Software-defined data center market to hit $235B by 2026—report

Software-defined data center market to hit $235B by 2026—report

The ongoing shift to virtualized data centers will drive the software-defined data center market to $235 billion by 2026, according to a report. The software-defined data center (SDDC) market value currently sits at $40 billion, according to research by Global Market Insights.There are numerous benefits to moving to SDDC including enabling IT organizations to reduce their capital expenditures, along with higher availability and better recovery of workloads. The report by Global Market Insights also cited the proliferation of smart phones and increased internet penetration in Asia Pacific some of the reasons for SDDC growth.

Along with server virtualization, other trends driving SDDC to $235 billion include cloud computing, IoT and mobile solutions. SDDC is mainly being driven by business and consumer services and applications from hyperscale cloud providers. Consumer trends for SDDC adoption include streaming video, online shopping and social networking.


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Software-defined networking (SDN) market growth is due to the rapid adoption of IT convergence and cloud services. That growth is driven by its capabilities to provide an array of resources across an enterprise’s network that can be used to automate, orchestrate, and scale and support operations. The growing demand for cloud computing is expected to change the dynamics of data center infrastructure by offering enhanced scalability, improved flexibility, and programmability through virtualization.

RELATED: Telefónica updates SD-WAN infrastructure to include software-defined data centers

Some service providers, such as Telefónica, are extending their SD-WAN infrastructure into SDCC for integration of WAN-data center environments with one web portal and one orchestrator.

Global Market Insights said the major market players in the SDDC space include: Advanced Systems Group, Cisco, Fujitsu, Hitachi Data Systems (Hitachi Vantra), HP Enterprises, Huawei, IBM, Juniper Networks, Microsoft , NEC Corporation of America, NetApp, Nutanix, Oracle , SUSE, and VMware.

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