Software Defined Data Center Market
PUBLISHED: 2025 ID: SMRC28361
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Software Defined Data Center Market

Software-Defined Data Center Market Forecasts to 2030 - Global Analysis By Component (Solutions and Services), Deployment Model, Enterprise Size, End User and By Geography

4.8 (91 reviews)
4.8 (91 reviews)
Published: 2025 ID: SMRC28361

This report covers the impact of COVID-19 on this global market
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Years Covered

2022-2030

Estimated Year Value (2024)

US $82.7 BN

Projected Year Value (2030)

US $259.6 BN

CAGR (2024-2030)

21%

Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

North America

Highest Growing Market

Asia Pacific


According to Stratistics MRC, the Global Software-Defined Data Center Market is accounted for $82.7 billion in 2024 and is expected to reach $259.6 billion by 2030 growing at a CAGR of 21% during the forecast period. A software defined data center (SDDC) is an IT infrastructure in which all data center resources, including storage, compute, networking, and security, are virtualized and delivered as a service through software. Management and control are automated through centralized software for maximum flexibility, scalability, and efficiency. SDDC takes hardware out of business, enabling dynamic distribution systems to handle changing workloads, thereby optimizing performance, reducing costs, and simplifying data center management.

According to the Cloud Native Computing Foundation (CNCF) 2023 survey, public cloud was the preferred choice for organizations, with 56% of organizations adopting multi-cloud solutions.


Market Dynamics:

Driver: 

Increased adoption of cloud computing

The growing adoption of cloud computing is a key driver for the software-defined data center (SDDC) market. As businesses increasingly shift to cloud-based infrastructures, the demand for scalable, flexible, and cost-effective data center solutions rises. SDDCs enable seamless integration with cloud environments, offering dynamic resource allocation and centralized management. This trend is further fueled by the proliferation of hybrid and multi-cloud strategies, which require agile and automated IT infrastructures to meet evolving business needs efficiently.

Restraint:

High initial investment

The high initial investment required for deploying SDDCs acts as a major restraint for market growth. Costs associated with advanced software solutions, skilled personnel, and infrastructure upgrades can be prohibitive for small enterprises. Additionally, transitioning from traditional data centers to software-defined architectures involves significant capital expenditure and operational disruptions. Despite long-term benefits such as cost savings and efficiency, these upfront costs deter many organizations from adopting SDDC solutions at scale.

Opportunity:

Expansion of edge computing

The expansion of edge computing presents a significant growth opportunity for the SDDC market. As industries adopt edge computing to process data closer to its source, the need for flexible and scalable data center solutions increases. SDDCs complement edge computing by enabling real-time data processing and efficient resource management across distributed environments. This synergy supports applications like IoT, autonomous vehicles, and smart cities, driving further adoption of software-defined architectures.

Threat:

Cybersecurity risks

Cybersecurity risks pose a significant threat to the SDDC market. The virtualized nature of SDDCs increases vulnerability to cyberattacks, such as data breaches and ransomware. Ensuring robust security measures while maintaining operational efficiency remains a challenge for organizations. Additionally, compliance with stringent data protection regulations like GDPR or CCPA adds complexity to managing SDDC environments. Failure to address these risks can lead to financial losses and reputational damage.

Covid-19 Impact: 

The COVID-19 pandemic accelerated the adoption of SDDCs as organizations shifted to remote work models and digital operations. The demand for scalable and resilient IT infrastructures surged, driving reliance on virtualized environments. SDDCs enabled businesses to ensure seamless data access and management during disruptions. This trend highlighted the importance of flexible IT solutions in maintaining business continuity, fostering long-term growth in the market.

The solutions segment is expected to be the largest during the forecast period

The solutions segment is expected to account for the largest market share during the forecast period due to its comprehensive offerings in software-defined networking (SDN), storage (SDS), and compute (SDC). These solutions enable organizations to virtualize their IT infrastructure, improving scalability, flexibility, and operational efficiency. Enterprises increasingly rely on these solutions to optimize performance while reducing hardware dependency. The rising demand for centralized management tools that streamline resource allocation further drives adoption in this segment. 

The small and medium-sized enterprises (SMEs) segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the small and medium-sized enterprises (SMEs) segment is expected to witness the highest CAGR due to rising digital transformation initiatives among smaller organizations. SMEs benefit from SDDCs' cost-effective infrastructure management capabilities, which reduce hardware expenses while enhancing scalability. Additionally, government support for start-ups and increased adoption of cloud-based services among SMEs contribute to this segment's rapid growth.

Region with largest share:

The North America region is anticipated to account for the largest market share during the forecast period due to its advanced technological infrastructure and early adoption of cloud computing. The presence of major tech companies and significant investments in IT innovation drive market growth in this region. Additionally, industries such as BFSI, healthcare, and retail increasingly rely on SDDCs for enhanced agility and scalability in their operations.

