Demands for agility, simplification and scale fueling global growth

GILBERT, ARIZONA, USA, October 16, 2015 /EINPresswire.com/ -- ACG Research has released its forecast for purchases of software-defined networking software and SDN enabled underlay networking platforms in service providers’ data centers during the period 2015–2019. The market for overlay networking and SDN software in service providers’ data centers will increase at a 50 percent CAGR through 2019 with worldwide revenues increasing from $100 million in 2015 to $1.2 billion in 2019. ACG Research provides market share and forecast analysis in the service provider equipment space, business modeling and key performance indicators consulting services, service creation, strategic messaging and go-to-market strategies in all aspects of the networking industry.

In parallel the percentage of physical underlay networking equipment being purchased for use in SDN enabled data centers is projected to increase to 90 percent of switching and routing platforms purchased for data center use in 2019. Revenue for SDN enabled physical underlay networking platforms sold into SPs’ data centers will grow from $200 million in 2014 to $6.9 billion in 2019, a CAGR of 66 percent.

“The market for data center networking solutions in service providers’ deployments is being driven by the demands for agility in service creation and delivery, simplification in operations, and economies of scale in every infrastructure dimension,” said Paul Parker-Johnson, practice lead for cloud and virtual system infrastructures at ACG. “Rapidly emerging ecosystems delivering open network hardware and software to customers are having a significant effect on the playing field, bringing lower total costs of ownership and increased flexibility in deployment to their users. During the period leading up to 2019 ACG sees an increasing percentage of the networking spend in service providers’ data centers being allocated to the software part of network solutions, whether it is overlay software or software running in switching and routing platforms supporting the overlay environments.”

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