Global SDS market to grow at a CAGR of around 31% by 2020

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Software-defined storage (SDS): Key market research findings

  • The Americas to dominate the market geographically
  • BFSI segment accounts for a majority of the market’s revenue
  • Key vendors – EMC, HP, IBM, Nexenta, and VMware

Technavio’s market research analysts predict the global market for SDS to surpass $7 billion by 2020. The growth of this market is spurred by the effective management of unstructured data. Analytics solutions, when integrated with SDS solution for big data management, reduce costs and boost business agility. The integration of big data with network file systems and rapid provisioning of analytics applications streamlines the management of unstructured data for business intelligence. During 2015, the Americas accounted for around 55% of the overall market share to dominate the global SDS market. The rising demand for innovative IT architecture, fluctuating traffic patterns in networking infrastructure, and the rise of mobility technologies will fuel the growth of the SDS market in the Americas during the forecast period.

The new market research report from Technavio presents a breakdown and analysis of the SDS segments based on the end-user.

“The emergence of hyper-convergence technology is an upcoming trend in the market. A hyper-convergence infrastructure solution is a software-defined approach, which includes a combination of storage, compute, and virtual computing technologies in a single physical unit X-86-based server. This solution can reduce complexities in data centers by minimizing power consumption and optimizing space. This results in improved operational efficiencies, speed, and agility of data center services,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.

During 2015, the BFSI segment accounted for around 18% of the overall market revenue to become the key revenue generating vertical in the SDS market globally. The use of SDS in a BFSI environment gives analysts sufficient time to plan and manage their data to comply with evolving government regulations. SDS also provides storage enhancement through new application offerings. SDS enables efficient storage allocation through well-defined governing policies and eases the process of access provision through well-defined security policies.

The key vendors in the market include EMC, HP, IBM, Nexenta, and VMware. Vendors are consistently investing in the development of software-defined storage technology in response to the rapid rise in market demand for software-defined solutions. Microsoft is developing virtual infrastructure and virtual management product offerings and may release an updated version of Hyper-V virtualization product, in addition to Cloud OS, a cloud-based solution. Microsoft is also developing their cloud-based solution Azure that is deployed in the form of IaaS.

A more detailed analysis is available in the Technavio report, Global SDS Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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