Software Defined Data Center (SDDC) Market Size, Share, Opportunities, And Trends By Solution (Software Defined Network (SDN), Software Defined Storage (SDS), Others), By End User (Colocation Providers, Cloud Providers, Enterprises), And By Geography - Forecasts From 2024 To 2029

The Software-Defined Data Center (SDDC) market is expected to grow at a CAGR of 18.93%, reaching a market size of US$303.221 billion in 2029 from US$90.095 billion in 2022.

"The market needs software-defined data centers (SDDCs) since it requires a more adaptable data center infrastructure that also increases the need for storage, computing power and complex network. SDDC is a data center in which all infrastructure is virtualized and delivered as a service. Due to the growing need for software-defined data centers. Hence, it also provides a solution to support both legacy enterprise applications and new cloud computing services

The market is even being driven by the rapid growth of colocation and cloud data centres across the world due to the increase in usage of cloud computing and advancing technologies which is driving the demand for software-defined data centers.

The software-defined data center market growth is also attributed to the cost reduction factor as it helps businesses to not purchase hardware, or acquire vendor-specific skills to maintain and operate it and even manage upgrades to physical machines. Increasing security threats that involve loss of critical information can be seen to be affecting the market growth of these data centres. These virtualized data centres help in running applications on the network for creating, provisioning, and deploying network resources in real-time adding or removing switches, routers, and servers as the need arises.

What are the software-defined data center (SDDC) market growth drivers?

• The increasing demand for connectivity is a growing Software-defined Network (SDN)

The software-defined network has a notable market share in the software-defined data centre market. The market growth in this segment is majorly attributed to the increasing need for better connectivity around the world as connecting enterprise branches, clients, and vendors through a virtualized network will provide businesses with better access to resources and wider reach. The software-defined data centre market is also growing due to the exponential growth of big data in the communication and technology industries.

The software-defined storage also holds a significant market share in software-defined data centres due to the continuous increase in data generation worldwide on account of the increasing digitization of business functions and increasing overall internet penetration. Software-defined storage is providing more virtual and scalable storage space for enterprises-owned data centres, cloud data centres, and colocation data centres thus supporting their revenue generation strategies. The increase in usage of software-defined networks and storage is due to a cost reduction, lower time to service delivery, and better flexibility, scalability, and management of multiple infrastructures at once.

• Colocation providers have a significant share of the market due to access to virtual space

The software-defined data centre market has been segmented into colocation providers, cloud providers, and enterprises. Together, colocation providers and cloud providers hold a significantly large market share. These vendors are showing a continuous increase in the demand for software-defined data centres to reduce their costs and increase their virtual space to provide their clients with more storage space and better networking solutions. The demand for software-defined data centres is also increasing on account of the generation of huge volumes of data every day, which is driving with it the demand for quicker access to big data which is provided by software-defined data centres through virtualization and cloud technology, and by using advanced data managed solutions that help in monitoring and creating backups of huge datasets. Enterprises are expected to continue holding a significant market share in the software-defined data centre market over the forecast period. The increasing demand for storage space, better networking, and security is making enterprises move towards using software-defined data centres for higher efficiency and cost-effectiveness.

Major challenges hindering the growth of the software-defined data center (SDDC) market:

• Lack of Acceptance of Virtualization Standards Globally to Obstruct Market Growth

Due to the growing acceptance of software defined data centers, there is currently no worldwide standard for SDDCs.If multi-controller SDN architecture lack single virtualization standard then SDN controllers built by different vendors may exhibit inconsistent or even deceptive behavior. An increase in network traffic congestion can occur when there are several controllers in use simultaneously. When converting traditional data centers into software-defined data centers, the absence of standards brings up serious interconnection problems. The use of multi-controller SDN architecture in SDDCs is limited by integration problems and interoperability brought on by a lack of internationally recognized virtualization standards, which is also likely to limit market growth.

What are the key geographical trends shaping the software-defined data center (SDDC) market?

• Asia Pacific is projected to grow at a high rate during the forecast period

The Asia-Pacific region is experiencing the fastest growth in this market due to increased economic expansion and creation of many startups, fast embracing of smartphones and internet, as well as increased need for similar businesses to thrive. The next few years are expected to witness a significant rise in hybrid cloud usage rates within Asia-Pacific due to its cost efficiency, scalability and security features, agility being an added advantage. The Asia-Pacific region is experiencing the quickest growth, mainly due to the consistent economic growth, resulting in many startups springing up. Moreover, there has been rapid adoption of smartphones and use of the internet in this region. Conversely, the demand for similar businesses has witnessed an increase.