Region with highest CAGR:

The Asia Pacific region is anticipated to register the highest growth rate over the forecast period owing to rapid digitalization in emerging economies like China and India. The growing adoption of IoT devices and edge computing further boosts demand for SDDC solutions. Favorable government policies supporting data center development, coupled with increasing investments in cloud technologies, fuel market expansion in this region. 

Key players in the market

Some of the key players in Software-Defined Data Center Market include VMware, Inc., Microsoft Corporation, Cisco Systems, Inc., Hewlett Packard Enterprise (HPE), IBM Corporation, Oracle Corporation, Dell Technologies, Inc., Nutanix, Inc., Huawei Technologies Co., Ltd., SAP SE, Citrix Systems, Inc., NEC Corporation, Juniper Networks, Inc., Arista Networks, Inc., Fujitsu Limited, Extreme Networks, Inc., DataCore Software Corporation and Pivot3, Inc.

Key Developments:

In May 2024, Hewlett Packard Enterprise announced new solutions across the HPE GreenLake cloud to simplify how enterprises manage and optimize their storage, data and workloads across on-premise and public cloud environments.

In August 2023, VMware announced new capabilities and solutions, including the VMware Edge Cloud Orchestrator, to help customers accelerate their digital transformation at the edge during VMware Explore 2023.

In July 2023, Microsoft is reportedly ramping up its investment in data centers, doubling its new data center capacity this year, with over 500MW of additional space obtained since July 2023, totaling more than 5GW of IT capacity.

Components Covered:
• Solutions
• Services

Deployment Models Covered:
• On-Premises
• Cloud-Based

Enterprise Sizes Covered:
• Small and Medium-Sized Enterprises (SMEs)
• Large Enterprises

End Users Covered:
• IT and Telecom
• Banking, Financial Services, and Insurance (BFSI)
• Government and Public Sector
• Healthcare
• Retail and E-Commerce
• Manufacturing
• Energy and Utilities
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary       
        
2 Preface  
    
 2.1 Abstract      
 2.2 Stake Holders      
 2.3 Research Scope      
 2.4 Research Methodology      
  2.4.1 Data Mining     
  2.4.2 Data Analysis     
  2.4.3 Data Validation     
  2.4.4 Research Approach     
 2.5 Research Sources      
  2.5.1 Primary Research Sources     
  2.5.2 Secondary Research Sources     
  2.5.3 Assumptions     
        
3 Market Trend Analysis       
 3.1 Introduction      
 3.2 Drivers      
 3.3 Restraints      
 3.4 Opportunities      
 3.5 Threats      
 3.6 End User Analysis      
 3.7 Emerging Markets      
 3.8 Impact of Covid-19      
        
4 Porters Five Force Analysis       
 4.1 Bargaining power of suppliers      
 4.2 Bargaining power of buyers      
 4.3 Threat of substitutes      
 4.4 Threat of new entrants      
 4.5 Competitive rivalry      
        
5 Global Software-Defined Data Center Market, By Component       
 5.1 Introduction      
 5.2 Solutions      
  5.2.1 Software-Defined Compute (SDC)     
   5.2.1.1 Hypervisors    
   5.2.1.2 Management Tools    
  5.2.2 Software-Defined Storage (SDS)     
   5.2.2.1 Storage Virtualization    
   5.2.2.2 Storage Management    
   5.2.2.3 Hyperconverged Infrastructure    
  5.2.3 Software-Defined Networking (SDN)     
   5.2.3.1 SDN Controllers    
   5.2.3.2 Network Infrastructure    
   5.2.3.3 Network Virtualization    
  5.2.4 Software-Defined Security     
   5.2.4.1 Network Security    
   5.2.4.2 Data Security    
   5.2.4.3 Access Control    
 5.3 Services      
  5.3.1 Consulting Services     
  5.3.2 Integration and Deployment     
  5.3.3 Managed Services      
        
6 Global Software-Defined Data Center Market, By Deployment Model       
 6.1 Introduction      
 6.2 On-Premises      
 6.3 Cloud-Based      
        
7 Global Software-Defined Data Center Market, By Enterprise Size       
 7.1 Introduction      
 7.2 Small and Medium-Sized Enterprises (SMEs)      
 7.3 Large Enterprises      
        
8 Global Software-Defined Data Center Market, By End User       
 8.1 Introduction      
 8.2 IT and Telecom      
 8.3 Banking, Financial Services, and Insurance (BFSI)      
 8.4 Government and Public Sector      
 8.5 Healthcare      
 8.6 Retail and E-Commerce      
 8.7 Manufacturing      
 8.8 Energy and Utilities      
 8.9 Other End Users      
        
