SDN Market Expected to Experience Strong Growth
February 09, 2016

Pete Goldin
APMdigest

Share this

SDN is not expected to truly catch on in 2016, according to some experts on APMdigest's 2016 predictions list, however a recent International Data Corporation (IDC) forecast says: the worldwide software-defined networking (SDN) market — comprising physical network infrastructure, virtualization/control software, SDN applications (including network and security services), and professional services — will have a compound annual growth rate (CAGR) of 53.9% from 2014 to 2020 and will be worth nearly $12.5 billion in 2020.

IDC says software-defined networking continues to gain market traction as an innovative architectural model capable of enabling automated provisioning, network virtualization, and network programmability for datacenters at cloud-providers and enterprise networks. Although SDN initially found favor in hyperscale datacenters and at large-scale cloud service providers, it is winning adoption in a growing number of enterprise datacenters across a broad range of vertical markets.

While the physical network, encompassing datacenter switches, will still account for the largest single segment of the SDN market in 2020, per the IDC research, the fastest growth will be found in the two software categories – the virtualization/control layer and SDN applications – which together will be worth approximately $5.9 billion. IDC expects the virtualization/control layer software market to reach $2.4 billion in 2020, with a CAGR of nearly 64% during the forecast period. SDN applications – including Layer 4-7 network and security services and analytics – are forecast to achieve a CAGR of 66% through 2020, when they will account for revenue of more than $3.5 billion.

"Cloud computing and the 3rd Platform have driven the need for SDN, which will represent a market worth more than $12.5 billion in 2020. Not surprisingly, the value of SDN will accrue increasingly to network-virtualization software and to SDN applications, including virtualized network and security services. Large enterprises are now realizing the value of SDN in the datacenter, but ultimately, they will also recognize its applicability across the WAN to branch offices and to the campus network," said Rohit Mehra, VP, Network Infrastructure at IDC.

“While networking hardware will continue to hold a prominent place in network infrastructure, SDN is indicative of a long-term value migration from hardware to software in the networking industry. For vendors, this will portend a shift to software- and service-based business models, and for enterprise customers, it will mean a move toward a more collaborative approach to IT and a more business-oriented understanding of how the network enables application delivery," said Brad Casemore, Director of Research for Datacenter Networking at IDC.

Share this

The Latest

September 21, 2017

The increased complexity of new computing architectures coupled with new application development methodologies – especially in the face of time-to-market and security threat pressures – should make secure UX the first strategic decision for CEOs and CFOs on the path to digital transformation ...

September 19, 2017

IT professionals tend to go above and beyond the scope of their core responsibilities as the changing business landscape demands more of their attention, both inside and outside of the office, according to the Little-Known Facts survey conducted by SolarWinds in honor of IT Professionals Day ...

September 18, 2017

Digital video consumption is viral and, according to a new study released by IBM and International Broadcasting Convention (IBC), more than half of the 21,000 consumers surveyed are using mobiles every day to watch streaming videos, and that number is expected to grow 45 percent in the next three years ...

September 15, 2017

No technology that touches more than one IT stakeholder, no matter how good and how transformative, can deliver its potential without attention to leadership, process considerations and dialog. In this blog, I'd like to share effective strategies for AIA adoption ...

September 14, 2017

Enterprise IT environments are becoming more heterogeneous and complex, with fragmentation permeating cloud infrastructure, tooling and culture, according to a survey recently conducted by IOD Cloud Technologies Research in partnership with Cloudify ...

September 12, 2017

One area that enables enterprises to reduce complexity and streamline operations is their virtual desktop infrastructure (VDI). Virtualization is a linchpin of digital transformation and effectively optimizing an enterprise's VDI is essential to moving forward with digital technologies. Delivering the best possible VDI performance means taking a fresh look at what "desktop" means today. The endpoint, or desktop, now can be a physical thin client, a software-defined thin client, a traditional laptop, a phone or tablet. To reduce operational waste and achieve better performance across the desktop environment, consider these five actions ...

September 11, 2017

In incident management, we often overlook the simple things in favor of trying to do too much, too soon. Why not make sure we've done the fundamentals properly? ...

September 08, 2017
For our Advanced IT Analytics (AIA) Buyer's Guide, we interviewed more than 20 deployments to help us better assess vendor strengths and limitations. So given the abundance of riches to work with, I've decided to illustrate several of the more prominent AIA benefit categories with actual real-world comments ...
September 07, 2017

The Input/Output Operations per Second (I/O) capabilities of modern computer systems are truly a modern wonder. Yet no matter how powerful the processors, no matter how many cores, how perfectly formed the bus architecture, or how many flash modules are added, somehow it never seems to be enough ...

September 06, 2017

By taking advantage of performance monitoring, IT and business decision makers can gain better visibility into their cloud and application performance. Dedicated performance monitoring has become essential for providing visibility into all areas of application performance and keeping the business running optimally ...