Menu
​Go software-defined or go home? Market prepares for 50 percent growth boom

​Go software-defined or go home? Market prepares for 50 percent growth boom

"Cloud computing and the 3rd Platform have driven the need for SDN..."

The worldwide software-defined networking (SDN) market - comprising physical network infrastructure, virtualisation/control software, SDN applications (including network and security services), and professional services - will have a compound annual growth rate (CAGR) of 53.9 percent from 2014 to 2020 and will be worth nearly $US12.5 billion in 2020.

IDC findings back up industry claims that software-defined networking continues to gain market traction, built around its ability to provide an “innovative architectural model” capable of enabling automated provisioning, network virtualisation, and network programmability for data centres at cloud-providers and enterprise networks.

Although SDN initially found favour in hyper-scale data centres and at large-scale cloud service providers however, it is winning adoption in a growing number of enterprise data centres across a broad range of vertical markets.

Indeed, SDN delivers the agility, flexibility, and programmability that align closely with IDC's 3rd Platform for IT, especially for public and private cloud rollouts.

"Cloud computing and the 3rd Platform have driven the need for SDN, which will represent a market worth more than $US12.5 billion in 2020,” says Rohit Mehra, Vice President, Network Infrastructure, IDC.

“Not surprisingly, the value of SDN will accrue increasingly to network-virtualisation software and to SDN applications, including virtualised network and security services.

“Large enterprises are now realising the value of SDN in the data centre, but ultimately, they will also recognise its applicability across the WAN to branch offices and to the campus network.”

While the physical network, encompassing datacenter switches, will still account for the largest single segment of the SDN market in 2020, Mehra believes the fastest growth will be found in the two software categories – the virtualisation/control layer and SDN applications - which together will be worth approximately $US5.9 billion.

Consequently, IDC expects the virtualisation/control layer software market to reach $US2.4 billion in 2020, with a CAGR of nearly 64 percent during the forecast period.

SDN applications - including Layer 4-7 network and security services and analytics - are forecast to achieve a CAGR of 66 percent through 2020, when they will account for revenue of more than $US3.5 billion.

“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,” adds Brad Casemore, Director of Research for Data centre Networking, IDC.

“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.”

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags IDCSDNCloudData Centresoftware-defined networking

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments