Menu
​Software-defined adoption rates grow, but vendors face challenges

​Software-defined adoption rates grow, but vendors face challenges

Large enterprise customers are in the early stages of trialling SDN solutions with adoption set to expand.

Large enterprise customers are in the early stages of trialling Software-Defined Networking (SDN) solutions to reduce network bottlenecks, and as the technological and, ultimately, business value of the SDN architecture is established, adoption will expand.

Notably, vendors will need to help customers evolve their siloed internal organisations to support IT transformation and enable SDN to flourish.

As such, Technology Business Research estimates a CAGR of 70.2 percent for global enterprise SDN revenue from 2015 to 2020 to $US12 billion, composing a substantial portion of global enterprise networking infrastructure revenue and displacing legacy technologies.

“Adoption is still fairly small and concentrated,” says Krista Macomber, Data Centre Senior Analyst, TBR.

“But 2016 will be a telling year as standards bodies, such as the Open Networking Foundation, mature and a growing number of success stories from trial deployments are cultivated. This will pave a path to accelerated customer adoption, increasingly at the expense of legacy technologies.”

Challenges ensue for hardware-centric vendors, such as Cisco, as competitors are investing in creating ways to decouple software from hardware, making white-box hardware increasingly feasible and challenging hardware-centric vendors’ revenue bases.

For Macomber, strategic alliances abound as SDN vendors seek to quickly and cost-effectively deliver complete solutions to market.

For example, SDN controller provider Big Switch Networks works closely with Dell to provide preintegrated appliances.

Consequently, TBR expects alliance activity to grow in complementary, strategic areas such as hyper-converged platforms and security.

Strategic SDN alliances will also enable vendors to expand revenue streams by addressing broader use cases - this climate of openness and coinnovation, which underscores customers’ desires for open, flexible networking solutions, will result in a diversified, competitive landscape.

“Standards bodies lay the groundwork to overcome many customer pain points, such as workload bottlenecks and lack of flexibility,” adds Stephanie Long, Data Centre Research Analyst, TBR.

“Barriers to entry, such as resistance to change and lack of knowledge about SDN, remain, however, and vendors will need to overcome these obstacles to foster widespread adoption.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags CloudciscoTechnology Business Researchsoftware-defined networking

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments