Software-Defined Data Center Market Analysis By Application (Data storage and backup, Network virtualization, Server virtualization, Automation and orchestration, Others), By Component (Servers, Storage, Network, Security, Management software), and By Region Forecast to 2032

Report Overview

The Software-Defined Data Center (SDDC) Market size is estimated to grow at a CAGR of 6.78% between 2022 and 2032. The market size is forecast to increase by USD 32,567.89 million. The growth of the market depends on several factors, including the increasing adoption of cloud computing, the need for efficient data management and storage solutions, and the demand for scalable and flexible infrastructure. A software-defined data center refers to a data center infrastructure that is virtualized and controlled by software, enabling automation, flexibility, and agility in managing and provisioning resources.

Software-Defined Data Center Market Overview

Drivers

One of the key factors driving the software-defined data center market growth is the increasing adoption of cloud computing. Cloud computing has gained significant popularity in recent years due to its ability to provide on-demand access to computing resources, scalability, and cost-effectiveness. As organizations increasingly migrate their workloads to the cloud, the demand for software-defined data centers that can support cloud-based applications and services is also growing. SDDCs offer the necessary infrastructure and management capabilities to enable efficient cloud deployments, making them a preferred choice for organizations.

Moreover, the need for efficient data management and storage solutions is driving the adoption of software-defined data centers. With the exponential growth of data, organizations are facing challenges in managing and storing their data effectively. SDDCs provide centralized management and virtualization of storage resources, enabling organizations to optimize their data management processes and improve storage efficiency. This factor is expected to drive market growth during the forecast period.

Trends

A key trend shaping the software-defined data center market growth is the integration of artificial intelligence (AI) and machine learning (ML) technologies. The integration of AI and ML in SDDCs enables intelligent automation, predictive analytics, and self-healing capabilities. These technologies can analyze data, identify patterns, and make intelligent decisions to optimize resource allocation, improve performance, and enhance security. The integration of AI and ML in SDDCs opens up new opportunities for organizations to achieve greater operational efficiency and agility.

Additionally, the increasing demand for scalable and flexible infrastructure is driving the adoption of software-defined data centers. Organizations require infrastructure that can quickly adapt to changing business needs and scale up or down as required. SDDCs provide the flexibility to provision and manage resources dynamically, allowing organizations to scale their infrastructure based on demand. This flexibility enables organizations to optimize resource utilization, reduce costs, and improve agility in responding to business requirements. Hence, such factors are expected to drive market growth during the forecast period.

One of the key challenges hindering the software-defined data center market growth is the complexity of implementation and integration. Implementing a software-defined data center involves significant changes in infrastructure, processes, and skill sets. Organizations need to invest in new technologies, train their staff, and ensure seamless integration with existing systems. The complexity of implementation and integration can pose challenges and increase the time and cost involved in deploying SDDCs. Additionally, organizations may face resistance to change and cultural barriers that can hinder the adoption of SDDCs.

Furthermore, security concerns are another restraint for the software-defined data center market. As SDDCs rely heavily on virtualization and software-defined networking, they introduce new security risks and challenges. Organizations need to ensure robust security measures to protect their data and infrastructure from cyber threats. The complexity of securing virtualized environments and the need for advanced security solutions can pose challenges for organizations adopting SDDCs. Hence, such factors are expected to hinder market growth during the forecast period.

Software-Defined Data Center Market Segmentation By Application

The cloud services segment is estimated to witness significant growth during the forecast period. Cloud services rely on scalable and flexible infrastructure to deliver on-demand computing resources to users. Software-defined data centers provide the necessary infrastructure and management capabilities to support cloud services effectively. SDDCs enable organizations to provision and manage resources dynamically, ensuring optimal performance and scalability for cloud-based applications and services. The increasing adoption of cloud services across various industries is driving the demand for software-defined data centers in the cloud services segment.

The enterprise segment is another significant application of software-defined data centers. Enterprises require efficient and agile infrastructure to support their business operations and applications. SDDCs provide centralized management, automation, and virtualization capabilities that enable enterprises to optimize their IT infrastructure, improve resource utilization, and enhance operational efficiency. The enterprise segment includes various industries such as banking, healthcare, retail, and manufacturing, among others. Hence, the demand for software-defined data centers in the enterprise segment is expected to fuel market growth during the forecast period.

Software-Defined Data Center Market Segmentation By Component

The software segment is estimated to witness significant growth during the forecast period. Software-defined data centers rely on software solutions to virtualize and automate infrastructure resources. Software solutions enable organizations to abstract and pool resources, automate provisioning and management tasks, and provide centralized control and visibility over the infrastructure. The increasing demand for software-defined data centers is driving the growth of the software segment as organizations invest in software solutions to implement and manage SDDCs effectively.

The hardware segment is another significant component of software-defined data centers. Hardware components such as servers, storage devices, and networking equipment form the underlying infrastructure of SDDCs. Organizations need to invest in hardware that is compatible with software-defined architectures and can support the scalability and flexibility requirements of SDDCs. The hardware segment includes various types of servers, storage devices, and networking equipment specifically designed for software-defined data centers. Hence, the demand for hardware components in software-defined data centers is expected to contribute to market growth during the forecast period.

Regional Overview:

North America is estimated to contribute 38% to the growth of the global software-defined data center market during the forecast period. The region has a mature IT infrastructure and a high adoption rate of advanced technologies, making it a prominent market for software-defined data centers. The presence of major technology companies and cloud service providers in North America drives the demand for software-defined data centers. Additionally, the increasing adoption of cloud computing, big data analytics, and IoT technologies in various industries further fuels the growth of the software-defined data center market in the region.

Europe is another significant region in the software-defined data center market. The region has a strong presence of data center operators, cloud service providers, and IT infrastructure vendors. The increasing demand for scalable and flexible infrastructure, along with the need for efficient data management and storage solutions, drives the adoption of software-defined data centers in Europe. Additionally, government initiatives promoting digital transformation and the adoption of advanced technologies contribute to the growth of the software-defined data center market in the region.

In 2020, during the COVID-19 pandemic, the growth of the global software-defined data center market witnessed a temporary slowdown due to the disruption in supply chains and the closure of data centers. However, as organizations accelerated their digital transformation initiatives and adopted remote work models, the demand for software-defined data centers increased. The need for scalable and flexible infrastructure to support remote work, cloud-based applications, and digital services drove the market during the pandemic. Such factors are expected to continue driving the market during the forecast period.

Software-Defined Data Center Market Customer Landscape

The software-defined data center market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Major Software-Defined Data Center Market Companies:

Companies are employing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Cisco Systems Inc: The company offers software-defined data center solutions such as Cisco ACI (Application Centric Infrastructure), Cisco UCS (Unified Computing System), and Cisco HyperFlex.

Dell Technologies Inc: The company offers software-defined data center solutions such as Dell EMC VxRail, Dell EMC PowerFlex, and Dell EMC PowerStore.

Hewlett Packard Enterprise Development LP: The company offers software-defined data center solutions such as HPE Synergy, HPE SimpliVity, and HPE Nimble Storage.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Amazon Web Services Inc.
• Brocade Communications Systems Inc.
• Citrix Systems Inc.
• Fujitsu Ltd.
• Google LLC
• Hitachi Vantara Corp.
• IBM Corp.
• Lenovo Group Ltd.
• Microsoft Corp.
• NEC Corp.
• NetApp Inc.
• Nutanix Inc.
• Oracle Corp.
• Pure Storage Inc.
• SAP SE
• Super Micro Computer Inc.
• VMware Inc.
• Western Digital Corp.
• Xilinx Inc.
• ZTE Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The software-defined data center market report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2019 to 2032.

• Application Outlook (USD Million, 2019 - 2032)

o             Data storage and backup

o             Network virtualization

o             Server virtualization

o             Automation and orchestration

o             Others

• Component Outlook (USD Million, 2019 - 2032)

o             Servers

o             Storage

o             Network

o             Security

o             Management software

• Geography Outlook (USD Million, 2019 - 2032)

o             North America

             The U.S.

             Canada

o             Europe

             U.K.

             Germany

             France

             Rest of Europe

o             APAC

             China

             India

o             South America

             Chile

             Argentina

             Brazil

o             Middle East & Africa

             Saudi Arabia

             South Africa

             Rest of the Middle East & Africa