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2 DATA CENTER AUTOMATION MARKET By Solution (Server, Network, Storage Automation), By Services (Consulting, Installation and Support Services), & By End User (Enterprises, Cloud Service Providers, Colocation Service Providers) GLOBAL FORECAST TO 2019 It s all about markets MARKETSANDMARKETS sales@marketsandmarkets.com

3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. 1

4 1 INTRODUCTION 1.1 OBJECTIVES OF THE STUDY To define, describe, and forecast the global data center automation market on the basis of solution, services, and end users To provide a detailed information regarding the major factors influencing the growth of the market (drivers, restraint, opportunities, industry specific challenges, winning imperatives, and burning issues) To strategically analyze micro markets with respect to individual growth trends, future prospects, and contribution to the total market To analyze the opportunities in the market for stakeholders and details of a competitive landscape for market leaders To forecast the revenue of market segments with respect to five main geographies namely, North America (NA), Europe, Asia-Pacific, Middle East and Africa (MEA), and Latin America (LA) To strategically profile key players and comprehensively analyze their market shares and core competencies To track and analyze competitive developments such as joint ventures, Mergers and Acquisitions (M&A), new product developments, and Research and Developments (R&D) in the data center automation market 1.2 MARKET OVERVIEW Increasing usage of Internet and networking globally has significantly augmented the demand for more storage space, computing power, and complex networking. This demand has given rise to the scaling of infrastructure in the existing data centers, thus increasing the Capital Expenditure (CAPEX) and operating expenditure for data centers and enterprises. This scaling up has also increased the complexity in networking, unification, and pooling of resources in the data centers. To overcome these issues of rising demand for resource pooling, simplification in networking, and overall management of data centers, innovators have come up with the sophisticated concept of data center automation which is also known as Software Defined Data Centers (SDDCs). This concept helps traditional data center users to scale up their existing infrastructure seamlessly, thereby resulting in reduced overheads. It also helps in unification of server storage and networking, along with simplified management of all resources. Data center automation helps to overcome the obstacles of scalability, flexibility, manageability, and reduced costs, which is in turn helping enterprises and service providers in managing their existing data centers and networks. Another major driver for data center automation is its inherent capability of interoperability, which enables solutions to get implemented on any hardware irrespective of the vendor or manufacturer, with an added advantage of multi-tenancy support. The future adoption of automation technology is expected to be in heterogeneous environments and hybrid clouds, with more focus on software-defined security. The data center automation market research report analyzes market dynamics, future roadmaps and global trends, and also provides competitive intelligence and forecasts over the next five years. The report broadly comprises the data center automation market by solutions: server, network, and storage; by services: installation services, consulting services, and support services; by end users: SME and large enterprise; by regions: NA, APAC, Europe, MEA, and LA. 2

5 1.3 MARKETS COVERED This research report categorizes the data center automation market into the following segments: Global Data Center Automation Market, By Solution Server Automation Network Automation Storage Automation Global Data Center Automation Market, By Services Consulting Services Installation and Support Services Global Data Center Automation Market, By End User Enterprises Cloud Service Providers Colocation Service Providers 3

6 Global Data Center Automation Market, By Vertical Segment Banking, Financial Services, and Insurance (BFSI) IT and Telecom Media and entertainment Public Sector Retail Manufacturing Healthcare Others* *Notes: Others include oil and gas, and energy and power. Global Data Center Automation Market, By Region NA (NA) Europe APAC MEA 1.4 STAKEHOLDERS The data center automation market consists of the following stakeholders: Software vendors Telecom operators IT service providers System integrators Network operators Communication equipment providers Cloud service providers Data center vendors Colocation providers Virtualization software providers Internet Service Providers (ISPs) 4

7 1.5 MARKET SCOPE Data center automation is a process which is primarily delivered through various automation software solution and services that provides centralized access to almost all vital resources of data center. In other words, this automation software helps in automation and pooling of these resources in order to work on shared architecture. The data center automation software solution typically consists of software solution such as network, server, and storage automation The data center automation software services typically consists of services such as consulting, and installation and support services 1.6 CURRENCY The base currency used in the report is U.S. dollars, with market size indicated only in $million. For companies reporting their revenues in U.S. dollars, the revenues were picked from their annual report For companies that reported their revenues in other currencies, average annual currency conversion rate was used for the particular year to convert the value into U.S. dollars 5

8 2 RESEARCH METHODOLOGY This research study involves the usage of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg BusinessWeek, Factiva, and OneSource, to identify and collect information useful for this technical, market-oriented, and commercial study of the data center automation market. The primary sources are mainly several industry experts from core and related industries and preferred suppliers, manufacturers, distributors, service providers, reimbursement providers, technology developers, alliances, standards and certification organization authority bodies, and organizations related to the segments of this industry s value chain. In-depth interviews were conducted from various primary respondents that include key industry participants, Subject Matter Experts (SMEs), C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information as well as to assess future prospects. The following illustrative figure shows the market research methodology applied in making this report on the data center automation market. FIGURE 1 RESEARCH DESIGN Historical Data for the Datacenter Automation Market Evolution Market Share Datacenter Automation Value Chain Competitive Landscape Regulatory Landscape Geographic Usage Pattern Influencing Factors (Market Trends and Dynamics) Market Drivers: Innovation in processing power and memory High Demand for resource Pooling Custom/Manual networking configuration Market Restraints: Interoperability issues Market Opportunities: New Heterogeneous environment Hybrid Clouds Software defined security Agreements, Collaborations, and Partnerships: More than 30 deals in the last three years New Product Launches: More than 40 new product launches in the last three years Geographic Analysis Forecasting Historical Data of the Market Impact Analysis of Market Trends Market Size and Forecast by Automation Solution Market Size and Forecast by Services Market Size and Forecast by End users Arrive at the Market Size, Share, and CAGR for the Datacenter Automation Market In the secondary research process, various secondary sources were referred to for identifying and collecting information for this study. The secondary sources include annual reports, press releases, and investor presentations of companies, white papers, certified publications, articles from recognized authors, gold standard and silver standard websites, directories, and databases. The secondary research was mainly used to obtain key information about the industry s supply chain, the market s monetary chain, the total pool of key players, market classification and segmentation according to industry trends, geographic markets, and key developments from both market and technology-oriented perspective. 6

9 In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include industry experts such as CEOs, vice presidents, marketing directors, technology and innovation directors, and related key executives from some of the major companies and organizations operating in the data center automation market. After the complete market engineering (which includes calculations of market statistics, market crackdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and to verify and validate the critical numbers arrived at. Primary research was also conducted to analyze the segmentation types; industry trends; key players; competitive landscape of data center types provided by different market players; and key market dynamics, such as drivers, restraint, opportunities, industry trends, and key player strategies. In the complete market engineering process, both top-down and bottom-up approaches were extensively used along with several data triangulation methods to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list key information/insights throughout the report. 2.1 DESCRIPTION OF THE DEMAND-SIDE ANALYSIS Our forecast of the size of the global data center automation market for 2019 is the product of a bottomup model constructed by integrating inputs on the key drivers and trends of demand outlined in the main report. In chapters XX and XX, we have outlined the key drivers and trends that will shape the global data center automation market. The key drivers that are expected to have a high impact on the market include innovation in processing power and memory, high demand of resource pooling, and custom/manual networking configuration. The innovation in processing power and memory, and high demand of resource pooling are the two drivers that have a direct impact on the demand of data center automation solution; whereas, the custom/manual networking configuration is the driver that have an indirect impact on the demand of data center automation solution. This section provides the details of various emerging markets related to datacenter industry DATA CENTER COOLING Data center cooling, a critical element in the efficient functioning of a data center, signifies the cooling systems and technologies for enhancing its performance. Efficient cooling technologies highly reduce the operational cost of a data center. Because of traction in data center deployment rate, requirement for data center cooling is continuously increasing, creating opportunity for various data center equipment and service companies to take a dive in this pool. For achieving efficient and cost-effective operation of a data center, it is extremely important to reduce the cost associated with it. In the present scenario, organizations are moving from maintaining manual records to maintaining electronic records. This transition of data management from manual to electronic requires efficient data storage. Also, government has started imposing various environmental regulations on the data center operations, creating demand for eco-friendly solutions. It is estimated that cooling contributes to XX% of total data center power consumption; thus, it is strictly required to reduce the cost associated with power consumption involved in cooling of data centers. So, with the increasing need of operational cost reduction across various industry verticals, data center managers are forced to implement cost-effective and efficient data center cooling technologies, as with efficient cooling technologies, energy consumption can be reduced by XX%. 7

10 The figure shown below is the parfait chart of datacenter cooling regional market from 2013 to 2018 FIGURE 2 DATA CENTER COOLING PARFAIT CHART 9,000.0 XX 8,000.0 XX 7,000.0 XX 6,000.0 XX 5,000.0 XX 4,000.0 XX 3,000.0 XX 2,000.0 XX 1,000.0 XX North XX America Europe XX APAC XX MEA XX Latin XX America EMERGING DATA CENTER COOLING TECHNOLOGIES With continuous technological innovation, various technologies for cooling data centers are emerging. These technologies reduce the operational expenditures and are eco-friendly as well. In comparison to traditional cooling technologies, the emerging cooling technologies are expected to experience high growth in the coming years F r e e c o o l i n g Free cooling is a recent technology for cooling data centers; it utilizes naturally cool water or air, in spite of mechanized cooling techniques. In free cooling process, cold air in elevated geographical regions and cold water from local rivers, lakes, or oceans is used. This air or water is filtered and humidified before forcing it to the data centers. Free cooling technology can be categorized into three categories such as air-side, water-side, and evaporative. In air-side free cooling, natural air is forced into the data center in both direct and indirect manner. When air is forced into the data center through filters, it is said to be direct air-side free cooling; if heat exchangers are used, then the cooling is indirect. Water-side free cooling refers to the cooling process in which the cooling medium is moved through the cooling towers rather than compressors or chillers. In evaporative free cooling, air is forced into a chamber and cooled there with the help of evaporating water. In the present scenario, data center managers are forced to reduce their operating expenses and cooling contributes to a large portion of data center operational expenses. Employing naturally cooled air or water for cooling the data centers can lower the operational cost by eliminating or lowering the usage of mechanized cooling components in a data center. Thus, free cooling can be considered as a cost-effective and eco-friendly alternative for cooling data centers. Along with the benefit of cost reduction, free cooling also presents a critical issue in front of the data center managers. This issue is transformation from traditional to free cooling systems. Chilled water is the most common method of cooling a data center, and with this technology it is not required to remove the cooling towers and piping systems. So, air-side and evaporative free cooling systems are not considered beneficially feasible. Also, free cooling presents location constraints, as regions with high humidity are not 8

11 appropriate for it. Stulz, Daikin, and Verne Global are some of the prominent players in the free cooling market. In the coming years, free cooling technology is expected to grow fast because of extensive need for reducing operating expenses and government regulations for eco-friendly cooling solutions L i q u i d C o o l i n g Processing requirement of computational devices is extensively increasing with time. In order to process data faster, the internal hardware components have become more complex and dense. This has increased the power requirement of systems, which in turn results in enormous amount of dissipated heat. For efficient operation of these systems, competent cooling technology is required. Liquid cooling is such a technology and refers to the process of cooling internal hardware of a high-processing computational device. In the present scenario, data centers are facing crucial budget constraints, and in order to manage the data center operations economically, it is extensively essential to reduce its energy consumption. Liquid cooling technology works at the internal hardware level and helps in cooling the data center racks at the server- or rack-level itself, by removing heat from Central Processing Units (CPUs), Graphics Processing Units (GPUs), memory, and other hot spots. A liquid cooling system in a data center basically comprises of an integrated pump, reservoir and cold plate unit; a heat exchanger and a piping system to connect the first two units. The liquid cooling systems works on the fundamental principle of thermodynamics of heat moving from hotter to cooler place. In a data center liquid cooling system, heat is moved from the cold plate to the liquid, which is shoved by the pump to the heat exchanger, and this cools the server components. At the heat exchanger, heat is transferred from the circulating liquid to the air outside, which is finally removed from the system through cooling fans. Liquid cooling technology is more efficient than the traditional air cooling technology, in reference to heat removal at the server level. It enables proficient functionality of a data center even if the density per rack is increased and also reduces the noise level. Initial cost for liquid cooling systems is high as these are comparatively expensive, especially in a customized build-up. Some of the prominent players in the liquid cooling space are Asetek, Green Revolution Cooling, and Coolcentric. In the present scenario, liquid cooling technology in data centers is not widely accepted, because of high cost involved, difficulty in installation, and lack of knowledge. But with time, this technology is expected to enhance its presence in the data center cooling solutions market, enriching the data centers with efficient operability E v a p o r a t i v e C o o l i n g Evaporative cooling denotes the process of cooling through evaporation and works on a basic principle, when hot air is applied to a liquid, it gets evaporated and the air becomes cooler again. Heating a liquid to an extent where it gets evaporated, removes more heat than heating it normally, and thus evaporative cooling is a highly efficient cooling technology. Evaporative cooling is sometimes also known as adiabatic cooling or swamp cooling. Evaporative cooling technology is an efficient way of cooling the data centers. Cooling tower, the evaporative cooling system comprises of cooling pads, pump, motor, and a water tank. Water is supplied to the top of the cooling pads, which is designed to hold moisture. When hot air enters the chamber, water in the cooling pads evaporates, cooling the air, which is then pushed out of the chamber. When the cooling pads get saturated with water, extra water seeps down to the water tank. Evaporative cooling technology is an efficient data center cooling technology and reduces the power consumption. Big giants such as Google, Facebook, and Microsoft are using evaporative cooling technology for cooling their data centers. Evaporative cooling systems involve less installation cost, utilize little power, and are easier to install and maintain. With the augmenting need for efficient, eco-friendly, and green data center cooling technologies, evaporative cooling fits in appropriately. For good results, this technology 9

12 needs consistent water source and an environment with warm temperature. These requirements sometimes limit the usage of evaporative cooling technology. Munters, EcoCooling, and Excool are some the major players in the evaporative cooling technology. Although evaporative cooling technology is comparatively new to the data centers, it is expected to grow in the coming years because of its benefits GREEN DATA CENTERS Rapid amplification of power consumption and associated cost in conventional data centers are forcing companies to come up with energy-efficient data centers with minimal impact on surrounding environment. Green data centers have evolved as a solution to this problem of increasing energy consumption and expenditures. Green data center is a storehouse, where data is stored, processed, managed, and distributed in a way such that utmost energy efficiency is obtained with least impact on the environment. Deployment of a green data center is comparatively expensive, but tends to long-term cost saving in Operational Expenditure (OPEX). Utilization of efficient, off-the-shelf equipment and advanced energy management systems can reduce the greenhouse gas emission by more than XX%, causing lot of monetary savings. A number of big players such as Apple, Microsoft, Google, Amazon, and Facebook are also involved in the greener approach to data centers, saving enormous amount of energy. Even General Motors, an automotive manufacturing giant, has come up with its own green data center, Warren Enterprise Data Center, a $XX million data center, which reduces its IT infrastructure energy consumption by XX%. The company has also started building another green data center in Milford, with intentions of closing its XXleased data centers around the world. Apple has also started working on its XX% green solar-powered data center in Reno, Nevada. Microsoft s data centers in Iowa, Ireland, Virginia, and Washington are intended to make use of only XX% of total water used by conventional data centers. Major vendors in the green data center market are Cisco, IBM, Dell, HP, Oracle, Fujitsu, Hitachi, APC, and EMC. 2.2 MARKET SIZE ESTIMATION Both, top-down and bottom-up approaches were used to estimate and validate the size of the global market and to estimate the size of various other dependent submarkets in the overall data center automation market. The research methodology used to estimate the market size includes the following details: the key players in the market were identified through secondary research and their market shares in respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders, such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined by using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data is consolidated and added with detailed inputs and analysis from MarketsandMarkets and presented in this report. 10

