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SDN market expected to reach US$8 billion by 2018

August 21, 2014  

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Software-defined networking (SDN) continues to gain ground within the broader enterprise and cloud service provider markets for data centre networking. According to a new forecast from International Data Corporation (IDC), the worldwide SDN market for the enterprise and cloud service provider segments will grow from US$960 million in 2014 to over US$8 billion by 2018, representing a robust CAGR of 89.4%.

This forecast for the SDN ecosystem includes in-use physical network infrastructure, controller and network-virtualization software, SDN network and security services and related applications, and SDN-related professional services.

According to IDC, SDN has emerged as a key driver for innovation and change in networking as several market and technology factors converge such as:

* Growth of cloud applications and services across enterprise and cloud providers

* Focus on converged infrastructures (compute/storage/network) and on the software-defined datacenter

* Increased demand for network flexibility to support mission-critical technologies based on 3rd Platform technologies, particularly cloud, mobility, Big Data, and Internet of Things (IoT) applications

“SDN is taking center stage among innovative approaches to some of the networking challenges brought about by the rise of the 3rd Platform, particularly virtualization and cloud computing,” said Rohit Mehra, vice president, network infrastructure at IDC.

“With SDN’s growing traction in the data centre for cloud deployments, enterprise IT is beginning to see the value in potentially extending SDN to the WAN and into the campus to meet the demand for more agile approaches to network architecture, provisioning, and operations.”

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