Software-Defined Data Center (SDDC) Market analysis report by Future Market Insights shows that global sales of the Software-Defined Data Center Market in 2021 were held at USD 39.4 Billion. The projected market growth during 2022 is expected to be 17.3%. Hardware is expected to be the highest revenue-generating segment, projected to grow at a CAGR of around 19.5% from 2022 to 2032.
| Attributes | Details |
|---|---|
| Global Software-Defined Data Center Market Size (2022) | USD 46.2 Billion |
| Global Software-Defined Data Center Market Size (2032) | USD 228.6 Billion |
| Global Software-Defined Data Center Market CAGR (2022 to 2032) | 17.3% |
| USA Software-Defined Data Center Market Size (2032) | USD 75.6 Billion |
| Key Companies Covered | IBM; Oracle; Microsoft; Dell Technologies; Cisco; Huawei; Fujitsu; VMware; Scality; NTT Limited |
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As per the Software-Defined Data Center Market research by Future Market Insights - a market research and competitive intelligence provider, historically, from 2015 to 2021, the market value of the Software-Defined Data Center Market increased at around 22.8% CAGR.
Software Defined Data Center (SDDC) use has increased across industries such as telecom & IT, BFSI, retail, and healthcare due to the significant growth in big data and its cost-effectiveness. As a result of simplified and computerized software data Center operations, the market size of SDDC is expected to rise rapidly in near future.
The current market competitiveness and the global economic crisis have pushed the use of cost-effective strategies to restructure company models. Organizations are transitioning away from the process of purchasing and controlling hardware and adopting the dependable operations and maintenance Expenditure (OPEX) model. IT infrastructure spending accounts for a significant proportion of the companies’ overall cost.
DataCenter operators are attempting to reduce their OPEX and SDDC technologies which can help them reduce Capital Expenditure (CAPEX) and contribute to overall IT performance. SDDC systems can considerably reduce total energy consumption by automatically shutting off the hardware or lowering power levels when there is no or little demand. According to a VMware analysis of SDDC IT results, SDDC OPEX was 50% lesser than general data Centers, and SDDC IT productivity rose by 67%.
A significant reduction in OPEX is projected to make an impact on the company's overall financial performance. The integrated management of data Centers enables a unified interface control, which aids in enhancing efficiency and minimizing data Center costs and administration time. As per the Enterprise Strategy Group's 2018 poll, 49% of respondents believed that they were considerably ahead of their competitors in terms of the economic benefits of deploying Software-Defined Networking (SDN) which has increased the demand for SDDC globally.
The rapidly changing IT landscape is a key driving force for the demand for software-defined data centers. Organizations are using software-defined data Centers to boost IT agility and reduce IT infrastructure complexity. It will aid in the standardization of management solutions across infrastructure layers, allowing policy-driven provisions and pooled infrastructure resources to respond to new IT resource needs more quickly. It also enables end-user IT managers to cut operating expenses, chart a course for end-use modernization, and maintain control over provisioning. It enables apps to supply IT resources independently, and when appropriate software is deployed, the effort of an administration may be reduced significantly or totally in some circumstances. Such variables are the key drivers of the Software-Defined Data Center Market.
End-user businesses' desire to cut capital expenditure by reducing the data center footprint is fuelling industry growth. The technology simplifies and automates data Center operations, assisting end-user organizations in driving operational efficiency. The rapid use of modern technologies such as cloud, IoT, and AI is expected to increase demand for SDDC solutions. Its cloud management provides end-user organizations with an end-to-end overview of infrastructure services as well as significant capital investment savings via capacity planning and machine learning.
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During the projected period, North America is projected to hold the largest size in the global Software-Defined Data Center Market with a market size of over USD 100 Billion.
Due to a large number of new SDDC installations and upgrades to existing data Center infrastructure systems in the region, North America leads the software-defined data center industry. The presence of firms including VMware, Inc., IBM Corporation, Cisco Systems, Inc., and others have further contributed to the demand growth.
The United States is expected to account for the highest market size of USD 75.6 Billion by the end of 2032 with an expected CAGR of 16.7% by the end of 2032. The US is home to some of the most powerful IT corporations across the globe that have established data Centers in the United States. Northern Virginia, Northern New Jersey, Santa Clara, Dallas, and Chicago are among the key data center metro regions in the country. Companies in the United States are working on adapting to newer technologies.
Companies are focusing on software-defined data Centers over old hardware data Centers to reduce costs and enhance scalability, availability, and efficiency. As a result, the presence of a large number of IT and telecom behemoths, as well as the growing emphasis of companies on improving efficiency and lowering operational costs, have been the key factors that are expected to boost the development of the software-defined data center market in the United States.