9 Global Software-Defined Data Center Market, By Geography       
 9.1 Introduction      
 9.2 North America      
  9.2.1 US     
  9.2.2 Canada     
  9.2.3 Mexico     
 9.3 Europe      
  9.3.1 Germany     
  9.3.2 UK     
  9.3.3 Italy     
  9.3.4 France     
  9.3.5 Spain     
  9.3.6 Rest of Europe     
 9.4 Asia Pacific      
  9.4.1 Japan     
  9.4.2 China     
  9.4.3 India     
  9.4.4 Australia     
  9.4.5 New Zealand     
  9.4.6 South Korea     
  9.4.7 Rest of Asia Pacific     
 9.5 South America      
  9.5.1 Argentina     
  9.5.2 Brazil     
  9.5.3 Chile     
  9.5.4 Rest of South America     
 9.6 Middle East & Africa      
  9.6.1 Saudi Arabia     
  9.6.2 UAE     
  9.6.3 Qatar     
  9.6.4 South Africa     
  9.6.5 Rest of Middle East & Africa     
        
10 Key Developments       
 10.1 Agreements, Partnerships, Collaborations and Joint Ventures      
 10.2 Acquisitions & Mergers      
 10.3 New Product Launch      
 10.4 Expansions      
 10.5 Other Key Strategies      
        
11 Company Profiling       
 11.1 VMware, Inc.      
 11.2 Microsoft Corporation      
 11.3 Cisco Systems, Inc.      
 11.4 Hewlett Packard Enterprise (HPE)      
 11.5 IBM Corporation      
 11.6 Oracle Corporation      
 11.7 Dell Technologies, Inc.      
 11.8 Nutanix, Inc.      
 11.9 Huawei Technologies Co., Ltd.      
 11.10 SAP SE      
 11.11 Citrix Systems, Inc.      
 11.12 NEC Corporation      
 11.13 Juniper Networks, Inc.      
 11.14 Arista Networks, Inc.      
 11.15 Fujitsu Limited      
 11.16 Extreme Networks, Inc.      
 11.17 DataCore Software Corporation      
 11.18 Pivot3, Inc.      
        
List of Tables        
1 Global Software-Defined Data Center Market Outlook, By Region (2022-2030) ($MN)       
2 Global Software-Defined Data Center Market Outlook, By Component (2022-2030) ($MN)       
3 Global Software-Defined Data Center Market Outlook, By Solutions (2022-2030) ($MN)       
4 Global Software-Defined Data Center Market Outlook, By Software-Defined Compute (SDC) (2022-2030) ($MN)       
5 Global Software-Defined Data Center Market Outlook, By Software-Defined Storage (SDS) (2022-2030) ($MN)       
6 Global Software-Defined Data Center Market Outlook, By Software-Defined Networking (SDN) (2022-2030) ($MN)       
7 Global Software-Defined Data Center Market Outlook, By Software-Defined Security (2022-2030) ($MN)       
8 Global Software-Defined Data Center Market Outlook, By Services (2022-2030) ($MN)       
9 Global Software-Defined Data Center Market Outlook, By Consulting Services (2022-2030) ($MN)       
10 Global Software-Defined Data Center Market Outlook, By Integration and Deployment (2022-2030) ($MN)       
11 Global Software-Defined Data Center Market Outlook, By Managed Services  (2022-2030) ($MN)       
12 Global Software-Defined Data Center Market Outlook, By Deployment Model (2022-2030) ($MN)       
13 Global Software-Defined Data Center Market Outlook, By On-Premises (2022-2030) ($MN)       
14 Global Software-Defined Data Center Market Outlook, By Cloud-Based (2022-2030) ($MN)       
15 Global Software-Defined Data Center Market Outlook, By Enterprise Size (2022-2030) ($MN)       
16 Global Software-Defined Data Center Market Outlook, By Small and Medium-Sized Enterprises (SMEs) (2022-2030) ($MN)       
17 Global Software-Defined Data Center Market Outlook, By Large Enterprises (2022-2030) ($MN)       
18 Global Software-Defined Data Center Market Outlook, By End User (2022-2030) ($MN)       
19 Global Software-Defined Data Center Market Outlook, By IT and Telecom (2022-2030) ($MN)       
20 Global Software-Defined Data Center Market Outlook, By Banking, Financial Services, and Insurance (BFSI) (2022-2030) ($MN)       
21 Global Software-Defined Data Center Market Outlook, By Government and Public Sector (2022-2030) ($MN)       
22 Global Software-Defined Data Center Market Outlook, By Healthcare (2022-2030) ($MN)       
23 Global Software-Defined Data Center Market Outlook, By Retail and E-Commerce (2022-2030) ($MN)       
24 Global Software-Defined Data Center Market Outlook, By Manufacturing (2022-2030) ($MN)       
25 Global Software-Defined Data Center Market Outlook, By Energy and Utilities (2022-2030) ($MN)       
26 Global Software-Defined Data Center Market Outlook, By Other End Users (2022-2030) ($MN)       
        
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.        

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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