such, the rising adoption of digitalization will stimulate the growth of the software defined data center market.
What Are The Main Segments Of The Global Software Defined Data Center Market?
The software defined data center market covered in this report is segmented –
1) By Type: Software Defined Computing (SDC), Software-Defined Storage (SDS), Software-Defined Data Center Networking (SDDCN), Automation And Orchestration
2) By Component: Hardware, Software, Services
3) By Organization Size: Small And Medium-Sized Enterprises (SMEs), Large enterprises
4) By Vertical: Banking, Financial Services And Insurance (BFSI), Information Technology (IT) And Telecom, Government And Defense, Healthcare, Education, Retail, Manufacturing, Others Verticals
Subsegments:
1) By Software Defined Computing (SDC): Virtualization Solutions, Resource Management Tools, Load Balancing Software, Application Delivery Controllers
2) By Software-Defined Storage (SDS): Storage Virtualization Solutions, Object Storage Software, Data Protection And Backup Solutions, Storage Management Platforms
3) By Software-Defined Data Center Networking (SDDCN): Network Virtualization Software, Software-Defined WAN (SD-WAN) Solutions, Network Management And Monitoring Tools, Load Balancers And Routers
4) By Automation And Orchestration: Workflow Automation Tools, Cloud Orchestration Platforms, Configuration Management Software, Infrastructure As Code (IaC) Solutions
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What Emerging Trends Are Influencing The Growth Of The Software Defined Data Center Market?
The increasing acceptance of hyper-scale cloud is a key trend in the software defined data center market. Hyper-scale refers to immense scalability in computing, predominantly for big data or cloud computing. Hyper-scale infrastructure is structured for horizontal scalability, resulting in elevated performance levels, throughput, and redundancy for fault tolerance and high availability. Hyper-scale computing frequently depends on highly scalable server architectures and virtual networking. Hyper-scale cloud solutions provide the most economical strategy for handling demanding needs. For example, in December 2023, U.S. cloud computing firm Rackspace Technology, Inc., unveiled its SDDC (Software Defined Data Center) Enterprise and Business solutions for SAP, supported by VMware's virtualized infrastructure. These solutions cater to mission-critical SAP and SAP HANA environments with a combined hardware and software stack on Dell VxRail, offering customers a complete solution. The SDDC packages incorporate various additional services, like the VMware vRealize Suite, operations management, disaster recovery (DR), and the VMware Hybrid Cloud Extension (HCX). They also encompass storage choices that comply with SAP's rigorous standards for the newest SAP HANA database, including S/4 HANA.
Who Are the Key Players in the Software Defined Data Center Market?
Major companies operating in the software defined data center market include:
• VMware Inc.
• Microsoft Corporation
• Hewlett Packard Enterprise Company
• Dell Technologies Inc.
• Oracle Corporation
• Cisco Systems Inc.
• Citrix Systems Inc.
• International Business Machines Corporation
• SAP SE
• Hitachi Ltd.
• Fujitsu Ltd.
• NEC Corporation
• Juniper Networks Inc.
• Western Digital Corporation
• Nutanix
• Red Hat Inc.
• Huawei Technologies Co. Ltd.
• Lenovo Group Limited
• NetApp Inc.
• Pure Storage Inc.
• Tintri Inc.
• DataCore Software
• Scale Computing
• Pivot
• StratoScale
• Coho Data Inc.
• Maxta Inc.
• Hedvig Inc.
• Diamanti Inc.
• Robin Systems Inc.
What Is The Most Dominant Region In The Software Defined Data Center Market?
North America was the largest region in the software defined data center market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the software defined data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
