Skip to main content

Enterprise Software-Defined Networking Market Upside

Enterprise networking is experiencing a significant transformation, similar to the telecom service provider sector. The data center and enterprise software‑defined networking (SDN) market increased by 82 percent in 2015 from the prior year -- reaching $1.4 billion, according to the latest worldwide market study by IHS.

New SDN use cases continue to emerge, with 2015 including the establishment of the SD-WAN market. Many new startups vendors, WAN optimization appliance vendors and some enterprise networking vendors have entered the market, now IHS has forecast SD-WAN revenue to reach $1.3 billion by 2020.

Growth for SDN-capable Ethernet switches and SDN controllers continues to grow, with early players, pure-play SDN startups and traditional switch vendors gaining traction as customer deployments escalate.

Enterprise SDN Market Development Trends

Regionally, North America, Europe, the Middle East and Africa (EMEA), Asia-Pacific and the Caribbean and Latin America (CALA) were all up in 2015 for data center and enterprise SDN hardware and software revenue.

"This year we look for new deployments of SDN and the scaling up of existing deployments," said Cliff Grossner, senior research director at IHS Technology. "We continue to see vendors add to their SDN-capable products and organize new open source projects, adjusting their businesses to be part of the SDN‑driven transformation."


With the data center and enterprise SDN market embracing open source software and open hardware designs, the number of deployed networking solutions based upon open solutions is expected to multiply, and open source software for networking will mature as the integration of individual components creates a complete ecosystem.

However, Grossner cautioned, "We cannot ignore the hardware. Innovation in networking software is really ramping up, with open source taking the network world, just as it did with general computing over the last 10 years."

Anticipated SDN Market Share Transitions

But it is important not to lose sight that bare metal switching can provide more than a fixed-function merchant silicon data plane. IHS believes that there's room for programmable silicon in bare metal switches that is software customizable to meet evolving application requirements, removing the need to replace silicon to innovate.

According to the IHS assessment, the top SDN market share positions are anticipated to change hands frequently. For 2015, the leaders in the individual data center and enterprise LAN SDN categories were White Box for bare metal switches, Dell for branded bare metal switches, VMware for SDN controllers and Hewlett Packard Enterprise for SDN-capable (in-use and not-in-use) branded Ethernet switch ports.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno