Software-Defined Data Center Market Scope and Overview
The software-based data center market is projected to reach USD 303.2 billion by 2032, driven by the increasing demand for flexibility and scalability. Valued at USD 57.9 billion in 2023, this market is expected to grow at a compound annual growth rate (CAGR) of 20.2% from 2024 to 2032.
Several key factors are driving the growth of the software-defined data center market:
- Rise of Cloud Computing: The growing demand for cloud computing solutions like Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) necessitates software-defined data centers to manage these services efficiently and seamlessly.
- Big Data Growth: Enterprises generate enormous amounts of data that continue to increase. Software-defined data center solutions provide the necessary elasticity and scalability to store, manage, and analyze data efficiently.
- Security and Compliance: In the digital age, security concerns are paramount. Software-defined data centers enable businesses to implement robust security measures throughout a virtualized infrastructure, ensuring data privacy and regulatory compliance.
- Technological Advancements: Continuous advancements in virtualization technologies, artificial intelligence, and containerization are further driving the adoption of software-defined data centers.
Some of the Key Players Studied in this Report are:
The prominent players in the market are Fujitsu, IBM, Microsoft, Commvault, Dell Technologies, Oracle, Nutanix, Cisco, Citrix, Huawei, VMware, Juniper Networks, Arista Networks, DataCore Software, Scality, HPE, SUSE, DriveNets, Lightbits, NetApp, Nuage Networks, Lenovo, Stratoscale, HiveIO, TidalScale, Portworx, Arrcus, Vexata, Hammerspace, and Cohesity, Lumina Networks, and others.
Recent Developments
- Microsoft’s New Team for Data Center Automation: Microsoft has formed a new team focused on research in data center automation and robotics. This move highlights the significant role of automation in optimizing data center operations and preventing outages.
Software-Defined Data Center Market Segmentation
The software-defined data center market is segmented by component, enterprise size, type, deployment mode, and vertical.
By Component
- Solutions and Services: The services segment is expected to witness the fastest growth during the forecast period, with a CAGR of 20.62%. This growth is driven by organizations’ interest in achieving optimized workload management efficiently and securely. The demand for services accompanying software-based solutions is also rising due to the complexities involved, which often require external support beyond traditional IT capabilities.
By Deployment Mode
- Public, Private, and Hybrid:
- Public Deployment Mode: This mode held the largest market share, over 50%, in 2023. The adoption of new technologies like server virtualization and edge computing has increased public cloud investment. Many data centers and managed service providers (MSPs) have transitioned to the software-defined data center service model, which uses virtualization to isolate processing hardware in software form, reducing infrastructure constraints.
- Private Deployment Mode: This mode is the second largest market share holder during the forecast period, driven by the increased adoption of cost-effective, scalable, and secure solutions.
- Hybrid Deployment Model: This model is projected to grow at the highest CAGR of 20.4%, due to the proliferation of cloud-based solutions in small and medium-sized businesses (SMBs).
Market Segmentation and Sub-Segmentation Included Are:
By component
- Hardware
- Software
- Services
By Enterprise Size
- Large Enterprises
- Small and medium-sized enterprises (SMEs)
By type
- Software-Defined Computing (SDC)
- Software-Defined Storage (SDS)
- Software-Defined Data Center Networking (SDDCN)
- Automation and Orchestration
By Deployment Mode
- Public
- Private
- Hybrid
By Vertical
- BFSI
- IT and Telecom
- Government and Defense
- Healthcare
- Education
- Retail
- Manufacturing
- Others
Regional Analysis
- North America: This region is fully saturated as most end-user industries have already adopted or upgraded their data center infrastructure. The US dominates the market in North America due to several factors:
- It is a hub for key telecommunications companies.
- It has mature SDDC solution providers.
- It hosts a pool of innovative end-user industries that readily adopt new technologies to enhance business efficiency.
Key Takeaways
- The software-defined data center market is expanding due to the demand for agility, scalability, and cost efficiency in data center operations.
- Cloud-based software-defined data centers are the preferred deployment mode due to their scalability and ease of management.
- The IT & telecom and BFSI sectors are likely to remain the leading adopters of software-defined data centers, as these industries heavily rely on data-intensive operations.
Table of Contents
- Introduction
- Industry Flowchart
- Research Methodology
- Market Dynamics
- Impact Analysis
- Impact of Ukraine-Russia war
- Impact of Economic Slowdown on Major Economies
- Value Chain Analysis
- Porter’s 5 Forces Model
- PEST Analysis
- Software-Defined Data Center Market Segmentation, By Component
- Software-Defined Data Center Market Segmentation, By Enterprise Size
- Software-Defined Data Center Market Segmentation, By type
- Software-Defined Data Center Market Segmentation, By Deployment Mode
- Software-Defined Data Center Market Segmentation, By Vertical
- Regional Analysis
- Company Profile
- Competitive Landscape
- USE Cases and Best Practices
- Conclusion
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