Press release
Government Initiatives Drive Growth in the Software Defined Data Center (SDDC) Market
Software Defined Data Center (SDDC) Market
The U.S. Department of Defense (DoD) has also embraced SDDC to enhance security and scalability for critical operations. By leveraging virtualized data centers and cloud integrations, the DoD is reducing its reliance on outdated systems while ensuring real-time communication capabilities. Similarly, PortfolioStat, a federal program led by the Office of Management and Budget (OMB), mandates agencies to optimize IT investments, encouraging the adoption of software-defined technologies to eliminate redundant infrastructure.
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Beyond cost savings, SDDC solutions also contribute to sustainability. The General Services Administration (GSA) reports that transitioning federal agencies to software-defined architectures has significantly reduced energy consumption in data centers. Optimized server utilization has led to substantial energy savings, which could potentially power thousands of American homes annually. This shift not only supports environmental goals but also improves the performance of critical government applications.
Government-Led Digital Transformation Boosts SDDC Adoption
Governments worldwide are embracing digital transformation, further driving the adoption of SDDC solutions. The European Union's Digital Strategy calls for IT modernization to improve cost efficiency, scalability, and cybersecurity compliance. In India, the Ministry of Electronics and Information Technology (MeitY) is promoting cloud-based infrastructures through initiatives like the GI Cloud (MeghRaj), which aims to deliver e-government services efficiently while reducing downtime and improving disaster recovery.
Singapore's Smart Nation Initiative is another example of SDDC integration, where the government is leveraging software-defined capabilities to manage data-driven smart city initiatives. By enabling real-time data analysis and decision-making, SDDC solutions are helping governments transition from legacy systems to agile, modern IT infrastructures, significantly increasing demand for these technologies worldwide.
Challenges in SDDC Adoption Due to High Costs and Complexity
Despite its benefits, SDDC adoption faces hurdles due to high initial costs and implementation challenges. Transitioning from traditional IT systems requires significant investment in infrastructure upgrades, employee training, and software licensing, which can be difficult for budget-constrained government agencies. Additionally, a lack of technical expertise in some organizations makes it challenging to effectively implement software-defined environments.
A report by the Government Accountability Office (GAO) highlights that many agencies struggle with proper server utilization due to limited knowledge of virtualized and software-defined technologies. Integrating SDDC with existing legacy systems further complicates the process, as migrating critical applications without disrupting operations remains a key concern. These challenges can slow down adoption, particularly for smaller agencies with limited resources.
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Market Segmentation: Solutions Lead, Services See Fastest Growth
The SDDC market is segmented into solutions and services, with solutions holding the largest market share. Governments and organizations are rapidly adopting software-defined networking, storage, and data center software to create scalable and automated IT ecosystems. Under the DCOI initiative, U.S. federal agencies have optimized server utilization rates to over 60%, leading to significant cost reductions and improved operational efficiency.
The European Commission's Digital Europe Programme is further driving growth in this segment, with a €7.5 billion investment allocated from 2021 to 2027 to modernize public sector IT infrastructure. These large-scale investments underscore the growing demand for software-defined solutions in government operations.
While solutions dominate the market, the services segment is expanding at the fastest rate. Governments increasingly rely on consultancy, implementation, and managed services to support SDDC deployments. Given the complexity of transitioning to software-defined environments, agencies seek external expertise for system integration, cybersecurity, and regulatory compliance. The Cybersecurity and Infrastructure Security Agency (CISA) highlights the crucial role of managed services in ensuring secure and resilient IT operations for the public sector.
Globally, the demand for managed services is surging as governments outsource the operation and maintenance of their software-defined infrastructures. Under Singapore's Smart Nation Initiative, for instance, managed service providers are playing a vital role in delivering secure, 24/7 monitoring and proactive maintenance of government IT systems.
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Software Defined Data Center (SDDC) Top Companies and Competitive Landscape
The growing competitive landscape of SDDC is comprehended by increasing government adoption, and a lot of major players are coming up with robust solutions tied to either public or private sector usage.
Some examples include U.S. DCOI and MeghRaj for the Indian govt. The industry outlook is optimistic owing to rising demand for virtualisation, sustainability goals, and the global digital transformation strategy, especially in North America and Asia-Pacific, which is the largest and fastest-growing market, respectively.
In January 2024, Cisco Systems partnered with Nutanix to deliver hybrid cloud services globally, combining Cisco Hyperconverged Compute with Nutanix management solutions.
Some of the key companies in the global Software Defined Data Center (SDDC) Market include:
Cisco Systems Inc
Fujitsu
Hitachi Data Systems (Hitachi Vantra)
HPE
Huawei
IBM Corporation
Juniper Networks, Inc
Microsoft Corporation
NEC Corporation of America (NEC Corporation)
NetApp, Inc
Oracle Corporation
Vmware, Inc
Software Defined Data Center (SDDC) Latest Industry Updates
In July 2023, NTT Ltd. launched a six-acre software-defined data centre campus in Chennai, India, with a capacity of 34.8 MW. The first operational facility (17.4 MW IT load) coincides with the MIST subsea cable system's arrival, enhancing India's data infrastructure.
In December 2023, Rackspace Technology Inc. introduced enterprise-grade SDDC solutions for SAP, integrating VMware virtualised management and cloud disaster recovery. virtualised management
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Software Defined Data Center (SDDC) Market Segmentation Analysis
Offering Outlook (Revenue, USD Billion; 2020-2033)
Solutions
Services
Service Model Outlook (Revenue, USD Billion; 2020-2033)
Software Defined computing
Virtualization Platforms
Hypervisors
Management Tools
Software Defined Storage
Software Virtualization Platform
Storage Management Software
Hyperconverged Infrastructure (HCI)
Software Defined Networking
SDN Controllers
SDN Infrastructure
Network Virtualization Software
Management and Operations
Automation & Orchestration
Management & Monitoring
Organization Size Outlook (Revenue, USD Billion; 2020-2033)
Large Enterprises
SMEs
End-users Outlook (Revenue, USD Billion; 2020-2033)
Enterprises
Telecom Service Providers
Cloud Service Providers
Managed Service Providers
Regional Outlook (Revenue, USD Billion; 2020-2033)
North America
United States
Canada
Mexico
Europe
Germany
France
United Kingdom
Italy
Spain
Benelux
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle East and Africa
Saudi Arabia
UAE
South Africa
Turkey
Rest of MEA
Latest Published Reports by Emergen Research:
Software Defined Data Center (SDDC) Market Size @ https://www.emergenresearch.com/industry-report/software-defined-data-center-market/market-size
Software Defined Data Center (SDDC) Market Share @ https://www.emergenresearch.com/industry-report/software-defined-data-center-market/market-share
Software Defined Data Center (SDDC) Market Trends @ https://www.emergenresearch.com/industry-report/software-defined-data-center-market/market-trends
Software Defined Data Center (SDDC) Regional Market Demand @ https://www.emergenresearch.com/industry-report/software-defined-data-center-market/regional-market-demand
Software Defined Data Center (SDDC) Market Analysis @ https://www.emergenresearch.com/industry-report/software-defined-data-center-market/market-analysis
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