Skip to main content

SDN Revenue will Grow by 72% CAGR Through 2020

The legacy enterprise networking environment within enterprise data centers continues to transition away from proprietary platforms to more open standards-based solutions. Traditional hardware vendors will gradually embrace the trend, as their customers seek to lower networking costs and improve performance.

Software-defined networking (SDN) is approaching adoption by an early majority of enterprises and will compose nearly 40 percent of global enterprise network infrastructure revenue -- that's about $12.7 billion by 2020 -- according to the latest market study by Technology Business Research (TBR).

Vendor revenue displacement will be incremental during this time, as SDN solutions largely coexist with legacy networking technologies. However, the ongoing virtualization of network functions is already starting to disrupt the incumbent status-quo.

SDN Market Development Opportunities

"Today’s business environment is characterized by globally distributed pools of information and workers as well as the need for real-time responsiveness. Network managers face new security threats and increasingly demanding traffic requirements that traditional architectures struggle to address," said Krista Macomber, senior analyst at TBR.

Enterprises are beginning to deploy SDN technologies to effectively serve the modern workload ecosystem. Early adopters of SDN are already experiencing benefits, such as enhanced network monitoring and more agile IT service delivery, which is driving the transition from trial to production usage.

However, several key challenges remain, including demand for better internal change management, and the lack of a clearly defined set of business use cases. These issues must be overcome, before SDN architecture adoption reaches the broader enterprise networking mainstream.

Technological maturity -- as detailed by the Open Networking Foundation plans to merge with On.Lab -- could lay the foundation for further adoption, which TBR analysts expect to be accelerated by vendors.

"SDN promises to introduce much-needed agility into customer environments. However, for customers, getting there requires navigating a costly and complex path spanning not only technology but also business silos," Macomber said.

According to the TBR assessment, vendors sharing their early success stories should help to validate the usability benefits of SDN, as well as better align the IT organization with evolving line-of-business (LoB) leader digital transformation infrastructure needs.

Outlook for SDN Market Momentum

As SDN deployments broaden, it will likely become evident that one solution can't meet all client requirements. Many enterprises are deploying multiple SDN technologies to support core networking functions as well as adjacent, specific use cases such as micro-segmentation.

Consequently, the networking vendor landscape is becoming less combative, as embracing the market reality of increasing demand for open networking technologies seems unavoidable -- as an example, even the reluctant legacy networking vendors like Cisco and VMware are moving toward SDN acceptance.

TBR expects, with time, the market will consolidate among a smaller number of very large, multi-platform vendors that can accommodate customer demand for more holistic networking and broader data center solutions based upon open technology standards.

Popular posts from this blog

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Warehouse Robot Deployment Gains New Momentum

The retail and wholesale back-office infrastructure market is being transformed by technology. The warehousing industry has accelerated automation efforts due to the increased order volume and labor shortages driven by the global pandemic. In addition to technology solutions such as handheld devices with enhanced capabilities, autonomous, collaborative, and mobile robots are proving to be the fastest-growing productivity-enhancing solution in the warehouse workspace. Commercial Robotics Market Development According to the latest worldwide market study by ABI Research, global commercial robot revenue in warehouses will have a Compounded Annual Growth Rate (CAGR) of over 23 percent from 2021 to 2030 and exceed $51 billion by 2030. "Mobile robots are at the heart of the warehouse robotics market and account for most shipments and revenue. These robots, made up of Autonomous Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), are being used to move goods within the warehouse a

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g