13 The following figure shows an illustrative representation of the overall market size estimation process employed for the purpose of this study. FIGURE 3 MARKET SIZE ESTIMATION METHODOLOGY: BOTTOM-UP APPROACH BOTTOM-UP APPROACH (SEGMENTAL ANALYSIS) GLOBAL DATACENTER AUTOMATION MARKET Arrival at Global Market Size Share of Company s Revenue in Overall Market Primary: Demand and Supply Side Experts Secondary: Annual Reports, Presentations, Press Releases, Journals, Paid Databases, and MarketsandMarkets Repository Company-wise Revenue Primary: Demand and Supply Side Experts Secondary: Annual Reports, Presentations, Press Release, Journals, Paid Databases, and MarketsandMarkets Repository FIGURE 4 MARKET SIZE ESTIMATION METHODOLOGY: TOP-DOWN APPROACH TOP-DOWN APPROACH (SEGMENTAL ANALYSIS) GLOBAL DATACENTER AUTOMATION MARKET Total Global Data Center Automation Market ($Billion) The Global Market Size is Validated Through Primaries (Demand and Supply Side Experts) Percent Split for the Market Segments of Datacenter Automation Market Secondary: Annual Reports, Presentations, Press Release, Journals, Paid Databases, and MarketsandMarkets Repository Primary: Demand and Supply Side Experts Geographical Split Regional and Country-wise Market for Each Subsegment Primary: Demand and Supply Side Experts Secondary: Company Websites, Press Releases, and News Articles Secondary: Annual Reports, Presentations, Press Release, Journals, Paid Databases, and MarketsandMarkets Repository Primary: Demand and Supply Side Experts The bottom-up procedure was employed to arrive at the overall market size of the global data center automation market from the revenue of key players (companies) and their shares in the market. 11

14 Calculations based on the revenue of key companies identified in the market led to the overall market size. This overall market size was used in the top-down procedure to estimate the sizes of other individual markets (mentioned in the market segmentation of components, services, architecture type, end users, and geography) via percentage splits from secondary and primary research. For the calculation of each type of specific market segment, the most appropriate immediate parent market size was used for implementing the top-down procedure. The bottom-up procedure was also implemented for data extracted from secondary research to validate the market segment revenues obtained. Market shares were then estimated for each company to verify the revenue shares used earlier in the bottom-up procedure. With the data triangulation procedure and validation of data through primaries, the exact values of the overall parent market size and each individual market size were determined and confirmed in this study. The data triangulation procedure implemented for this study is explained in the next section. FIGURE 5 BREAK DOWN OF PRIMARY INTERVIEWS: BY COMPANY TYPE, DESIGNATION, AND REGION NUMBER OF PRIMARIES: BY COMPANY NUMBER OF PRIMARIES: BY DESIGNATION NUMBER OF PRIMARIES: BY REGION Tier 1 Companies Tier 3 Companies 3 Tier 2 Companies C Level Director Level Others* North America Europe Asia-Pacific ROW Note: *Others include sales managers, marketing managers, and product managers 2.3 MARKET BREAKDOWN AND DATA TRIANGULATION After arriving at the overall market size from the market size estimation process explained above, the total market was split into several segments and sub-segments. In order to complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments, the data triangulation and market crackdown procedure was employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market was validated using both top-down and bottom-up approaches. 2.4 MARKET SHARE ESTIMATION The market share for the data center automation solution and service companies has been arrived at on the basis of secondary data available through paid and unpaid sources and by analyzing product portfolios of major companies and rating them on the basis of performance and quality. These data points were further validated by primary sources. 3. The tier of the companies are defined on the basis of their total revenue, as of 2013: Tier 1 = >$XX billion, Tier 2 = $XX million to $XX billion, and Tier 3 = <$XX million 12

