Software-defined networking to hit $3.1bn by 2017

Infonetics sizes up world market excluding SDN-capable Ethernet switches

The market for software-defined networking (SDN) controllers and Ethernet switches worldwide is tipped to expand to $3.1bn (£1.9bn) by 2017.

Infonetics Research announced the figure alongside a definition of the emerging SDN market to several websites on Friday US time, based on its latest Datacentre and Enterprise SDN Hardware and Software Report.

Cliff Grossner, directing analyst for datacentre and cloud research at Infonetics, said in a note posted to the Institute of Electrical and Electronics Engineers (IEEE) communications society website that although it is "still early days", SDN will play an increasingly significant role in enterprise and datacentre networks over the next few years.

"Wide-scale in-use SDN deployments will occur first in the datacentre with large enterprises and cloud service providers, followed closely by the enterprise LAN," he said.

"We are already seeing significant use cases for SDN in the enterprise LAN providing security and unification of wired and wireless networks, and enabling BYOD."

However, half of that $3.1bn by 2017 will be in the North American regional market, the note said.

Grossner added that one of the key questions is how to define the SDN market. As such, Infonetics also outlined some criteria and parameters for its research into the trend.

The report provides data for "important SDN market characteristics" including product categories, definitions, and worldwide and regional market size.

In particular, while SDN controllers and Ethernet switches that are being used for SDN are included, Ethernet switches that are merely capable of being used in SDN deployments are not.

"The important question that everyone wants answered is: "What's the real market for SDN?'," Grossner said.

He indicated that SDN is going through a "classic market adoption cycle", with many entrants looking for a niche but most end-user organisations still "kicking the tyres".

Many vendors have entered the market already, including Alcatel-Lucent, Brocade, Cisco, Dell, HP, Huawei, IBM, Juniper, NEC, VMware and Extreme Networks.

"Ten per cent of Ethernet switches will be in use for SDN by 2017," according to the note.