Software defined networking technology market will robust growth due to increasing adoption of advanced software facilities by IT companies to drive the industry trends

The telecommunication sector is probably embarking on a transformational shift in recent years. software defined networking technology market is deemed to be a major stipendiary of this transition. Telecommunication networks, apparently, have migrated from traditional hardware and appliance centric deployment to cloud based model, with software playing a pivotal role in network functionality. The increasing popularity of SDN industry can be majorly attributed to this fundamental aspect.

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Software defined networking emerged as an advanced architecture paradigm, amalgamating different technological capabilities applied to management of network functions, design, and service platforms. Pertaining to these benefits, numerous IT service companies have been feverishly changing their perspective toward adoption of software-based solutions for resolving several business challenges, which in a way is impelling software defined networking technology market share. As claimed by Cisco in its latest Cloud Index report- over 67% of all data centers would adopt SDN technology partially or fully by the end of 2021, a sharp rise from what it recorded in the year 2016 which was only 16%.

Say for instance, Orange Business Services has recently teamed up with one of the leading behemoths in the SDN industry – Cisco, to develop intent based networking with the help of artificial intelligence. Through this partnership, the firm is also looking forward to encouraging customers to incline toward digitalization and cloud with the adoption of new age software facilities. Numerous other companies are apparently implementing visualization technologies like SDN to speed up their digital transformation with reliability, agility, and cost effectiveness, fueling the commercialization graph of software defined networking technology market. Driven by the growing adoption rate of virtualized solution across several sectors including retail, government, banking, healthcare, IT services, and consumer goods, SDN market size has been forecast to grow tremendously over the years ahead.

The U.K. based telecommunications behemoth, Colt Technology Services, has apparently declared its plan of expanding its On Demand SDN service across APAC belt. Powered by Colt IQ Network, the firm’s On Demand SDN services are characterized by high flexibility, real-time bandwidth variation, and agility. Making a profound headway in APAC software defined networking technology market share with the successful launch of these services in Japan, Colt is planning to introduce the same On Demand SDN services in Hong Kong and Singapore as well in the second quarter of this year.

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The Asia Pacific software defined networking technology market is anticipated to grow at a CAGR of over 40% during the projected timespan. This is attributed to the increasing adoption of cloud computing and network virtualization technologies. The high investments by telecom service providers will enhance the connectivity infrastructure in the region, augmenting the use of SDN solutions. For instance, China’s telecom companies, such as China Mobile China Unicom, and China Telecom, are set to invest over USD 180 billion by 2023 in the development of the 5G infrastructure, which is expected to supplement market growth. Furthermore, increasing penetration of smartphones and the internet is also adding to market growth.

Tremendous technological interventions in the telecom sector have evidently narrowed the gap between developing and developed nations, giving SDN industry players lucrative opportunities to extend their geographical reach. However, considering the immense investments by U.S. telecom service providers in software defined networking, the regional software defined networking technology market has undoubtedly turned out to be hotbed for potential investors. For instance, American telecom giant AT&T has recently poured in USD 200 million to support startups that mainly focusses on promoting SDN technology and connected services. These kinds of hefty investments toward integrating new age software facilities in the existing telecommunication network is certain to leave a positive impression on U.S. SDN market size.

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The key vendors operating in the software defined networking technology market are HP, AT&T, IBM, Intel, Juniper, Huawei, Pics8, Big Switch Network Plexxi. Extreme Networks Arista Network, Pluribus, Pics8, NEC Corporation, and Cisco. The major players are strategically acquiring various SDN-based start-ups to enhance product capabilities and gain technical expertise. For instance, in November 2017, the VMware acquired Velocloud to expand its presence in the software defined networking market. VMware intends to integrate Velocloud’s SDN technology into its existing product portfolio.