Software Defined Networking Market Study 2018 by Transparency Market Research

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Transparency Market Research published a new report "Software Defined Networking (SDN) Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2012 - 2018" to its report store.

Transparency Market Research

Transparency Market Research

Software Defined Networking (SDN) Market:Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2012 - 2018

Software defined networking, or the commonly called SDN, is a networking approach wherein control of flow of data is decoupled from the hardware and is transferred to a software application called controller. In conventional networks, when a packet arrives at a switch, a predefined set of rules hardwired in the network’s switch decide the direction in which the packet needs to be forwarded. Amongst the innumerous packets on the network, the ones that need to be forwarded towards the same destination are sent by the switch along the same path. All the other packets on the network are also treated in the same manner.

For enterprise-level networks, application-specific integrated circuits (ASICs) can be used to design smart switches that can easily distinguish between different types of packets and treat or forward them accordingly, but such switches can be very expensive.

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With SDN, without any addition of such integrated circuits, additional functionality is achieved by the virtue of software applications. Using software applications to manage network flow allows network administrators and engineers to quickly respond to the changing data requirements in an enterprise setup.

In software-defined networks, the network administrator can change rules of any network switch whenever required and can prioritize, de-prioritize or even block certain types of packets easily from the network. The network administrator can also shape the flow of traffic by virtue of a central control console, without the need for touching individual switches. And this does not require manual intervention at every time a requirement changes – the software takes care of it to dynamically and automatically address the changing requirements.

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Such facilities are especially beneficiary when working in a cloud computing architecture – with multiple clients occupying and renting the same network line. In such cases, software defined networks allow the network administrator in managing the traffic loads in a much efficient and flexible manner. Essentially, this provides the network administrator a less expensive network management process and more control over the traffic flow through the network.

  • Applications:

SDN can be easily incorporated in enterprise or service based applications. But irrespective of their place of use, SDN provides a faster and more agile network flow, efficient maintenance and comprehensive transparency.

Though the technology is still in its nascent stage, it has amassed some big clients such as the telecommunications industry, cloud computing services and enterprise applications.

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  • Benefits of SDN:

With a centralized, controlled and programmable network that can dynamically and automatically manage changes in network flow and requirements, SDN can provide benefits of the following kind:

Reduces basic capital required for setting a network: by reducing the need to purchase the expensive, application-specific ASIC based network hardware, SDN reduces the overall cost of the network.

Reduces operational costs: a software defined network enables algorithms in gaining control of the network by building the network from network elements that are increasingly programmable, making it easy for the network administrators to design, manage and scale network of any kind. Automation helps in reducing not only the management time, but also the overall operational costs by providing very few chances for human error to bring undesired characters to the network flow.

Provides flexibility and quick service: by allowing businesses in rapidly deploying new services, infrastructure and applications, SDN helps them in meeting their goals and objectives.

  • The global Scenario:

Market analysts estimate that the global software defined networks market could have a value worth USD 3.52 billion by 2018, by observing year-on-year growth at CAGR of 61.5% between the years 2012 through 2018 (Transparency Market Research).

Primary factors driving the need for services and products from this market include increasing need for mobility and efficiency in networks. Rising demands for cloud services are also increasing demands for software defined networks.

Application wise, the enterprise sector currently holds the majority of market shares, accounting to nearly 35% of the entire SDN market. However, in the coming years, demands could significantly rise from the cloud service providers segment.

The biggest consumer of SDN technology, geography-wise, is the region of North America. Demand in this region is driven by favorable regulations and high rate of standardization of businesses in this market.

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