US Software Defined Data Center Market Trends and Analysis by 2027

The US software defined data center 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.

Impact of COVID-19 Pandemic 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.

Software Defined Data Center Market Insights

Growing implementation of software defined data center specifically in BFSI sector driving software defined data center market

The BFSI sector in the US is growing vigorously and is focusing on the implementation of advanced data center such as SDDC, owing to the rising customer requirement of secure and fast transaction service. The application of SDDC enables the secured transaction with high frequency trading by using reduced network latency. The country has the largest financial markets in the world. In 2018, BFSI accounted for about 7.4% i.e. ~US$1.5 trillion of the country’s GDP. It is the highest growth sector which boost the substantial economic activity and creates job opportunity in the US. Thus, demands the integration of SDDC for offeringenhanced security, efficient data recovery, and mobility solutions across BFSI organizations.It also allows the companies to fulfil all the stringent government regulations for the mounting data center adaptability and flexibility. SDDC make use of virtual as well as traditional firewalls for avoiding the potential security blind spots. The mounting number of BFSI firms and developing fintech companies in the country is one of the most significant factors driving the growth of SDDC market. Further, the emerging requirement of security solutions to safeguard business information and sensitive data of customers is anticipated to propel the software defined data center market.

Component-Based Market Insights

Based on component, the software defined data center market is bifurcated into solution and service. The software defined data center is the virtualization of all the essential resources and services at the data center. The virtualization concept extends to the infrastructure implementation, which is required at a traditional data center, thus achieving IT-as-a-Service (ITaaS). With such a concept, the networking, storage, security, and computing can be delivered as a service to the consumer and charged on a pay-as-you-grow basis. With the need to optimize the data center costs on resources and maximize data centers’ productivity, virtualization technology has enabled companies to fulfil their data center demands.   

Industry Vertical-Based Market Insights

Based on industry vertical, the software defined data center market is bifurcated into BFSI, retail, healthcare, telecommunication & IT, and others. The IT & telecom segment dominated the software defined data center market in 2019.   IT & telecom company’s operation efficiency is largely depends on the fineness of the datacentres. Therefore, the IT & telecom companies invest significantly in up gradation of their datacentres. The software-defined datacentres enables IT organizations to keep up with the technological advancements bring products to the market quickly while lowering the costs and improving the efficiency. The growing focus of IT & telecom companies towards adoption of software-defined datacentre solutions is expected to support the increasing sales of software-defined datacentre across IT & telecom sector

Software Defined Data Center Market, by Industry Vertical – 2019 and 2027

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US Software Defined Data Center Market: Strategic Insights

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The software defined data center market is highly competitive, attributed to the presence of certain key players. Players operating in the software defined data center market are concentrating on expanding their product portfolio. A few developments by key players are listed below:

In 2020, Datera, Inc. entered into a partnership agreement with Fujitsu for advancing enterprises' transition to achieving agility and efficiency in the software-defined data center. The agreement allows Fujitsu to integrate the Datera Data Services Platform into its product portfolio, which is an autonomoUS software-defined storage (SDS) platform.

In 2019, VMware, Inc. announced a wide range of networking and security innovations and major milestones that further advance VMware’s vision of the Virtual Cloud Network. The new capabilities include VMware NSX Advanced Load Balancer; new and enhanced network and security analytics capabilities, delivered through VMware vRealize Network Insight 5.0 and NSX Intelligence.

Software Defined Data Center Market – by Component

• Solution
• Service

Software Defined Data Center Market – by Industry Vertical

• BFSI
• Retail
• IT & Telecom
• Healthcare
• Others

Company Profiles

• VMware, Inc
• Microsoft Corporation
• Juniper Networks Inc.
• Oracle Corporation
• Cisco Systems, Inc
• FUJITSU LIMITED
• Citrix Systems, Inc
• Hewlett Packard Enterprise Development LP (HPE)
• UnitedPrivateCloud
• Nutanix, Inc.

US Software Defined Data Center Market Regional Insights

The regional trends and factors influencing the US Software Defined Data Center Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses US Software Defined Data Center Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

US Software Defined Data Center Market Report Scope

US Software Defined Data Center Market Players Density: Understanding Its Impact on Business Dynamics

The US Software Defined Data Center Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.