Demand Grows for Software Defined Networking

software-defined-networking-sdnThe Software Defined Networking (SDN) Market will grow more than six-fold over the next five years, according to the new Data Center Disruptors Advanced Research Report from Dell’Oro Group, provider of objective research and analysis for the networking and telecommunications industry. 

The majority of the SDN market will comprise Ethernet Switches and Network Security Appliances, which are forecasted to deliver seventy-five percent of total sales revenue in 2013.

“Almost every major Ethernet Switch vendor with exposure in the data center is announcing significant new products over the next several weeks,” said Alan Weckel, Vice President at Dell’Oro Group.  “To put perspective on the order of magnitude of the data center equipment market, in 2013 sales will exceed $100 billion, split among Servers, Storage, Ethernet Switches, and Data Center Appliances, et cetera.”

Weckel adds, “We predict a wide variety of manufacturers will engage in the battle for supremacy of data center spending and control. For Ethernet Switching, data center share will become an increasingly important metric for three reasons: almost all revenue growth in the market over the next five years will come from data center products; vendors will have to fight each other for ever-fewer, although larger, deals; and SDN is changing who owns application and network control points. 

The Dell’Oro Group Data Center Disruptors Advanced Research Report examines the disruptive elements to the Ethernet Switch market in the data center, including SDN, Cloud, Virtualization, and the impact of White Box Switching. The Report addresses issues such as: the importance of SDN to the data center; the portion of the market attributed to White Box and the effect of cloud computing on Ethernet Switch, Application Delivery Controller and Network Security Appliance Markets. The report also reveals first half 2013 vendor placement in the data center Ethernet Switch market and how Brocade, Cisco, Dell, Hewlett-Packard, Extreme, Huawei, IBM, and Juniper place in this increasingly important segment.

Founded in 1995 with headquarters in Redwood City, CA, in the heart of Silicon Valley, Dell’Oro Group has long-standing relationships with major telecommunications and networking companies and leverages those relationships to deliver its market research.

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