Software-Defined Data Center Market Size

Software-Defined Data Center Market Size

Software-Defined Data Center Market was valued at USD 56.5 billion in 2022 and is projected to grow at a CAGR of over 19% between 2023 and 2032. Global expansion of the industry is driven by the flexibility and scalability offered by SDDC solutions. SDDC provides a more flexible and scalable infrastructure compared to traditional data centers. With software-defined architecture, resources can be dynamically allocated and adjusted based on workload demands. This scalability allows organizations to adapt quickly to changing business needs, ensuring that they can efficiently manage varying workloads without over-provisioning hardware resources.

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To that end, in August 2023, VMware, Inc. broadened its existing collaboration with Oracle to assist clients in modernizing their VMware workloads on Oracle Cloud Infrastructure (OCI). In this extended partnership, customers now have the option to enroll in Oracle Cloud VMware Solution through VMware Cloud Universal. This program, designed for flexible procurement and consumption, streamlines the process for businesses seeking to adopt eligible VMware Cloud services. VMware Cloud Universal is particularly advantageous for organizations with hybrid cloud architectures, those with extended or fluctuating cloud migration timelines, or those with specific cloud bursting needs.
 

One of the primary drivers for the adoption of SDDC is the need for increased automation and orchestration in data center operations. Citing an instance, in October 2023, Microsoft unveiled its plan to establish a team focused on researching data center automation and data center robotics. The company is actively recruiting for the position of hardware automation team manager, particularly seeking expertise in robotics, according to insights from DCD. This strategic move follows a recent incident where a Microsoft Azure outage in Australia was attributed in part to shortcomings in software automation. The outage occurred when a utility power sag triggered the shutdown of cooling units, leading to rising temperatures. In this context, the lack of on-site staff for manual rebooting prompted the automated system to shut down servers to prevent overheating, highlighting the need for enhanced automation measures such as rebooting the cooling units directly.

SDDCs enable the automation of various tasks, such as provisioning, configuration, and management of infrastructure components. This automation leads to improved efficiency, reduced manual errors, and faster response times to changing business requirements. However, security has been a significant concern for organizations considering the adoption of SDDC. As data becomes more virtualized and software-defined, there are increased attack surfaces and potential vulnerabilities that cybercriminals could exploit. Ensuring the security of virtualized infrastructure and data in a software-defined environment is crucial, and concerns about the robustness of security measures may restrain some organizations from fully embracing SDDC solutions.