Software-Defined Compute Market Size to grow by USD 9627.3 million between 2024-2028

Technavio, a leading provider of market research reports, has released its latest study on Software-Defined Compute Market. This report offers a comprehensive analysis of the current market trends, emerging opportunities, and key challenges. The surge in demand for software-defined data centers (SDDC) is fueling the growth of the software-defined compute market. SDDCs allow enterprises to virtualize and manage infrastructure resources such as compute, storage, security, and network through software. This abstraction automates infrastructure management, leading to increased capacities in computing, storage, and network, as well as enhanced security. Other advantages of SDDCs include reduced provisioning times for new resources, cost savings through efficient infrastructure utilization, and seamless workload migration to public or hybrid clouds. As a result, vendors in the global software-defined compute market are providing SDDC solutions to businesses to help them optimize their IT infrastructure.

Key Highlights

Growth Projections

The global software-defined compute market  size is estimated to grow by USD 9627.3 mn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  14.76% during the forecast period. Extented strategic relationships and M and A is driving market growth, with a trend towards emergence of software-defined data centers  However, security challenges  poses a challenge.Key market players include Alphabet Inc., Amazon.com Inc., BMC Software Inc., Broadcom Inc., Cisco Systems Inc., Citrix Systems Inc., Datadog Inc., Docker Inc., DXC Technology Co., Dynatrace Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Inspur Group., International Business Machines Corp., Microsoft Corp., Nutanix Inc., Open Text Corporation, Oracle Corp., ScienceLogic Inc., and VMware Inc..

Know what is trending in the market - Access a free sample report! 

Major Findings

• The Software-Defined Compute market is witnessing an increase in extended strategic relationships and mergers and acquisitions (M&A) activities. Companies are forming alliances to expand their offerings and enhance their competitive edge. M&A deals enable organizations to acquire new technologies, enter new markets, and strengthen their market positions. These strategic moves are shaping the Software-Defined Compute landscape and driving innovation in the industry.


• The Software-Defined Compute market is witnessing significant growth due to the increasing demand for private and hybrid cloud solutions. Businesses are seeking more control and flexibility in their IT infrastructure, leading to a surge in the adoption of software-defined technologies. Software-defined compute enables organizations to allocate computing resources dynamically and efficiently, making it an ideal choice for businesses looking to optimize their IT investments. Private and hybrid cloud solutions offer enhanced security and customization, further fueling the demand for software-defined compute solutions.


• The Software-Defined Compute (SDC) market is experiencing significant growth, but it also presents unique security challenges. With the increasing adoption of SDC, the attack surface expands, making it crucial to secure the underlying software infrastructure. Threats such as data breaches, denial-of-service attacks, and unauthorized access pose significant risks. Implementing robust security measures, such as encryption, access control, and intrusion detection, is essential to mitigate these risks and ensure the confidentiality, integrity, and availability of data in SDC environments.


• The Software-Defined Compute market is currently facing a decrease in demand for server virtualization solutions due to maturity in the market and the emergence of containerization technologies. Intense competition from established players and new entrants is further intensifying the market landscape, necessitating a strategic focus on innovation and differentiation to maintain market share.

Market Research Overview

The Software-Defined Compute market falls under the broader scope of the global Internet services and infrastructure market. This market encompasses businesses offering services and infrastructure related to the Internet industry, such as data centers, cloud networking and storage infrastructure, hosting services, IT security services, and cloud computing services. Excluding software product providers, this market generates significant revenue through IT consulting and system integration, application services, electronic data processing, business process outsourcing, infrastructure services, and Internet services. According to Technavio, the market size is determined by the combined revenues of companies operating in all these sectors.

The Software-Defined Compute Market is experiencing significant growth, fueled by the Extented strategic relationships and M and A. Businesses are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

For insights on company offerings- Request a sample report!

Regional Insights

The Software-Defined Compute (SDC) market is experiencing significant growth due to its ability to deliver agile, efficient, and cost-effective computing solutions. Businesses are increasingly adopting SDC to optimize their IT infrastructure, enabling them to respond quickly to market demands and reduce operational expenses. This technology allows for the centralized management of computing resources, resulting in improved performance, scalability, and flexibility. Additionally, the integration of advanced features such as automation and orchestration further enhances the value proposition for organizations. Overall, SDC is a strategic investment for businesses seeking to gain a competitive edge in today's dynamic marketplace.

Research Analysis Overview

The Software-Defined Compute (SDC) market is experiencing significant growth due to the increasing adoption of cloud infrastructure in next-generation data centers. Cloud service providers are investing heavily in cloud-based solutions, including Software-Defined Infrastructures (SDI), to meet the demands of businesses for high performance, reliability, operational agility, and automated management. The rise of 5G and multi-cloud strategies is driving up internet usage and the need for more compute resources. Machine Learning (ML) and Artificial Intelligence (AI) applications require massive processing power, making SDC an essential component of cloud deployments. SDC allows for the automated management of compute resources, enabling IT productivity and reducing capital expenditure. However, interoperability issues and virtualization standards can pose challenges for datacenter operators. The integration of Software-Defined Networking (SDN) and unified management solutions is addressing these challenges, enabling seamless cross-connect IT services and colocation centers. Energy usage is a critical concern, and SDC's ability to optimize energy consumption is a significant advantage. In summary, the Software-Defined Compute market is a crucial aspect of the cloud computing services landscape, providing high-performance, reliable, and agile compute resources for businesses in an era of increasing internet usage, ML, and AI applications.

About Technavio                                                                        

Technavio is a global market research company offering comprehensive reports and insights on various industries. Our research helps businesses make informed decisions by providing actionable data and trends. Technavio is based on four simple principles: easy-to-access reports, robust industry coverage, a focus on new and emerging technologies, and competitive pricing. We believe in helping companies and executives become better equipped to make faster, sounder, and more effective decisions. Technavio is one of the most influential market research and advisory firms in the world. We work with business and technology leaders to provide cutting-edge market research and insights to companies. 

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/