Recent developments in the software-defined data center (SDDC) market:

• In December 2023, the Leading provider of comprehensive hybrid and multi-cloud technology solutions, Rackspace Technology®, recently announced the release of SDDC (Software Defined Data Center) Enterprise and Business for SAP, utilizing VMware virtualized networking, storage, compute, and cloud management.
• In February 2022, leading hybrid multi-cloud computing provider Nutanix announced the global launch of a streamlined product line to address rapidly evolving customer needs. This involves Nutanix Unified Storage (NUS) with software-defined storage that is distributed and supports a variety of globally deployed applications by enabling multiple protocols (volumes, files, and objects).
• In May 2022, the world's leading provider of infrastructure software and semiconductor solutions, Broadcom Inc., and enterprise software pioneer VMware, Inc., jointly announced an agreement whereby Broadcom will purchase all of VMware's outstanding shares for a cash and stock deal estimated to be worth USD 61 billion. After the close of the acquisition, Broadcom's current infrastructure and security software solutions will be integrated into a larger VMware, with the Broadcom Software Group becoming part of VMware.

Software Defined Data Center (SDDC) Market is analyzed into the following segments:

• By Solution
  • Software-defined Network (SDN)
  • Software-defined Storage (SDS)
  • Others
• By End-User
  • Colocation Providers
  • Cloud Providers
  • Enterprises
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Taiwan
    • Thailand
    • Indonesia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. SOFTWARE-DEFINED DATA CENTER (SDDC) MARKET BY SOLUTION

5.1. Introduction

5.2. Software-defined Network (SDN)

5.3. Software-defined Storage (SDS)

5.4. Others

6. SOFTWARE-DEFINED DATA CENTER (SDDC) MARKET BY END-USER

6.1. Introduction

6.2. Colocation Providers

6.3. Cloud Providers

6.4. Enterprises

7. SOFTWARE-DEFINED DATA CENTER (SDDC) MARKET BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. By Solution

7.2.2. By End-User

7.2.3. By Country

7.2.3.1. USA

7.2.3.2. Canada

7.2.3.3. Mexico

7.3. South America

7.3.1. By Solution

7.3.2. By End-User

7.3.3. By Country

7.3.3.1. Brazil

7.3.3.2. Argentina

7.3.3.3. Others

7.4. Europe

7.4.1. By Solution

7.4.2. By End-User

7.4.3. By Country

7.4.3.1. Germany

7.4.3.2. France

7.4.3.3. United Kingdom

7.4.3.4. Spain

7.4.3.5. Others

7.5. Middle East and Africa

7.5.1. By Solution

7.5.2. By End-User

7.5.3. By Country

7.5.3.1. Saudi Arabia

7.5.3.2. Israel

7.5.3.3. UAE

7.5.3.4. Others

7.6. Asia Pacific

7.6.1. By Solution

7.6.2. By End-User

7.6.3. By Country

7.6.3.1. China

7.6.3.2. Japan

7.6.3.3. South Korea

7.6.3.4. India

7.6.3.5. Taiwan

7.6.3.6. Thailand

7.6.3.7. Indonesia

7.6.3.8. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Hewlett Packard Enterprise Development LP

9.2. Vista Equity Partners and Evergreen Coast Capital (Citrix Systems Inc.)

9.3. Dell Inc.

9.4. Oracle

9.5. Cisco Systems, Inc.

9.6. Aviat Networks, Inc. (NEC Corporation)

9.7. Fujitsu

9.8. IBM

9.9. Arista Networks, Inc.

9.10. VMware Inc.

9.11. Nexenta by DDN, Inc

Hewlett Packard Enterprise Development LP

Vista Equity Partners and Evergreen Coast Capital (Citrix Systems Inc.)

Dell Inc.

Oracle

Cisco Systems, Inc.

Aviat Networks, Inc. (NEC Corporation)

Fujitsu

IBM

Arista Networks, Inc.

VMware Inc.

Nexenta by DDN, Inc