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Key Influencer in the Software Defined Data Center Market 2025: Increased Adoption Of Digitalization Driver
Key Influencer in the Software Defined Data Center Market
The surge in digitalization is anticipated to significantly fuel the expansion of the software defined data center market. The heightened adoption of digital tools and methods can be attributed to the demand for higher productivity, reduced operational expenses, swift decision making, enhanced efficiency, technological progression, and a strong push for digitalization from various stakeholders among other factors. This surge in digitalization produces massive amounts of data that need to be curated, giving rise to the need for software defined data centers. This in turn, will result in a monumental demand for data center services that cover establishment, management and operation of these centers. For example, as per Amazon UK, a significant e-commerce company based in the UK, there was a rise of 31% in AI usage by UK businesses from 2022 to 2023. Furthermore, the adoption of digital tools and AI could potentially uplift the UK economy by £520 billion by 2030, fulfilling its aim of becoming a tech superpower by 2028. Consequently, the escalating digitalization will propel the growth of the software defined data center market.
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What is the future CAGR of the software defined data center market, and how will it impact industry expansion?
The market size of the software defined data center has expanded dramatically in recent years. The market will escalate from $75.85 billion in 2024 to $91.35 billion in 2025, with a compound annual growth rate (CAGR) of 20.4%. Factors contributing to the growth in the historical period include industry standards and vendor offerings, scalability and elasticity, the necessity for streamlined operations, a software-centric approach, and cost efficiency coupled with resource optimization.
The market size of the software defined data center is anticipated to experience substantial growth in the coming years, escalating to a projected $226.29 billion in 2029 with a compound annual growth rate (CAGR) of 25.5%. The expected growth during this forecast period can be linked to many factors including vendor innovation and offerings, expansion in edge computing and IoT, increasing demand for automation and orchestration, adoption of cloud and hybrid environments, and a sustained focus on digital transformation. Major trends anticipated in this forecast period encompass open source and standardization, green IT and sustainability initiatives, modernization and efficiency in data centers, the development of composable infrastructure, the emergence of zero trust security models, and advancements in software-defined networking (SDN).
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What are the most significant trends transforming the software defined data center market today?
The upward trend of hyper-scale cloud adoption significantly impacts the software defined data center market. Hyper-scale deals with scalability in computing, specifically aimed towards big data and cloud computing needs. The infrastructure of hyperscale is engineered for broad scalability, resulting in outstanding performance, throughput, and redundancy, thus providing fault tolerance and high availability. Hyperscale computing frequently utilizes scalable server architectures and virtual networking, offering a cost-effective solution to meet demanding needs. For instance, in December 2023, Rackspace Technology, Inc., a U.S. cloud computing firm, introduced its Software Defined Data Center (SDDC) Enterprise and Business solutions for SAP, supported by VMware's virtualized infrastructure. These solutions deliver integrated hardware and software stack on Dell VxRail, facilitating a streamlined experience. The SDDC packages comprise various add-on services like VMware vRealize Suite, operations management, disaster recovery (DR), and VMware Hybrid Cloud Extension (HCX), along with storage choices that align with SAP's stringent mandates for the latest SAP HANA database, including S/4 HANA.
Which key market segments comprise the software defined data center market and drive its revenue growth?
The software defined data center market covered in this report is segmented -
1) By Type: Software Defined Computing (SDC), Software-Defined Storage (SDS), Software-Defined Data Center Networking (SDDCN), Automation And Orchestration
2) By Component: Hardware, Software, Services
3) By Organization Size: Small And Medium-Sized Enterprises (SMEs), Large enterprises
4) By Vertical: Banking, Financial Services And Insurance (BFSI), Information Technology (IT) And Telecom, Government And Defense, Healthcare, Education, Retail, Manufacturing, Others Verticals
Subsegments:
1) By Software Defined Computing (SDC): Virtualization Solutions, Resource Management Tools, Load Balancing Software, Application Delivery Controllers
2) By Software-Defined Storage (SDS): Storage Virtualization Solutions, Object Storage Software, Data Protection And Backup Solutions, Storage Management Platforms
3) By Software-Defined Data Center Networking (SDDCN): Network Virtualization Software, Software-Defined WAN (SD-WAN) Solutions, Network Management And Monitoring Tools, Load Balancers And Routers
4) By Automation And Orchestration: Workflow Automation Tools, Cloud Orchestration Platforms, Configuration Management Software, Infrastructure As Code (IaC) Solutions
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What regions are at the forefront of software defined data center market expansion?
North America was the largest region in the software defined data center market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the software defined data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Who are the leading players fueling growth in the software defined data center market?
Major companies operating in the software defined data center market include VMware Inc., Microsoft Corporation, Hewlett Packard Enterprise Company, Dell Technologies Inc., Oracle Corporation, Cisco Systems Inc., Citrix Systems Inc., International Business Machines Corporation, SAP SE, Hitachi Ltd., Fujitsu Ltd., NEC Corporation, Juniper Networks Inc., Western Digital Corporation, Nutanix, Red Hat Inc., Huawei Technologies Co. Ltd., Lenovo Group Limited, NetApp Inc., Pure Storage Inc., Tintri Inc., DataCore Software, Scale Computing, Pivot, StratoScale, Coho Data Inc., Maxta Inc., Hedvig Inc., Diamanti Inc., Robin Systems Inc.
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What Is Covered In The Software Defined Data Center Global Market Report?
•Market Size Forecast: Examine the software defined data center market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the software defined data center market for a structured understanding.
•Key Players Overview: Analyze major players in the software defined data center market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the software defined data center market.
•Segment Contributions: Evaluate how different segments drive overall growth in the software defined data center market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the software defined data center market.
•Industry Challenges: Identify potential risks and obstacles affecting the software defined data center market.
•Competitive Landscape: Review strategic developments in the software defined data center market, including expansions, agreements, and new product launches.
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