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

May 25, 2017

According to most industry perceptions, application performance management (APM) and application portfolio management (APM) might seem to be worlds apart — or at best connected by a very thin thread. In this blog, I'd like to highlight three areas that are bridging the APM-to-APM divide: digital experience management, application discovery and dependency mapping (ADDM), and agile/DevOps lifecycle planning ...

May 24, 2017

In today's digital world, it is possible to gauge the cost implications of an IT outage on employee productivity, revenue generation but it is usually much more tricky to measure the negative impacts on the very IT people's lives ...

May 22, 2017

APMdigest asked experts across the industry for their opinions on the next steps for ITOA. Part 5 offers some interesting final thoughts ...

May 19, 2017

APMdigest asked experts across the industry for their opinions on the next steps for ITOA. Part 4 covers automation and the dynamic IT environment ...

May 18, 2017

APMdigest asked experts across the industry for their opinions on the next steps for ITOA. Part 3 covers monitoring and user experience ...

May 17, 2017

APMdigest asked experts across the industry for their opinions on the next steps for ITOA. Part 2 covers visibility and data ...

May 16, 2017

Managing application performance today requires analytics. IT Operations Analytics (ITOA) is often used to augment or built into Application Performance Management solutions to process the massive amounts of metrics coming out of today's IT environment. But today ITOA stands at a crossroads as revolutionary technologies and capabilities are emerging to push it into new realms. So where is ITOA going next? With this question in mind, APMdigest asked experts across the industry — including analysts, consultants and vendors — for their opinions on the next steps for ITOA ...

May 15, 2017

Digital transformation initiatives are more successful when they have buy-in from across the business, according to a new report titled Digital Transformation Trailblazing: A Data-Driven Approach ...

May 11, 2017

The growing market for analytics in IT is one of the more exciting areas to watch in the technology industry. Exciting because of the variety and types of vendor innovation in this area. And exciting as well because our research indicates the adoption of advanced IT analytics supports data sharing and joint decision making in a way that's catalytic for both IT and digital transformation ...

May 10, 2017

Colin Fletcher, Research Director at Gartner, talks about Algorithmic IT Operations (AIOps) and the challenges and recommendations for AIOps adoption ...