Software-defined Networking is an emerging computer architecture which offers a method to centrally manage and configure physical and virtual network devices such as switches, gateways, and routers in your datacenter. To achieve better integration between the physical network and virtual network, previous SDN-compatible devices can be used. Virtual network components such as Hyper-V Virtual Switch, RAS Gateway, and Hyper-V Network Virtualization are designed to be fundamental elements of an overall SDN infrastructure.

The main purpose of Software-Defined Networking is to enable administrators or network engineers and cloud computing to respond quickly to varying business requirements through a centralized control console. SDN incorporates a huge number of network technologies which are designed to make the network more agile and flexible to support the virtualized server of the present data center.

How does SDN work?

SDN providers offer a huge range of competing for architecture, the SDN method centralizes control of network via separating the control logic. Each SDN solutions have some version of software-defined networking controller, along with southbound and northbound API’s such as:

• Controllers

Controllers are the brain of the network. Software-defined networking controllers provide centralized control of the whole network. It allows network administrators or engineers to command to the underlying systems such as routes and switches.

• Southbound APIs

The software-defined network uses southbound APIs to transmit information to the routers and switches “below”.

• Northbound APIs

The software-defined network uses northbound APIs to interconnect with the business logic and applications “above”. It helps network engineers to programmatically shape traffic and organize services.

Business Benefits of SDN

Software-defined networking provides a programmable, centralized network which can dynamically offer so as to address the shifting needs of the business. SDN also provides the below mentioned business benefits:

• Centralizes Management: In Software-defined controller software, the Network Intelligence is logically centralized which maintains a global scope of the network that appears to SDN policy engines and applications as a logical, single switch.
• Directly Programmable: Software-defined networking policy is directly programmable as the control functions are integrated from forwarding functions, that allows the network to be programmatically arranged by proprietary including Puppet, OpenStack, and Chef.
• Reduce OpEX: Software-defined networking allows algorithmic controller of the network components such as software or hardware routers/switches that are highly programmable, making it simpler to deploy, design, scale and manage networks.
• Reduce CapEx: SDN potentially limits the requirements to purchase ASIC-based, purpose built networking hardware.
• Enable Innovation: Software-defined networking enables organizations to make a new form of application, business models, and services which can provide new revenue streams and high value from the network.
• Deliver Flexibility and Agility: SDN helps businesses to quickly deploy new services, applications, and infrastructure to speedily meet shifting business requirements and objectives.

Market Overview

The global software-defined networking market is expected to surge from US$ xx billion to US$ xx billion at a CAGR of xx% over the prediction period. The increasing demand for efficient management of network traffic and centralized control over network has stimulated communication providers to adopt the software-defined network. Huge acceptance of software-defined network has increased substantially across various industries due to the high network complexities, flexibility, time and cost efficiency in network infrastructure.

The software-defined network offers number of benefits comprising programmable control on the network, management of complex and wide data traffic, customized data control, and reduced operational and capital cost on network equipment, which have encouraged various organizations to adopt this technology. Growing implementation of mobility services, wide range of data generation, huge data network, IoT, and rising need of flexibility over the network infrastructure across several verticals, such as consumer goods & retail. Information Technology, BFSI, healthcare, telecom, defense, and others accelerate the global SDN market growth.

Enterprise are the main end-user of software-defined networking market, accounting for more than 43% of the global market share in 2015. However, the cloud service provider sector is expected to grow at the highest CAGR over the forecast period owing to the increasing use of cloud computing services by several organizations.

In terms of geography, the global software-defined networking market has been categorized as Europe, Asia Pacific, and North America. In between these, North America is dominated to be one of the largest contributor to the global market. However, Asia Pacific is also expected to grow at a highest rate over the forecast period, owing to the emerging trend of BYOD (Bring Your Own Device) in its developing countries of China, India, and Japan. Apart from that, around 70% of the market in Asia Pacific region is inclined towards keeping smartphones.

The global software-defined networking market has several leading players which are mainly concentrating on new merger & acquisition methods to obtain strong position in the market and also to maintain high revenue share across the globe. Some of the major players in the global software defined networking market includes Big Switch Network, Intel Corporation, HP, Verizon Communications, Cisco, and others.