Software Defined Data Center (SDDC) Market - 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 by 2029 from US$90.095 billion in 2022.

The demand for software-defined data centres is increasing due to the increasing demand for more flexibility in data centre infrastructure along with an increasing demand for storage space, computing power, and complex networking. A software-defined data centre (SDDC) is a data centre where the entire infrastructure is virtualized and delivered as a service. The demand for software-defined data centres is also increasing as it 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 centers 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.

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

By the end-user, 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.

Asia Pacific is expected to hold a significant share during the forecast period

Due to the proliferation of startups brought about by consistent economic growth, the quick adoption of smartphones and the internet, and the rise in demand for related businesses, the Asia-Pacific region is experiencing the fastest growth in this market. Due to its cost-effectiveness, scalability, agility, and security, hybrid cloud usage is predicted to grow significantly in the Asia-Pacific region over the next several years. It provides a common platform for both private and public clouds by automating resource allocations and tasks, expediting and streamlining application deployment, and acting as the backbone of a high-availability infrastructure. The hybrid cloud closes the gap between IT and business by enhancing agility and efficiency and providing low-cost, quick access to IT resources.

Product Offerings

• VMware Software-Defined Data Center: With the VMware approach to the SDDC, every application can run on a single platform with customizable control. The VMware SDDC architecture enables businesses to operate hybrid clouds and to make use of special features to achieve crucial results that support productivity, agility, and security. To create an SDDC and make the transition at their own pace, businesses using VMware technology have three options: use a converged infrastructure, they can build their own using reference architectures, or use a hyper-converged infrastructure where the full SDDC is delivered already executed on the customer's preferred hardware.
• Fujitsu PRIMEFLEX: PRIMEFLEX is a pre-built, thoroughly tested, and integrated set of servers, network connectivity, storage, and software. The PRIMEFLEX range of integrated systems from Fujitsu includes both traditional and hyper-converged systems. It includes reference architectures that are readily adaptable to customer-specific requirements and ready-to-use factory-installed solutions. Fujitsu provides thorough installation and setup descriptions as a standard, along with its reference architectures. A seamless integration into the on-site environment is ensured by optional installation and integration services. Fujitsu offers assistance at the solution level and additional data centre services, such as managed and hosting services, to ensure easier operation and maintenance.

Key Developments:

• 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 includes Nutanix Unified Storage (NUS), which offers software-defined storage that is distributed and can accommodate multiple protocols (volumes, files, and objects) to support a variety of globally deployed applications.
• 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. Following the acquisition closes, the Broadcom Software Group will become a part of VMware, incorporating Broadcom's current infrastructure and security software solutions into an expanded VMware.

Segmentation:

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