Market Trends of Software Defined Networking Industry
Telecom and Cloud-Based Service Provider is expected to witness a significant growth
- Software-defined networking is widely used in the IT and telecommunication industry due to advantages such as data traffic control and easily manageable large networks. The advancement of communication technologies, increased data consumption, the expansion of smartphone use, and the rise of internet traffic as a result of IoT/M2M connectivity together drive the adoption of software-defined networking in the telecommunications industry.
- Enterprises are striving to run their IT infrastructure efficiently and find ways to manage and operate their networks effectively. Enterprises are modernizing traditional IT techniques on commodity hardware, such as storage, computing, and networking, especially to incorporate cloud technologies that allow rapid deployment and development of new network services. With an increasing number of cloud-based applications across enterprises, cloud-based services are becoming significantly popular.
- Over the past decade, the total adoption of cloud computing has been rising mainly due to the increasing investments from small and medium enterprises. The cloud-based services are becoming prominent as the number of cloud-based apps in organizations grows. The overall usage of cloud computing has increased over the last decade, which is primarily due to the increased expenditures from small and medium-sized businesses.
- Moreover, various companies in the industry are parting to launch SDN solutions. For instance, in October 2022, EdgeQ Inc., a provider of 5G wireless infrastructure, and Vodafone, a global telecoms mobile operator in Open Radio Access Networks, collaborated to create the next-generation, software-programmable 5G ORAN systems. The partnership would utilize ORAN to provide the world's first open programmable, completely in-line L1 accelerator card to support multi-carrier, massive MIMO. To handle the 5G macro cell deployments, this massively integrated architecture converges the whole 4G/5G Physical layer into a single card.
- Additionally, In March 2022, Nokia declared that it was chosen exclusively to collaborate with Vodafone on creating software-defined network manager and controller (SDN-M&C) solutions for the multi-access fixed network technology of the company. Both companies are performing proof-of-concept studies in Europe under the terms of the partnership.
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North America to Hold the Highest Market Share
- The North American region plays a very crucial role in terms of enhancing the growth of the software-defined network service market. It is mainly because of factors like the Inclining toward acceptance and implementation of advanced technology, development in network automation, the rise in the number of cloud-based services, and many others. Over the next five years, most IT teams are expected to increasingly adopt NaaS as suppliers provide hybrid offerings that involve software, cloud intelligence, and the alternative for the management of on-premises hardware devices.
- Moreover, substantial growth in connected and mobile devices is spiking the rise in the overall demand for enhanced network services. Since the United States has always stayed at the forefront of technology adoption, the region has witnessed the maximum adoption of connected devices, driving the market's growth opportunities significantly.
- Major companies in the region are collaborating and launching various solutions to remain competitive in the market. For instance, in June 2022, Kyndryl, the world's significant IT infrastructure services provider, and Cisco declared a technology partnership to help and assist enterprise customers boost their transformation into data-driven businesses mainly powered by Cisco solutions and Kyndryl managed services. Kyndryl and Cisco would also develop new private cloud services and networks, as well as edge computing solutions, software-defined networking solutions, and multi-network wide area network offerings delivered in an environment with various advanced security capabilities.
- Moreover, the increase in 5G rollouts and telecom companies across the region is playing a significant role in terms of driving market growth significantly. Also, the presence of various crucial SDN providers and the quick shift to 5G networks in this region positively impact the SDN market adoption. Further, the surge in the collaborations between 5G tech firms is becoming more common in the market for 5G technologies. This is mainly due to the firm's focus on building a solid 5G infrastructure and supporting creative platforms by pooling their resources, expertise, technology, and costs.
- Further, in June 2022, Qualcomm, a semiconductor firm located in the United States, acquired Cellwize Wireless Technologies Pte. Ltd. This acquisition is intended to improve Qualcomm Technologies' 5G network infrastructure, which would power the connected, intelligent edge, fuel the digital transformation of the sectors, and assist the rise of the cloud economy which in turn will augment the market growth drastically.
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