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The software-defined data center (SDDC) market share is expected to increase by USD 84.59 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 24.31%.
This software-defined data center (SDDC) market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers software-defined data center (SDDC) market segmentation by component (SDS, SDN, and SDC) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The software-defined data center (SDDC) market report also offers information on several market vendors, including Arista Networks Inc., AT and T Inc., Cisco Systems Inc., Citrix Systems Inc., Commvault Systems Inc., DataCore Software Corp., Dell Technologies Inc., EQT AB, Fujitsu Ltd., Hitachi Ltd., HP Inc., Huawei Investment and Holding Co. Ltd., International Business Machines Corp., Juniper Networks Inc., Lenovo Group Ltd., Microsoft Corp., Nokia Corp., Nutanix Inc., Oracle Corp., and Scality Inc. among others.
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The demand for data center modernization is notably driving the software-defined data center (SDDC) market growth, although factors such as cybersecurity issues may impede the 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 data center (SDDC) 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 Data Center (SDDC) Market Driver
The demand for data center modernization is one of the key drivers supporting the software-defined data center (SDDC) market growth. The use of AI, ML, and deep learning (DL) generates huge volumes of data that require efficient compute, storage, and network infrastructures. SDDC solutions are designed to handle heavy workloads by dynamic workload allocation to compute, storage, and network resources. Vendors in the SDDC market offer SSDC solutions to enterprises across industry verticals as per the business requirements. Some of the enterprises which adopted SDDC solutions include NIGAY SAS (Nigay), one of the leaders in caramel production, faced challenges to scale storage, network, and computing capacities. It opted VMware's SDDC solutions, i.e., vSphere for computing, vSAN for storage, and NSX for networking. The new solution from VMware enabled Nigay to overcome downtime challenges, enhance flexibility, and optimize hardware resources. Therefore, the global SDDC market is expected to witness significant demand during the forecast period, fueled by the enterprises' willingness to modernize their data centers because of the surge in the adoption of new technologies such as big data analytics and shift towards digital transformation.
Key Software-Defined Data Center (SDDC) Market Trend
Implementation of AI in data centers is another factor supporting the software-defined data center (SDDC) market growth. The energy efficiency of data centers is being improved by applying AI, which can compute servers' performance, power systems, and cooling systems. It enables faster decision-making and efficiency and provides data insights into the functions of internal systems. Datacenter service providers are using AI in data center automation software to eliminate human resources and facilitate energy-efficient operations. Adopting AI in data center automation processes also facilitates the energy cooling process, with supervised control over mechanical cooling. This is done by making changes to the cooling process and allowing effective use of power in the overall data center process. Significantly, the use of AI aims to increase performance and reduce downtime and human errors. Such factors will propel the demand for the global SDDC market during the forecast period.
Key Software-Defined Data Center (SDDC) Market Challenge
Cybersecurity issues is one of the factors hindering the software-defined data center (SDDC) market growth. The failure to comply with the General Data Protection Regulation (GDPR), which came into effect in 2018, can lead to companies being fined a maximum of 4% of their annual global revenue or $22.9 million. Moreover, the increasing popularity and demand for cryptocurrency increase the possibility of miners hacking into data centers. For instance, in February 2018, Radiflow, a security company, found that the servers of a water utility in Europe have attacked for mining a cryptocurrency, Monero. This attack impacted the industrial control systems (ICS) and supervisory control and data acquisition (SCADA) servers. The number of distributed denials of service (DDoS) attacks on data centers has increased over the last few years. In DDoS cyberattacks, hackers make data center resources unavailable to end-users by continuously flooding requests to servers. Such factors that directly impact business continuity can hinder the growth of the global SDDC market during the forecast period.
This software-defined data center (SDDC) 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.
Technavio categorizes the global software-defined data center (SDDC) market as a part of the global information technology (IT) spending 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 data center (SDDC) market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the software-defined data center (SDDC) market encompasses successful business strategies deployed by the key vendors. The software-defined data center (SDDC) market is fragmented and the vendors are deploying growth strategies such as R and D, technological innovations, strategic collaborations, M and A, market expansion activities and investments in market growth opportunities to compete in the market.
Cisco Systems Inc.
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 data center (SDDC) 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.
Our report provides extensive information on the value chain analysis for the software-defined data center (SDDC) 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.
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46% of the market's growth will originate from North America during the forecast period. US is the key market for software-defined data center (SDDC) market in North America. Market growth in this region will be faster than the growth of the market in other regions.
The rise in the adoption of cloud services will facilitate the software-defined data center (SDDC) 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 outbreak of the COVID-19 pandemic propelled the growth of the market in North America in 2020. However, lockdown norms and restrictions across various industries have multiplied digital and online transactions, which has propelled the demand for automation services and solutions. In February 2020, Google invested more than $10 billion in offices and data centers across the US. Such initiatives by the key market players will substantially drive the growth of the regional SDDC market during the forecast period.
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The software-defined data center (SDDC) market share growth by the SDS segment will be significant during the forecast period. SDS solutions address the challenges involved in traditional storage systems by eliminating the dependency on storage hardware. The entire storage system is managed and controlled via software in SDS without depending on the underlying hardware. Thus, it overcomes complexities in storage and vendor lock-in issues. Also, SDS solutions enable enterprises to utilize the existing storage systems and offer simplified data management, transparency in storage availability, and scalability. Such factors will drive the segment growth during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the software-defined data center (SDDC) market size and actionable market insights on post COVID-19 impact on each segment.
Green Data Center market - The market share is expected to increase by USD 76.59 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 19.48%.
Data Center Maintenance and Support Services market - The market size growth is expected to progress at a CAGR of 12.04% and is estimated at USD 7.69 billion from 2021 to 2026.
Containerized and Modular Data Center market - The market share is expected to increase by USD 30.16 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 15.97%.
Software-defined Compute market - The 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%.
Software-defined Storage market - The market share growth momentum will accelerate at a CAGR of 24.69% and the market share will increase by USD 44.01 billion from 2021 to 2026.
Software-Defined Data Center (SDDC) Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.31% |
Market growth 2022-2026 |
$ 84.59 billion |
Market structure |
Fragmented |
YoY growth (%) |
22.25 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 46% |
Key consumer countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Arista Networks Inc., AT and T Inc., Cisco Systems Inc., Citrix Systems Inc., Commvault Systems Inc., DataCore Software Corp., Dell Technologies Inc., EQT AB, Fujitsu Ltd., Hitachi Ltd., HP Inc., Huawei Investment and Holding Co. Ltd., International Business Machines Corp., Juniper Networks Inc., Lenovo Group Ltd., Microsoft Corp., Nokia Corp., Nutanix Inc., Oracle Corp., and Scality 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Component
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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