Intelligent CIO Middle East Issue 07 | Page 82

EDITOR’S QUESTION TO WHAT EXTENT ARE REGIONAL CIOs INVESTING IN SDN TO RESTRUCTURE EXISTING LEGACY NETWORKS? A ccording to a recent International Data Corporation (IDC) forecast, the worldwide softwaredefined networking (SDN) market — comprising physical network infrastructure, virtualisation/control software, SDN applications (including network and security services), and professional services — will have a compound annual growth rate (CAGR) of 53.9% from 2014 to 2020 and will be worth nearly $12.5 billion in 2020. Software-defined networking continues to gain market traction as an innovative architectural model capable of enabling automated provisioning, network virtualisation, and network programmability for data centres at cloud-providers and enterprise networks. Although SDN initially found favour in hyper-scale data centres and at large-scale cloud service providers, it is winning adoption in a growing number of enterprise data centres across a broad range of vertical markets. Indeed, SDN 82 INTELLIGENTCIO (Source: SDxCentral) delivers the agility, flexibility, and programmability that align closely with IDC’s 3rd Platform for IT, especially for public and private cloud rollouts. While the physical network, encompassing data centre switches, will still account for the largest single segment of the SDN market in 2020, the fastest growth will be found in the two software categories – the virtualisation/control layer and SDN applications – which together will be worth approximately $5.9 billion. IDC expects the virtualisation/control layer software market to reach $2.4 billion in 2020, with a CAGR of nearly 64% during the forecast period. SDN applications – including Layer 4-7 network and security services and analytics – are forecast to achieve a CAGR of 66% through 2020, when they will account for revenue of more than $3.5 billion. www.intelligentcio.com