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The hardware segment is forecasted to grow at the highest CAGR of around 19.5% from 2022 to 2032. SDDC eliminates the need for businesses to purchase hardware, and acquire vendor-specific skills to manage and execute it or manage physical machine changes. It increases resource management in the firm, resulting in greater overall efficiency.
In addition, the popularity of software-defined data Centers is increasing to ensure more control and administration of both hardware and software. According to a Computer World white paper, up to 13% of servers acquired over the coming years would be used to handle machine learning, predictive analytics, and artificial intelligence in software-defined data Centers. Firms, on the other hand, may underestimate the challenges of employing obsolete platforms and maintaining new IT infrastructure.
The Software-Defined Computing (SDC) segment is forecasted to grow at the highest CAGR of around 18.7% from 2022 to 2032. Due to the popularity of the cloud-native application, SDC accounts for a large market share. A cloud-native application uses cloud computing concepts to decrease deployment risks while improving performance, service flexibility, and quality. Cloud-native apps are compatible with both on-premises as well as cloud application platforms.
One of the primary benefits of software-defined computing is that it allows infrastructure to become more adaptable, allowing them to serve several clients or consumers simultaneously. The infrastructure may be divided into components that can be provided on demand using virtualization technologies. This has been a defining feature of the cloud services revolution.
Virtualization and software-defined computing have also resulted in the software-defined data Center, in which all a data Center’s technological components are virtualized and represented as software functions. Network administrators may expedite many management operations by streamlining the data center and making it more readily scalable by utilizing software-defined computing and virtualization.
The Software-Defined Data Center Market is highly concentrated, with fewer competitors accounting for the vast majority of the market share. The established firms are attempting to obtain supremacy in this sector. These firms are increasing their profits and market shares through smart joint projects.
Some of the recent developments in the Software-Defined Data Center market include:
Similarly, recent developments related to companies in Software-Defined Data Centers Market have been tracked by the team at Future Market Insights, which is available in the full report.
The global Software-Defined Data Center Market is worth more than USD 39.4 Billion at present.
The value of the Software-Defined Data Center Market is projected to increase at a CAGR of around 17.3% from 2022 to 2032.
The value of the Software-Defined Data Center Market increased at a CAGR of around 22.8% from 2015 to 2021.
Storage virtualization has been enabling numerous storage units to be integrated into one and it has been eliminating the need for any physical storage.
The market of Software-Defined Data Center Market in the US is projected to expand at a CAGR of around 16.7% from 2022 to 2032.
1. Executive Summary | Software-Defined Data Center Market 2. Market Overview 3. Market Risks and Trends Assessment 4. Market Background 5. Key Success Factors 6. Global Market Demand Analysis 2015 to 2021 and Forecast, 2022 to 2032 7. Global Market Value Analysis 2015 to 2021 and Forecast, 2022 to 2032 8. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Type 8.1. Software-Defined Computing (SDC) 8.2. Software-Defined Storage (SDS) 8.3. Networking (SDDCN) 8.4. Automation and Orchestration 9. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Component 9.1. Hardware 9.2. Software 9.3. Services 9.3.1. Training and Consulting 9.3.2. Integration and Deployment 9.3.3. Support and Maintenance 9.3.4. Managed Services 10. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Organization Size 10.1. Large Enterprises 10.2. Small and Medium-sized Enterprises (SMEs) 11. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Vertical 11.1. BFSI 11.2. IT and Telecom 11.3. Government and Defense 11.4. Healthcare 11.5. Education 11.6. Retail 11.7. Manufacturing 11.8. Others (Media and Entertainment, and Energy and Utilities) 12. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, By Region 12.1. North America 12.2. Latin America 12.3. Europe 12.4. Asia Pacific 12.5. Middle East and Africa (MEA) 13. North America Market Analysis 2015 to 2021 and Forecast 2022 to 2032 14. Latin America Market Analysis 2015 to 2021 and Forecast 2022 to 2032 15. Europe Market Analysis 2015 to 2021 and Forecast 2022 to 2032 16. Asia Pacific Market Analysis 2015 to 2021 and Forecast 2022 to 2032 17. Middle East and Africa Market Analysis 2015 to 2021 and Forecast 2022 to 2032 18. Key Countries Market Analysis 2015 to 2021 and Forecast 2022 to 2032 19. Market Structure Analysis 20. Competition Analysis 20.1. IBM 20.2. Microsoft 20.3. Dell Technologies 20.4. Cisco 20.5. Oracle 20.6. HUAWEI 20.7. FUJITSU 20.8. VMWare 20.9. Scality 20.10. NTT Limited 21. Assumptions and Acronyms Used 22. Research Methodology
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Software-Defined Data Center Market
