Dell'Oro: Fast Growth Trajectory for SDN Market

The Software Defined Networking (SDN) Market will grow more than six-fold over the next five years, according to a new report from Dell'Oro Group.  The majority of this market (75%) will consist of Ethernet switches and network security appliances.

"Almost every major Ethernet Switch vendor with exposure in the data center is announcing significant new products over the next several weeks.  To put perspective on the order of magnitude of the data center equipment market, in 2013 sales will exceed $100 B, split between Servers, Storage, Ethernet Switches, and Data Center Appliances, etc.  We predict a wide variety of manufacturers will engage in battle for the supremacy of data center spending and control," said Alan Weckel, Vice President at Dell'Oro Group.

"For Ethernet Switching, data center share will become an increasingly important metric for three reasons: almost all revenue growth in the market over the next five years will come from data center products; vendors will have to fight each other for ever-fewer, although larger, deals; and SDN is changing who owns application and network control points," Weckel stated.

The report examines the disruptive elements to the Ethernet Switch market in the data center, including SDN, Cloud, Virtualization, and the impact of White Box Switching.  The Report addresses issues such as: the importance of SDN to the data center; the portion of the market attributed to White Box and the effect of the Cloud on Ethernet Switch, Application Delivery Controller and Network Security Appliance Markets.  The report also reveals first half 2013 vendor placement in the data center Ethernet Switch market and how Brocade, Cisco, Dell, Hewlett-Packard, Extreme, Huawei, IBM, and Juniper place in this increasingly important segment.

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