The Business Research Company’s report on the Software Defined Data Center Market provides insights into the global market size, growth rate, regional distribution, competitive landscape, key segments, emerging trends, and strategic opportunities.
How have key drivers contributed to the rapid growth of the software defined data center market?
The growing adoption of digitalization is expected to be a significant driver for the growth of the software defined data center market. The adoption of digitalization is increasing due to the need for increased productivity, lowering operational costs, enabling faster decision-making, increasing efficiency, technological advancements, push towards digitalization from stakeholders, and others. The increasing adoption of digitalization will generate a huge amount of data that needs to be stored, driving the need for software defined data centers. This need for data centers will create a huge demand for data center services to set up, manage, and operate data centers. For instance, February 2024, according to an Amazon UK, UK-based one of the e-commerce company, the use of AI by UK businesses increased by 31% between 2022 and 2023. Moreover, adoption of digital technology and AI could boost the UK economy by £520 billion by 2030 and help the country achieve its goal of being a tech superpower by 2028. Therefore, the growing adoption of digitalization will drive the software defined data center market growth.
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How has the software defined data center market size evolved, and what are the latest forecasts for its expansion?
The software defined data center market size has grown exponentially in recent years. It will grow from $75.85 billion in 2024 to $91.35 billion in 2025 at a compound annual growth rate (CAGR) of 20.4%. The growth in the historic period can be attributed to industry standards and vendor offerings, scalability and elasticity, demand for streamlined operations, software-centric approach, cost efficiency and resource optimization.
The software defined data center market size is expected to see exponential growth in the next few years. It will grow to $226.29 billion in 2029 at a compound annual growth rate (CAGR) of 25.5%. The growth in the forecast period can be attributed to vendor innovation and offerings, edge computing and IoT growth, demand for automation and orchestration, cloud adoption and hybrid its environments, continued emphasis on digital transformation. Major trends in the forecast period include open source and standardization, sustainability and green it initiatives, data center modernization and efficiency, composable infrastructure development, zero trust security models, software-defined networking (SDN) advancements.
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Which major companies dominate the software defined data center market?
Major companies operating in the software defined data center market include VMware Inc., Microsoft Corporation, Hewlett Packard Enterprise Company, Dell Technologies Inc., Oracle Corporation, Cisco Systems Inc., Citrix Systems Inc., International Business Machines Corporation, SAP SE, Hitachi Ltd., Fujitsu Ltd., NEC Corporation, Juniper Networks Inc., Western Digital Corporation, Nutanix, Red Hat Inc., Huawei Technologies Co. Ltd., Lenovo Group Limited, NetApp Inc., Pure Storage Inc., Tintri Inc., DataCore Software, Scale Computing, Pivot, StratoScale, Coho Data Inc., Maxta Inc., Hedvig Inc., Diamanti Inc., Robin Systems Inc.
What trends will shape the future of the soft tissue repair market?
Growing adoption by hyper-scale cloud is a major trend in the software defined data center market. Hyper-scale is about massive scale in computing, typically for big data or cloud computing. Hyperscale infrastructure is designed for horizontal scalability and leads to high-performance levels, throughput, and redundancy to enable fault tolerance and high availability. Hyperscale computing often relies on massively scalable server architectures and virtual networking. Hyperscale cloud solutions deliver the most cost-effective approach to addressing demanding requirements. For instance, in December 2023, Rackspace Technology, Inc., a US-based cloud computing company, launched its SDDC (Software Defined Data Center) Enterprise and Business solutions for SAP, powered by VMware’s virtualized infrastructure. These solutions support mission-critical SAP and SAP HANA environments with integrated hardware and software stack on Dell VxRail, providing a turnkey experience. The SDDC offerings include various add-on services, such as VMware vRealize Suite, operations management, disaster recovery (DR), and VMware Hybrid Cloud Extension (HCX). They also feature storage options that meet SAP’s strict requirements for the latest SAP HANA database, including S/4 HANA.
Which region dominates the software defined data center market, and what factors contribute to its leadership?
North America was the largest region in the software defined data center market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the software defined data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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How is the software defined data center market segmented, and which segment holds the largest share?
The software defined data center market covered in this report is segmented –
1) By Type: Software Defined Computing (SDC), Software-Defined Storage (SDS), Software-Defined Data Center Networking (SDDCN), Automation And Orchestration
2) By Component: Hardware, Software, Services
3) By Organization Size: Small And Medium-Sized Enterprises (SMEs), Large enterprises
4) By Vertical: Banking, Financial Services And Insurance (BFSI), Information Technology (IT) And Telecom, Government And Defense, Healthcare, Education, Retail, Manufacturing, Others Verticals
Subsegments:
1) By Software Defined Computing (SDC): Virtualization Solutions, Resource Management Tools, Load Balancing Software, Application Delivery Controllers
2) By Software-Defined Storage (SDS): Storage Virtualization Solutions, Object Storage Software, Data Protection And Backup Solutions, Storage Management Platforms
3) By Software-Defined Data Center Networking (SDDCN): Network Virtualization Software, Software-Defined WAN (SD-WAN) Solutions, Network Management And Monitoring Tools, Load Balancers And Routers
4) By Automation And Orchestration: Workflow Automation Tools, Cloud Orchestration Platforms, Configuration Management Software, Infrastructure As Code (IaC) Solutions
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What defines the structure and scope of the software defined data center market?
Software defined data center (SDDC) refers to a data storage facility where networking, storage, CPU, and security are all virtualized and offered as a service. SDDCs are similar to a traditional data center, with some prominent differences, specifically through their use of abstraction, virtualization, automation, and resource pooling.
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