According to our latest market study on “US Software Defined Data Center Market Forecast to 2027 – COVID-19 Impact and Analysis – by Component (Solution and Service) and Industry Vertical (BFSI, Telecom & IT, Healthcare, Retail, and Others), the market was valued at US$ 14.30 billion in 2019 and is projected to reach US$ 50.93 billion by 2027; it is expected to grow at a CAGR of 17.4% from 2020 to 2027.
US is a technologically advanced country with the presence of a large number of IT and telecommunication companies. Moreover, the country houses some of the dominant IT companies that have set up their datacentre in the US. Northern Virginia, Santa Clara, Northern New Jersey, Chicago, and Dallas are some of the US's largest datacentre metro areas. US companies are continuously focusing on adapting to new technologies and are continually investing in new technologies to improve their business process and improve productivity. The companies’ focus on adopting software-defined data centers over legacy hardware data centers to improve the costs, scalability, efficiency, and availability. Therefore, the presence of a large number of IT and Telecom giants and the growing focus of the companies towards improving their efficiency and reducing the operational costs are the significant factors that are expected to support the growth of the software defined data center market in the US.
Moreover, with the growing amount of data Federal Governments are capitalizing on modernizing their IT environments to meet their demands. The government agencies are focusing on improving the storage and management of data in response to government mandates. According to the survey released by Dell EMC in March 2017, 100 federal IT managers participated. The survey revealed: about two-thirds of participants responded that their organizations already deployed software defined solutions. However, 85% of the participants responded to progress in the use of software-defined data centers. Thus, government organizations' growing investments for technological advancements and the increasing adoption of software-defined solutions among government organizations are expected to positively influence the software defined data center market in the US.
US has the presence of some of the leading players in the software defined data center market such as VMware, Inc., Hewlett Packard Enterprise Development LP, UnitedPrivateCloud, Cisco Systems, Inc., and Microsoft Corporation, among others. These companies are rigorously working on offering cutting edge software defined data center solutions to its customers. The presence of the leading software-defined data center providers and the companies' continuous focus towards the adoption of new technologies to improve their efficiency is expected to support the growth of the software defined data center market in the US.
Impact of COVID-19 on Software Defined Data Center Market
The COVID-19 pandemic situation in the US has forced companies to implement work from home (WFH) process as a contingency for the continuity of the business; this drives the adoption of cloud infrastructure and integration of SDDC. As per CBRE's North American Data Center Trends Report 2020, the region’s data center sector was strong in the first half of 2020 because hybrid IT infrastructure is being widely implemented by the organizations to develop remote working capabilities. Furthermore, VMware (a data center virtualization provider) has taken conscious decision of encouraging work from home for the foreseeable future to contain the spread of COVID-19 in workplace settings. Thus, the implementation of SDDC is persistently becoming essential owing to increasing data volumes and growing multi-cloud strategies, thereby driving the software defined data center market growth in the country.
The report segments the US software defined data center market as follows:
Software defined data center Market – by Component- Solution
- Service
- BFSI
- IT & Telecom
- Retail
- Healthcare
- Others