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Software-Defined Data Market Could Reach $83.21 Billion by 2021

June 15, 2016

The software-defined data center market is showing a boom, a recent industry report says, because of the massive flow of data moving between businesses and toward customers.

The report from MarketsandMarkets showed in its report – “Software-Defined Data Center (SDDC) Market by Solution (SDN, SDS, SDC, and Application), Services (Consulting, Integration and Deployment, and Managed Services), Data Center Type, Verticals, and Regions - Global Forecast to 2021” – that the SDDC market could reach $83.21 billion by 2021, up from its mark of $25.61 billion in 2016, which would have the market experience a compound annual growth rate (CAGR) of 26.57 percent in the period.

Of course, data centers have many parts, so the growth of their various segments can show a lot about how the whole will perform. The software-defined networking (SDN) segment of the overall SDDC market may be the biggest performer here with the highest CAGR, and its counterpart, the managed services market, could grow at the highest rate from now until the next decade begins its momentum.

Furthermore, it is notable that North America is expected to stand out among the world’s other regions. The report notes that it should “dominate the SDDC market during the forecast period.”

Software-based networking holds the potential to benefit businesses in a multitude of ways. It offers improved resource management, dynamic network provisioning, optimization of workloads on the premise and in the cloud, and other features that can help businesses out of the trap of proprietary networking hardware use. Most businesses will look to SDN to become more efficient and streamline their ability to deploy software to their own employees and to their customers. Specialty developers may also see SDN as the golden path forward when it comes to software creation and testing. Deployment of new products should be much easier in a futuristic network environment.

Enterprises that act as managed service providers (MSPs) will be the link between many of the above operations that take advantage of software-based data centers. MSPs own their own data centers and can offer services such as data storage, infrastructure, and application building tools to enterprises that need them but would be hard pressed to operate their own SDDCs that make such usage possible. The key to the MSP-to-business relationship lies in the proper transfer of services, which businesses will look to be smooth and speedy, and the maintenance of hosted servers. As long as MSPs hold up their end of the deal and update their servers with timely software patches and bug fixes, the coming years could be bright.

As stated earlier, many of these operations may take place in North America. Although many other countries such as China, India, and Japan will also likely show a thirst for technological adoption, the West should hold its fair share of the growing market. In any case, the development of the SDDC market will remain a global endeavor with many moving parts in a host of countries.

Edited by Maurice Nagle

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