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

Related Articles

New Partnership Helps Service Providers with SDN

By: Frank Griffin    3/30/2017

A new partnership between Packet Design and NEC/Netcracker is going to give service providers new tools to implement software-defined networking (SDN)…

Read More

Brain4Net's New SDN Services Mean More Value

By: Steve Anderson    3/23/2017

Brain4Net brings out a line of carrier Ethernet services built around SDN, which join with virtual network services to create greater value.

Read More

TMC Announces 2016 SDN Product of the Year Award Winners

By: TMC    1/18/2017

TMC, a global, integrated media company helping clients build communities in person, in print and online, announced today the winners of the 2016 SDN …

Read More

Juniper to Buy AppFormix

By: Paula Bernier    12/5/2016

Juniper Networks recently announced plans to buy cloud optimization platform provider AppFormix. The deal is expected to close this quarter.

Read More

Vidder Expands on PrecisionAccess with Automation, Channel Efforts, Etc.

By: Paula Bernier    11/28/2016

Security company Vidder, which sells the PrecisionAccess software-defined perimeter service, continues to build on its momentum with new customers, ne…

Read More