SDN Market Expected to Experience Strong Growth
February 09, 2016

Pete Goldin
APMdigest

Share this

SDN is not expected to truly catch on in 2016, according to some experts on APMdigest's 2016 predictions list, however a recent International Data Corporation (IDC) forecast says: the worldwide software-defined networking (SDN) market — comprising physical network infrastructure, virtualization/control software, SDN applications (including network and security services), and professional services — will have a compound annual growth rate (CAGR) of 53.9% from 2014 to 2020 and will be worth nearly $12.5 billion in 2020.

IDC says software-defined networking continues to gain market traction as an innovative architectural model capable of enabling automated provisioning, network virtualization, and network programmability for datacenters at cloud-providers and enterprise networks. Although SDN initially found favor in hyperscale datacenters and at large-scale cloud service providers, it is winning adoption in a growing number of enterprise datacenters across a broad range of vertical markets.

While the physical network, encompassing datacenter switches, will still account for the largest single segment of the SDN market in 2020, per the IDC research, the fastest growth will be found in the two software categories – the virtualization/control layer and SDN applications – which together will be worth approximately $5.9 billion. IDC expects the virtualization/control layer software market to reach $2.4 billion in 2020, with a CAGR of nearly 64% during the forecast period. SDN applications – including Layer 4-7 network and security services and analytics – are forecast to achieve a CAGR of 66% through 2020, when they will account for revenue of more than $3.5 billion.

"Cloud computing and the 3rd Platform have driven the need for SDN, which will represent a market worth more than $12.5 billion in 2020. Not surprisingly, the value of SDN will accrue increasingly to network-virtualization software and to SDN applications, including virtualized network and security services. Large enterprises are now realizing the value of SDN in the datacenter, but ultimately, they will also recognize its applicability across the WAN to branch offices and to the campus network," said Rohit Mehra, VP, Network Infrastructure at IDC.

“While networking hardware will continue to hold a prominent place in network infrastructure, SDN is indicative of a long-term value migration from hardware to software in the networking industry. For vendors, this will portend a shift to software- and service-based business models, and for enterprise customers, it will mean a move toward a more collaborative approach to IT and a more business-oriented understanding of how the network enables application delivery," said Brad Casemore, Director of Research for Datacenter Networking at IDC.

Share this

The Latest

January 19, 2018

Confidence in satisfying and supporting core IT has diminished due in part to a strain on declining IT budgets and initiatives now progressing beyond implementation into production mode, according to TEKsystems' annual IT Forecast research ...

January 18, 2018

Making predictions is always a gamble. But given the way 2017 played out and the way 2018 is shaping up, odds are that certain technology trends will play a significant role in your IT department this year ...

January 17, 2018

With more than one-third of IT Professionals citing "moving faster" as their top goal for 2018, and an overwhelming 99 percent of IT and business decision makers noticing an increasing pace of change in today's connected world, it's clear that speed has become intrinsically linked to business success. For companies looking to compete in the digital economy, this pace of transformation is being driven by their customers and requires speedy software releases, agility through cloud services, and automation ...

January 16, 2018

Looking back on this year, we can see threads of what the future holds in enterprise networking. Specifically, taking a closer look at the biggest news and trends of this year, IT areas where businesses are investing and perspectives from the analyst community, as well as our own experiences, here are five network predictions for the coming year ...

January 12, 2018

As we enter 2018, businesses are busy anticipating what the new year will bring in terms of industry developments, growing trends, and hidden surprises. In 2017, the increased use of automation within testing teams (where Agile development boosted speed of release), led to QA becoming much more embedded within development teams than would have been the case a few years ago. As a result, proper software testing and monitoring assumes ever greater importance. The natural question is – what next? Here are some of the changes we believe will happen within our industry in 2018 ...

January 11, 2018

Application Performance Monitoring (APM) has become a must-have technology for IT organizations. In today’s era of digital transformation, distributed computing and cloud-native services, APM tools enable IT organizations to measure the real experience of users, trace business transactions to identify slowdowns and deliver the code-level visibility needed for optimizing the performance of applications. 2018 will see the requirements and expectations from APM solutions increase in the following ways ...

January 10, 2018

We don't often enough look back at the prior year’s predictions to see if they actually came to fruition. That is the purpose of this analysis. I have picked out a few key areas in APMdigest's 2017 Application Performance Management Predictions, and analyzed which predictions actually came true ...

January 09, 2018

Planning for a new year often includes predicting what’s going to happen. However, we don't often enough look back at the prior year’s predictions to see if they actually came to fruition. That is the purpose of this analysis. I have picked out a few key areas in APMdigest's 2017 Application Performance Management Predictions, and analyzed which predictions actually came true ...

January 08, 2018

The annual list of DevOps Predictions is now a DEVOPSdigest tradition. DevOps experts — analysts and consultants, users and the top vendors — offer predictions on how DevOps and related technologies will evolve and impact business in 2018 ...

January 05, 2018

Industry experts offer predictions on how Network Performance Management (NPM) and related technologies will evolve and impact business in 2018 ...