- Cost reduction in hardware is the major driving factor for the adoption of software-defined data centres. With SDDC, businesses no longer need to purchase hardware, acquire vendor-specific skills to maintain and operate it, or manage upgrades to physical machines. It simplifies the management of resources of the company, thus increasing overall efficiency.

- Ever-growing security threats which aim at stealing critical information can hamper the growth of the market. SDDC must have identity and access management to control users, OS security to safeguard the virtual server, and data security to protect information at rest and in motion. Two-factor authentication must be put wherever possible to make SDDC secure.

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Key Market Trends

Software-Defined Storage to Dominate the Market

- Software-Defined Storage has become mandatory, as the enterprise resources are becoming decentralized and increasing in volume. It is also called Storage Virtualization or virtual SAN.

- Storage virtualization will allow many storage units to be combined in one and removed any physical storage in sight. It is useful for those organizations which spend excess in hardware or those who are unable to meet SLA due to lack of storage facilities.

- As per DOMO's Data Never Sleeps 6.0 Report, Amazon shipped 1111 packages per minute, the weather channel received 18055555 forecast requests per minute and google conducted 3877140 requests per minute in 2018. To store the increasing amount of data, hardware devices are not enough.

- Storage virtualization products such as IBM's SAN Volume Controller (SVC) and Hitachi Data Systems Corp.'s USP V claim to virtualize different types and brands of storage systems, making them potentially useful to companies that have undergone a merger or acquisition.

Asia-Pacific to Witness the Highest Growth

- Asia-Pacific is the fastest growing region for this market due to more number of startups mushrooming due to steady economic growth, rapid spread of the Internet and smartphones and increases in related business demand.

- This trend is attracting venture capitalist in this region which is leading to growth in number of companies. Thus, the amount of data generated is also increasing.

- Number of financial centers are also increasing in APAC, with Shanghai in 5th position of Global Financial Centers Index 2019. Financial Data is critical, thus it needs to be stored in a virtual server for security purpose.

- There has been a strong trend of Asia-Pacific financial centers improving over several years. The top eight centers in the region are now in the top fifteen centers in the whole index. This indicates that with an increase in innovation, the countries would also have to take care of data storing capabilities.

Competitive Landscape

The market for SDDC is highly dominated by players like Oracle, VMware and Microsoft which provide virtualization software used by all big and small enterprises. The new entrants are generally acquired by big companies, which increase the later's product portfolio.

- June 2019 - Intel signed an agreement to acquire Barefoot Networks, an Ethernet switch silicon and software firm for use in the data centre. Addition of Barefoot Networks will support the company’s focus on end-to-end cloud networking and infrastructure leadership, and will allow Intel to continue to deliver experiences and capabilities for its data centre customers.

- June 2019 - Equinix announced an expanded collaboration with IBM Cloud to bring private and scalable connectivity to global enterprises at the digital edge via Equinix Cloud Exchange Fabric.

- April 2019 - VMware introduced VMware Cloud on Dell EMC, which will provide simple, more secure and scalable infrastructure delivered as-a-service to customers’ on-premises data center and edge locations.

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