The global SDN market is expected to grow rapidly, with a CAGR of 53.9% through 2020.
Published2016.04.21 17:34Rapid growth in virtualization/control layer and SDN applications
According to a research report by IDC (www.idc.com), the global SDN (Software Defined Network) market is expected to grow at a compound annual growth rate of 53.9% from 2014 to 2020, reaching a size of $12.5 billion in 2020. The SDN market includes physical network infrastructure, virtualization/control software, SDN applications (including network and security services), and professional services.
SDN continues to gain market traction as an innovative architectural model that enables automated provisioning, network virtualization, and network programmability in cloud provider data centers and enterprise networks. While initially seen in hyperscale data centers and large cloud service providers, adoption is now increasing in enterprise data centers across a range of industries.
▲ Samsung Electronics announced in December last year that it had successfully demonstrated SDN, a next-generation distributed networking technology for communications, with SK Telecom. (Reference photo)
SDN is closely linked to the 3rd Platform, which provides agility and flexibility to IT and enables programmability, particularly in public and private cloud deployments. The 3rd Platform is a platform based on mobile computing, cloud services, social networking, big data, and analytics technologies.
“With cloud computing and third-party platforms driving the need for SDN, the worldwide SDN market is expected to reach $12.5 billion by 2020,” said Rohit Mehra, vice president, network infrastructure research, IDC. “Large enterprises are already recognizing the value of SDN in their data centers, and will ultimately recognize its applicability to branch and campus networks via wide area networks (WANs) as well.”
In the 2020 SDN market, the physical network segment, including data center switches, is expected to remain the largest single segment, while the two fastest-growing segments are software segments: virtualization/control layer and SDN applications, which are expected to reach $5.9 billion in 2020.>
The virtualization/control layer software market is expected to grow at a high CAGR of 64% during the forecast period, reaching a size of $2.4 billion in 2020, while the SDN application sector is also expected to grow at a CAGR of 66%, reaching a size of $3.5 billion in 2020.
“While networking hardware will continue to dominate network infrastructure, SDN represents a shift in value in the networking industry from hardware to software over the long term,” said Brad Casemore, research director for IDC’s Data Center Networking practice. “For vendors, this signals a shift toward software- and services-based business models, while for enterprise customers, it means a more collaborative approach to IT and a more business-oriented understanding of how applications are delivered over the network.”
관련뉴스
Samsung Electronics demonstrates SDN, a next-generation distributed networking technology for telecommunications, in collaboration with SK Telecom
Samsung Electronics has successfully developed and demonstrated Korea's first distributed LTE switching system (SDN based Evolved Packet Core) based on next-generation communication technology in cooperation with SK Telecom.
2015.12.08by 신윤오 기자
.jpg)
SalePoint Signs Multi-Year Partnership Agreement with AWS… Promoting Identity Security that Integrates Even AI Agents
Sailpoint has entered into a multi-year strategic partnership agreement with AWS and is moving forward with establishing an integrated governance system that manages both human and non-human identities together. The plan is to consistently manage access permissions in an environment where AI agents are increasing as work execution entities, while applying the principle of least privilege and automated policy enforcement. The two companies plan to jointly expand capabilities to manage the identities of various entities, including AI agents, within a single layer in the AWS environment. This collaboration is interpreted as a move to design security and governance together in corporate environments where AI adoption is expanding.
2026.03.26by 배종인 기자
.png)
Databricks Unveils Open AI Security Monitoring 'Lakewatch'
Databricks entered the security market on March 24 by unveiling LakeWatch, an open-source agentic SIEM. The core functionality of this product is to integrate and analyze security, IT, and business data in a single environment to support AI-based threat detection and investigation. The company explained that it reduces the limitations of existing security operations centers, which have had to forgo some data due to high cost structures, and enables large-scale data analysis and automation based on open formats and ecosystems. LakeWatch is currently offered as a private preview, with Adobe and Dropbox mentioned as early customers. Databricks also announced an expanded partnership with Anthropic as well as the acquisition of Antimatter and SiftD.ai.
2026.03.26by 배종인 기자
Ecolab Expands AI Data Center Cooling Business Through Acquisition of CoolIT
Ecolab has agreed to acquire CoolIT Systems, a liquid cooling company for AI data centers, for approximately $4.75 billion. The transaction is expected to close by Q3 2026, subject to regulatory approvals. CoolIT has been supplying direct-to-chip cooling-based coolant distribution units, cold plates, and manifolds, serving hyperscale data centers and colocation operators as customers. This acquisition is a measure to address the high-heat and high-density server environments created by AI proliferation. Ecolab plans to combine its water management and digital monitoring capabilities with CoolIT's hardware technology to expand its data center cooling business.
2026.03.26by 명세환 기자
