Data center SDN market forecast to grow 6x by 2017

Ethernet switch spending in the enterprise data center to plateau as cloud takes over, projects Dell'Oro Group.

According to the newly released research from networking and telecommunications industry analyst Dell’Oro Group, the Software Defined Networking (SDN) market will grow more than six-fold over the next five years. According to the analyst, the majority of this market will comprise Ethernet switches and network security appliances, which are forecast 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," comments 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, etc. We predict a wide variety of manufacturers will engage in battle for the supremacy of data center spending and control."

See: Study finds outmoded data center infrastructure hampering virtualization, cloud adoption

Dell’Oro Group's newly released Data Center Disruptors Advanced Research Report examines the disruptive elements to the Ethernet Switch market in the data center, including SDN, cloud and virtualization technologies, 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 the cloud on the Ethernet switch, application delivery controller and network security appliance markets.

Weckel adds, “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 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. To purchase the new report, contact Julie Learmond-Criqui at +1.650.622.9400 x244 or email Julie@DellOro.com. Learn more.


More in Data Center