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Hexa Research releases major SDDC study

August 23, 2017  

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A new study from Hexa Research states that the global software defined data centre (SDDC) market is expected to reach US$259 billion by 2024, driven by its ability to optimize operations through data center management and virtualization capabilities.

SDDC delivers a common virtualization infrastructure for computing, storage, and networking in a software tool. Additional benefits provided inlude data security, control over application accessibility, reduction in energy consumption and an increase in efficiency.

In 2016, North America dominated the market accounting for 47.6% of the share in 2016, as a relatively large number of businesses in various verticals had deployed SDDC. The migration towards SDDC is prevalent in medium to large scale businesses as they strive to reduce their operational expenditure.

“Over the forecast period, Asia Pacific region is expected to consolidate its position in the SDDC market growing at a CAGR of 36.7%, driven on the basis of prevailing adoption by businesses in the region,” the research firm said. “Much of growth in the Asia Pacific region is expected to rise from countries such as India and China, where the focus is on optimizing processes.

Over the past few years, the market has also witnessed growing adoption of SDDC by small and medium scale businesses, besides large businesses which have been the key early adopters of SDDC. In terms of deployment among the various industries, banking financial services and insurance and the government segment commanded the major share in 2016. The demand from the segment is projected to increase over the forecast period as it enables companies to reduce their existing data center specific capital expenditure and provide enhanced service quality and efficiency.

“However, the difficulty in integration of SDDC with the existing IT infrastructure can hinder the growth of SDDC marke,” Hexa said in a release.  “Another potential challenge in its growth can be the migration of operations, as organizations may not feel the need to switch to SDDC, and may continue with their existing infrastructure. Besides, there is an upfront cost associated with the implementation of SDDC, which may limit its adoption mainly among medium to small scale businesses.”

Key players in the global market include IBM, Microsoft, Hitachi, and Cisco.