The data center and enterprise market for software-defined networking (SDN) is set to be worth as much as $3.1 billion by 2017, according to a new study from Infonetics Research.
“It’s still early days, but our research over the last two years confirms that SDN controllers and Ethernet switches in use for SDN will play a role in enterprise and data center networks, growing to a $3.1 billion market by 2017,” said Cliff Grossner, directing analyst for data center and cloud at Infonetics Research.
“Wide-scale in-use SDN depployents will occur first in the data center with large enterprise providers, followed closely by the enterprise LAN,” continued Grossner. “We’re already seeing significant use cases for SDN in the enterprise LAN providing security and unification of wired and wireless networks, and enabling BYOD [bring your own device].”
According to Infonetics Research, SDN is currently undergoing a classic market adoption cycle, with new entrants looking to gain a toe-hold and the majority of enterprises “still kicking the tires”.
The research also indicates that a number of major vendors have been crowding into this market in 2013, including Alcatel-Lucent (Paris, France), Cisco (San Jose, CA, USA), Dell (Round Rock, TX, USA), Hewlett-Packard (Palo Alto, CA, USA), Huawei (Shenzhen, China) and IBM (Armonk, NY, USA).
The few early deployments of SDN – carried out by Google (Mountain View, CA, USA), NTT (Tokyo, Japan), AT&T (Dallas, TX, USA), Deutsche Telekom (Bonn, Germany), BT (London, UK) and China Mobile (Beijing, China) – have been carried out in large data centers of cloud service providers and large enterprises, notes Infonetics Research.
The company reckons 10% of Ethernet switches will be in use for SDN by 2017.
It also points out that North America – where SDN “got its start” – will claim nearly 50% of revenues from SDN generated between now and 2017.