Software Defined Data Center Market to Hit Sales of $214.89 billion by 2025 | Software Defined Data Center to Surpass Traditional Data Center By 2025

Global Software Defined data center market was valued at USD 53.11 Billion in 2021, and it is expected to reach a value of USD 214.89 billion by 2028, at a CAGR of 22.10% over the forecast period (2022–2028).


Westford, USA, Aug. 30, 2022 (GLOBE NEWSWIRE) -- Software Defined data center (SDDCs) is built using automation, orchestration, and other technologies that enable them to be managed more effectively. The growth in Software Defined data center market is a result of the growing demand for cognitive applications, such as big data, artificial intelligence, and cloud services. These applications require high-speed access to large amounts of raw data. As per SkyQuest analysis, by 2025, more than 90% of total enterprise data will be big data–that is at least 10 times larger than those used in past analytics initiatives. This means that businesses need not just storage and computing resources, but also specialized tools and algorithms to manage and analyze this increased volume of data.

As of 2022, we expect at least $218 billion to be spend on building new data centers and related technologies, which is around 5.5% higher than the previous year in the global Software Defined data center market. The growth has led to a number of technology vendors entering the market with new products designed specifically for this type of data center. These products include automation tools such as Puppet and Chef, orchestration platforms such as Kubernetes and Mesos, and storage solutions such as EMC's Nexenta Storage Platform.

To meet this rising demand in the global Software Defined data center market, many companies are turning to SaaS providers such as Google Cloud Platform (GCP), Amazon Web Services (AWS), IBM Bluemix and Microsoft Azure to build and manage their SDDCs. These providers offer greatly simplified deployment processes and vast array of compute, storage and networking options. Additionally, they provide ongoing support through pre-dispatching of compute resources and automatic scaling when needed.

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Software Defined Data Centers to Exceed the Number of Traditional Data Centers

By 2025, the number of Software Defined data centers will exceed the number of traditional data centers, according to a new study from SkyQuest. As of January 2021, there were a total over 8,000 data centers around the globe across 110 countries in the global Software Defined data center market. This number is up from last year’s total of 7,574 data centers. The increase in data center numbers is likely due to the growth of cloud services and the need for more reliable and secure infrastructure. US has the greatest number of data centers and accounts for around 33% of total. The UK is second with 5.7%, followed by Germany (5.5%), China (5.2%), and Canada (3.3%).

We expected the number in Software Defined data center market is expected to surpass 10,000 by 2025. The reason for this shift is simply because SDDCs are more flexible. They can be quickly adapted to changing needs and expected changes. For example, when businesses demand faster response times for their applications, SDDCs can easily be tweaked to improve performance.

This shift away in the global Software Defined data center market from traditional centralized data centers is also yielding new insights that weren’t possible before. For example, one company was able to reduce its total costs by 33% by using SDDCs instead of regular hardware servers. This allowed them to offer their customers a competitive edge in the market.

This flexibility makes it easier to keep pace with the ever-changing needs of customers and employees. In addition, it's cost-effective to operate an SDDC since users don't need to employ many specialists. As a result, businesses can save money on technology costs and specialized skills. In addition, SDDCs can be located anywhere in the world and hooked up to the cloud, making them ideal for use in emerging markets.

SkyQuest has done a detailed market analysis of the global Software Defined data center market. The report would help you in understanding how the market is changing from traditional to SDDCs, market dynamics, consumers mind set, their preferences, factors affecting their purchasing decision, current demand and supply, overall distribution of the data centers, among others.

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Top Trends in Global Software Defined data center market

Shift Towards Deploying Microservices: Microservices are a way of structuring applications so that they can be easily deployed, operated, and scaled as needed says analyst at SkyQuest. Instead of building and managing a monolithic application, each small module or service is built as a separate process on a multi-tenant server. This approach makes it easier to deploy new features and updates without affecting the rest of the system, and it also makes it possible to restart individual parts of the system or scale them out when necessary.

Deployment of Containers: Containerization is a way of packaging an application or suite of services into a self-contained unit that can be deployed on any type of server.  Containerized applications run as isolated processes with their own user rights and privileges, which makes them easy to deploy and manage in the Software Defined data center market. This approach can significantly reduce development time and make it possible to quickly spin up new instances of an application when needed.

Software Defined Networking: SkyQuest predicts that SDN will become an integral part of software defined data centers and that these facilities will be built using OpenDaylight controller platform.

Virtualization: Virtualization will play a significant role in Software Defined data center market due to its ability to provide flexible, cost-effective, and scalable resources.

Top 5 Startup in Global Software Defined data center market

  • American Tower: Acquired 24 data center from CoreSites in the US in 2021 to Gain dominance in Edge computing and 5G
  • Cologix: Owns around 40 data centers in the North American region. Wherein 29 are in prime colocation
  • CyrusOne: Operates across Europe and North America and owns more than 50 data centers. In March 2022, KKR and Global Infrastructure Partners acquired the company for approximately $15 million. The company caters its services to around 1000 customers
  • Digital Realty: a highly successful player in global Software Defined data center market. The company owns more than 284 data centers across 24 countries. In last few years, it has been on the shopping spree to acquire small players in the segment and spending billions of dollars
  • Equinix: Owns more than 224 data centers and caters its services to over 10,000 customers around the globe.

SkyQuest has profiled over 50 start-ups and leading players in global Software Defined data center market. The report would help the market participants in gaining insights about competitors’ operations, their revenue, growth plans, marketing strategies, market share, competitive landscape, future prospect, SWOT analysis, revenue pockets, consumers base, spending by each customer.

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Top Players in Global Software Defined data center market

  • VMware (US)
  • Microsoft (US)
  • HPE (US)
  • Dell Technologies (US)
  • Oracle (US)
  • IBM (US)
  • Nutanix (US)
  • Cisco (US)
  • Huawei (China)
  • Fujitsu (Japan)
  • Juniper Networks (US)
  • Commvault (US)
  • Arista Networks (US)

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