The software-defined data center (SDDC) market in 2022


A software-defined data center (SDDC) is a type of data storage solution that uses virtualization concepts. Through automation and pooling of resources, software-defined data centers are being deployed as resource-efficient solutions for IT services and access.

Virtualization in software-defined data centers combines the elements of infrastructure, from networking and storage to security and processor, into a unified storage entity.

See below to know more about Global Software Defined Data Center Market:

Software Defined Data Center Market

The Global Software Defined Data Center Market was estimated at $49.1 billion in 2020. Expected to maintain a compound annual growth rate (CAGR) of 23.5% over the analysis period from 2020 to 2027, it is expected to reach $215.9 billion by the end.

Regionally, the software-defined data center market is segmented as follows:

  • The US market was estimated at $14.7 billion in 2020, with a share of 29.9%
  • The Chinese market is expected to grow at a CAGR of 23%, reaching $37.5 billion by 2027
  • Japan and Canada are expected to grow at a CAGR of 21.1% and 20% over the forecast period
  • In Europe, Germany is expected to maintain one of the highest CAGRs at 16.4%
  • The Asia-Pacific segment, led by Australia, South Korea and India, is expected to reach a value of $25.3 billion by 2027

By industry, the software-defined data center market demand is driven by several sectors:

  • THIS
  • Banking, Financial Services and Insurance (BFSI)
  • Government
  • Health care
  • Manufacturing
  • Retail and e-commerce

Software-defined data center features

Software-defined data center architectures are divided into three main layers: the physical layer, the virtual layer, and the management layer.

The physical layer houses the hardware components of the data center. It includes storage devices, servers, as well as the physical aspects of the network.

The virtual layer is where the digital foundation of the data center is built. It hosts virtual machines (VMs), in addition to software-defined storage and software-defined networking.

The management layer controls the previous two layers through automation and resource orchestration.

Software-defined components of the data center include:

IT Virtualization

It is the process of abstracting and virtualizing data center resources, from its operating systems and processors to memory storage and management software. Hypervisors are used to pool resources and configure virtual machines as needed.

Network virtualization

Network virtualization allows administrators to operate virtual machines without worrying about the underlying hardware infrastructure. It works independently and combines all the necessary telecommunications, routing, DNS, firewall and administration tasks.

Storage Virtualization

With virtualization, storage resources are combined, allowing them to operate dynamically across the data center, allocating resources where they are needed.

Management, automation and orchestration software

Software-defined data centers require specialized management, automation, and orchestration software to keep all of its parts working in unison. This component reduces the need for direct intervention by IT personnel and allows remote access to the system.

Cybersecurity in SDDCs

Data security plays a major role in the design and architecture of a company’s digital infrastructure. The move towards software-defined data centers, particularly through on-premises and private cloud solutions, is partly driven by the importance of cybersecurity.

Virtualization service providers used to facilitate software-defined data centers are introducing specialized tools and services for the security and efficiency of cloud adaptation. This has made the move to software-defined data centers preferable for more companies.

“In an SDDC, the core components of the data center (network, compute, storage, and security) are consolidated, virtualized, and delivered as a service,” says Craig McDonaldVice President of Product Strategy for Systems, SolarWinds.

Advantages of software-defined data center

Software-defined data center solutions, whether built in-house via a private cloud or purchased as a digital service from a third-party vendor, provide many benefits to users, such as:

  • Improve business agility
  • Increased storage scalability
  • Increase profitability
  • Simplify storage center management
  • Reduce reliance on manual IT labor

“Believe it or not, the future of the lights-out data center looks bright. Virtualization and a software-defined data center are already implemented by many data centers. … This allows the system to take full advantage of the power of the server. And finally, storage virtualization consolidates multiple physical storages into a single device, making it easier to manage,” says Michael Isberto, blog director, Colocation America.

“Software-defined data centers make it easy to automate data center systems. Automated “out of service” data centers are closer than ever. »

Software Defined Data Center Use Cases

Here are some examples highlighting the use of SDDC technology with the help of various vendors:

Japanese Airlines

Japan Airlines is a domestic and international passenger and cargo carrier. Based in Tokyo, it operates through five consolidated subsidiaries and affiliates.

Japan Airlines, together with its information and communications technology (ICT) partner, JAL INFOTEC, was on a mission to become the world’s most popular travel carrier. In order to achieve this status, they needed to upgrade their outdated IT infrastructure.

They worked with IBM to integrate cloud systems using the same virtualization architectures. Companies also asked IBM to implement a software-defined data center on IBM Cloud that is interconnected with their on-premises solution.

“Adopting the concept of a hybrid cloud infrastructure that evolves every six months is the main achievement to realize the digital transformation of the entire JAL Group”, says Masahiko Obatahybrid cloud infrastructure project manager, JAL INFOTEC.

“Engineers have greatly reduced the time they spend on typical user meetings and operations and focused on their core work, such as design and development.”

By working with IBM, the two companies have been able to establish a hybrid cloud environment that scales with their businesses and allows switching between their storage and their cloud and on-premises systems.

Raiffeisen IT

Raiffeisen Informatik is an IT services and management company that works primarily with the finance and insurance industries and is based in Vienna, Austria.

Seeking to increase the agility of its data management through automation, Raiffeisen Informatik knew its best answer was a large-scale software-defined data center solution.

Working with Juniper Networks, Raiffeisen used Juniper Apstra to change its network design and rely more on automation. This allowed Raiffeisen to address its shortage of IT talent.

“The main driver of network automation was people. There are fewer and fewer experienced network engineers, and the obvious way to alleviate the shortage is to deploy automation wherever possible,” said Ernest AltbartIT architect, Raiffeisen Informatik.

“With Juniper Apstra, we can automate every aspect of designing, deploying and operating our data center fabric, enabling even smaller IT teams to be more responsive to customer needs.”

With Juniper, Raiffeisen has been able to continuously upgrade and optimize its data center infrastructure and use automation in many of its core processes.

The Molecular Biotechnology Institute

The Institute of Molecular Biotechnology (IMBA) is one of the leading research institutions in Europe with a massive research volume. Based in Vienna, Austria, it is made up of 14 research groups and more than 200 employees who regularly need reliable access to its IT infrastructure.

Seeking to adapt to the growing volume and complexity of research, the IMBA needed a more efficient approach to scaling its infrastructure.

Working with Red Hat, IMBA was able to create a flexible and scalable software-defined data center solution without requiring additional staff. They used it to streamline and simplify their IT operations and optimize their digital footprint.

“Adopting Red Hat OpenStack Platform would also give us a full support chain, with Red Hat and other data center service providers providing validated designs for integrations between their technologies,” said Petar ForaiDeputy Director of Informatics, Institute of Molecular Biotechnology.

“Before, we struggled to provide environments for big data analysis. With OpenStack, this is no longer a problem.

By moving to a software-defined data center, IMBA was able to install custom high-performance computing (HPC) environments, improve computing performance, and simplify database management.

Software Defined Data Center Providers

Some of the major software defined data center solution vendors in the global market include:

  • Cisco
  • Citrix
  • Dell TechnologiesEMC
  • Hitachi
  • Microsoft
  • Fujitsu
  • Oracle
  • NEC Corporation
  • Juniper Networks
  • NetApp

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