SDN FEATURE NEWS

SDN Ethernet Market to Pass $1.4 Billion This Year

By Laura Stotler November 19, 2015

Software-defined networking (SDN) has jumped into the mainstream this year, with data centers, service providers and enterprises alike adopting technologies and equipment to streamline their networking architectures. The impact of this trend is beginning to be measured, and a new report from IHS Infonetics shows the market for “in-use” SDN Ethernet switches and controllers will surpass $1.4 billion this year.

That number is nearly double last year’s usage statistics, and signifies just how important SDN has become in the technology sector. The new report, “IHS Infonetics Data Center and Enterprise SDN Hardware and Software” examines data center and enterprise SDN deployments over the past year.

“The SD-WAN market is still small, but many startups and traditional WAN optimization appliance vendors and network vendors have jumped in,” said Cliff Grossner, research director for data center, cloud and SDN at IHS. “The data center and enterprise LAN SDN market will be solidified by the end of 2016 as lab trials give way to live production deployments. And in 2017, SDN will move from early adopters into the hands of mainstream buyers.

The forecast echoes other market research indicating the overall SDN market has been growing. ReportnReports puts the current size at $2 billion and forecasts the overall SDN and network functions virtualization (NFV) markets will reach $45 billion by 2020.

According to IHS, bare metal switches made up 45 percent of global revenues for in-use, SDN-capable Ethernet switches this year. Dell monopolizes the market for branded bare metal switches with 100 percent of revenues while HP has the largest share of SDN-capable branded Ethernet switch ports. IHS also forecasts SDN in-use Ethernet switches will make up 15 percent of switch market revenues in 2017, a four-percent increase from today’s revenues.




Edited by Stefania Viscusi

NFVZone Contributing Editor

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