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The software-defined compute market share is expected to increase to USD 8.43 billion by 2026, and the market's growth momentum will accelerate at a CAGR of 13.36%.
This software-defined compute (SDC) market research report extensively covers market segmentation by the following;
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The software-defined compute market software-defined compute (SDC) report also offers information on several market vendors, including Amazon.com Inc., Alphabet Inc., BMC Software Inc., Broadcom Inc., Cisco Systems Inc., Citrix Systems Inc., Datadog Inc., Docker Inc., DXC Technology Co., Dynatrace Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Inspur Group, International Business Machines Corp., Micro Focus International Plc, Microsoft Corp., Nutanix Inc., Oracle Corp., ScienceLogic Inc., Splunk Inc., and VMware Inc. among others. Furthermore, this report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches.
The extended partnerships, strategic relationships, and M&A is notably driving the SDC market growth, although factors such as security challenges may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the software-defined compute industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Software-Defined Compute Market Driver
One of the key factors driving the global software-defined compute industry growth is the extended partnerships, strategic relationships, and M&A. The new partnerships between vendors, cloud solution providers, and data center solutions providers are aimed at sharing their resources to offer enhanced services to customers. In addition, vendors are concentrating on offering container infrastructure software solutions to enterprises through joint collaborations. For instance, Red Hat, the world's leading provider of enterprise open source solutions, and Nutanix, the world's leading provider of hybrid multi-cloud computing, announced a strategic partnership in July 2021 to enable a powerful solution for building, scaling, and managing cloud-native applications on-premises and in hybrid clouds. Such activities are expected to drive the growth of the market in focus during the coming years.
Key Software-Defined Compute Market Trend
Emergence of software-defined data centers is one of the key software-defined compute market trends that is expected to impact the industry positively in the forecast period. SDDCs enable enterprises to virtualize infrastructure resources such as compute, storage, security, and network. They will further enable enterprises to manage and control IT infrastructure using software by adding an abstraction that automates infrastructure management. Vendors in the global software-defined compute market are offering software-defined data center solutions to enterprises. For instance, VMware offers multiple options for enterprises to implement software-defined data center solutions. For private clouds, VMware offers vCloud Suite, an enterprise-ready private cloud solution with a software-defined data center architecture. Such factors will continue to support market growth in the coming years.
Key Software-Defined Compute Market Challenge
One of the key challenges to the global software-defined compute industry growth is security challenges. The regulatory compliances on data protection, such as the General Data Protection Regulation (GDPR), have forced enterprises to consider the security of data assets as one of the prime areas of importance. In the event of unsecured migration, there are potential chances for cyberattacks. A virtual machine escape enables hackers to gain control over a hypervisor through an infected virtual machine. With the advent of containerization, enterprises are aggressively deploying containerized applications without completely verifying the possibilities of security threats. One of the major concerns over containerization is that a hacker can hack a container and subsequently access the host system. For example, Containers are now vulnerable to a new kind of cyberattack called crypto-jacking, a process in which the computation power of the systems will be used to mine cryptocurrencies such as Bitcoin. Such factors may limit the market growth in the forecast years.
This software-defined compute market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the software-defined compute market encompasses successful business strategies deployed by the key vendors. The software-defined compute market is fragmented and the vendors are deploying growth strategies such as partnerships and M&A activities to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The software-defined compute market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
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41% of the market's growth will originate from North America during the forecast period. The US is the key market for software-defined compute (SDC) in North America. Market growth in this region will be faster than the growth of the market in Europe.
The rising demand for high connectivity and bandwidth will facilitate the software-defined compute market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The COVID-19 pandemic had a favorable influence on the software-defined compute market in this region in 2020. Owing to the pandemic, governments in many nations around the region imposed lockdowns in 2020, forcing people to stay at home in order to prevent the virus from spreading. As a result, industries across the region were forced to undertake numerous trade activities online, leading to the widespread use of virtual private networks (VPNs) for remote work and teleconferencing in North America. Such factors are expected to drive the growth of the market during the forecast period.
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The SDC market share growth by the cloud system software segment will be significant during the forecast period. The cloud system software segment is set to witness significant growth in the coming years, owing to the high demand for hybrid cloud solutions from enterprises and the new partnerships by the vendors in the global software-defined compute market.
This report provides an accurate prediction of the contribution of all the segments to the growth of the software-defined compute market size and actionable market insights on post COVID-19 impact on each segment.
Technavio categorizes the global software defined compute market as a part of the global Internet services and infrastructure market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the software-defined compute market during the forecast period.
Our report provides extensive information on the value chain analysis for the software-defined compute market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
Software-Defined Compute Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.36% |
Market growth 2022-2026 |
$ 8.43 billion |
Market structure |
Fragmented |
YoY growth (%) |
12.51 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key consumer countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Amazon.com Inc., Alphabet Inc., BMC Software Inc., Broadcom Inc., Cisco Systems Inc., Citrix Systems Inc., Datadog Inc., Docker Inc., DXC Technology Co., Dynatrace Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Inspur Group, International Business Machines Corp., Micro Focus International Plc, Microsoft Corp., Nutanix Inc., Oracle Corp., ScienceLogic Inc., Splunk Inc., and VMware Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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