SDN helped companies adapt quicker to pandemic-mandated changes.

Edward Gately, Senior News Editor

October 7, 2020

2 Min Read
SDN

The global software defined networking (SDN) market is set to explode, jumping from $10 billion last year to nearly $73 billion by 2027. That’s according to Valuate Reports, which also identified some big-name channel players as SDN market leaders.

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Slowed down some by the pandemic, expect SDN market leaders to dial up the growth over the next few years.

The SDN momentum should reach a compound annual growth rate of 28% through 2027. This presents big opportunities in the channel.

Key market players are Arista Networks, Broadcom, Cisco, Citrix, Dell Technologies, Extreme Networks, HPE, IBM, Juniper Networks and NEC, Valuate said.

The researchers say with more companies migrating to web-based applications and services, the need for improved network architecture is significant. Low operating costs, comprehensive management of infrastructure and cloud integration are some of the major market drivers.

Benefits Amid the Pandemic

Businesses that introduced SDN during the COVID-19 pandemic quickly adapted to traffic changes and network specifications from work-from-home mandates. SDN helped those organizations cope with the ongoing pandemic and become economically stable, the report said.

The increasing growth in network infrastructure size and complexity has created a need for products and services that simplify and maintain the entire network efficiently. SDN provides the operator with more flexibility in traffic control to increase network performance. Look for this feature to increase the SDN market size.

Due to the outbreak of COVID-19, a significant shift toward cloud computing by many organizations will increase the adoption of SDN by cloud service providers. This, in turn, is expected drive the size of the SDN market.

Implementing SDN/NFV (network functions virtualization) helps minimize capital spending and operational costs while tackling evolving demand. It does that by reducing dependency on hardware platforms. This cost efficiency feature will also fuel market growth.

North America should hold the largest SDN market share through 2027. Adoption of advanced technology is increasing across various vertical industries. Adoption of cloud computing and convergence products and services, and demand for broad network traffic management also contribute to this dominance.

Asia Pacific should register the highest growth through 2027. This is due to a large number of cloud-ready industries there. Also, advantages such as visibility, scalability, quality of service and cost-effective security are driving SDN adoption.

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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