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Software-Defined Data Center Growth to be Huge

September 30, 2016

As more companies reconsider just how important the data center is to overall operations, there's a noteworthy change appearing in that market as well. New word from Allied Market Research suggesting that, by 2022, the worldwide market for software-defined data center (SDDC) operations will reach $139 billion. Impressive as that figure is in isolation, the details making up that figure will be even more impressive.

The Allied Market Research report, titled “World Software-Defined Data Centers (SDDC) Market: Opportunities and Forecasts, 2014 - 2022,” that $139 billion will represent a compound annual growth rate (CAGR) of 32 percent until 2022. Several components go into the building of such a market, as the field encompasses most every part of a data center and its resources, ranging from storage to networking, and all of it delivered on an “as a service basis.

Leading the charge in the SDDC market is the ongoing growth in demand for big data analytics services, which break down information derived from a business' standard operations in a bid to produce actionable insights that businesses can take advantage of. Sifting through all that data requires substantial processing power, and it's the SDDC that many firms turn to to actually generate that power.

                     Image via Pixabay

While most every part of the SDDC market will experience growth, the software-defined networking (SDN) network solution market is expected to see the lion's share of the market in that time, as it comprises the largest portion of the necessary material to set up such operations, and will account for a CAGR of 31.6 percent by itself. The usual suspects in demand, Europe and North America, are set to lead the way in adoption, with governments and the banking, financial services and insurance (BFSI) cluster leading the way in demand within these markets.

It's been clear for some time now that businesses are increasingly reliant on the data center to carry out many common processes, and with good reason. So many processes are becoming data-driven, and having the material on hand to work with these data-heavy processes is all the more important. That makes data centers the technological equivalent of pickaxes in a gold rush—a metaphor made all the more important when considering that such a practice is called “data mining” on some fronts—and thus, seeing growth on the scale Allied Market Research projections is perfectly rational. With the increased importance of the “as a service” model, taking the capital expenses of on-premises systems out of the equation, seeing the growth of the SDDC is particularly reasonable.

While the market may not reach the levels projected, some growth is a safe bet. There are too many companies demanding systems like these and too much use therein to not see at least some growth out of this.

Edited by Maurice Nagle

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