15 2.4.1 KEY DATA TAKEN FROM SECONDARY SOURCES PARAMETERS SOURCES 1 Market Size Company Financials Magazines Journals Press Releases Paid Databases, and The MarketsandMarkets Data Repository 2 Revenue of Companies Annual Reports Company Websites Public Databases, and The MarketsandMarkets Data Repository 3 Qualitative Information (Market Dynamics, Market Trends) Company Websites Annual Reports Press Releases, and The MarketsandMarkets Data Repository KEY DATA FROM PRIMAR Y SOURCES PARAMETERS KEY DATA 1 Geographic Split Overall market and sub-segments in 2014 CAGR of each region in the forecast period ( ) The global datacenter automation market, by geography NA, Europe, APAC, MEA, and LA 2 Global Market Size The global market size for the year 2014 CAGR for the forecast period ( ) The global datacenter automation market The datacenter automation market by sub segments 3 Market Split Solution Service End user Industry Verticals Regions Solution includes network automation, server automation and storage automation Service include consulting services, and installation and support services. End user includes enterprises, cloud service provider, and colocation service provider. Market across various industry verticals 13

16 K e y I n d u s t r y I n s i g h t s North America will be the major market accounting almost XX% of the total datacenter automation market. President and CEO, Leading IT Automation Company The average growth for the datacenter automation market will be between XX to XX%. CEO, Leading Provider of datacenter services More datacenters are now adopting automation in order to have ease in provision of colocation facilities. Head Operations, Leading Association for Datacenters Market for storage is currently smaller compared to other networking automation, but will grow at the higher rate in next five years due to growth in requirement of storage devices. Sales Director, Leading Automation Company Emerging markets such as India and China unfolds new avenues for the growth of datacenter automation market due to the adoption of outsourced services from developed nation. General Manager and Senior Director of Business Development, Leading IT Architecture Company Sources: Secondary Literature, and Expert Interviews. 14

17 2.4.3 ASSUMPTIONS TABLE 1 GLOBAL DATA CENTER AUTOMATION MARKET: ASSUMPTIONS Factor Assumption Impact Certainty of the Assumption Economy Political stability Rising storage needs and complex networking Exchange rates Saturation Financial statistics The global economic climate will be favorable till the end of 2019 Political stability is observed in most of the regions covered. The tensions prevailing in some regions will not hamper the economic growth A rise in distributed storage and diverse location operations will prevail during the forecast period The dollar fluctuations will not be as major as to affect the market forecast to a significant extent New markets will be found in emerging economies such as China and India The revenue and financial information mentioned on the company s website or its annual report is true to the best of MarketsandMarkets knowledge Increased IT spending globally Despite a few political debates and other minor issues across some verticals, the outlook will be positive Enterprises will need to collaborate their diverse operations to seek the best outputs and strive through the competitive environment The fall in the dollar price will enhance the revenue growth opportunities for the U.S. multinationals, whereas stability in the dollar value will stabilize the price of overseas transactions The data center automation solutions will gain traction in the emerging markets To ensure the authenticity of the financials mentioned Note: The market values have been rounded off till the second decimal. Due to this, there may be a slight difference in the actual total and the total mentioned in table. *Key: Very High High Moderate Low Very Low *Note: The definitions for the Market Importance would remain the same as the Key seen here for the rest of the moon charts. 15

18 CAGR ( ) Data Center Automation Market - Global Forecast to EXECUTIVE SUMMARY The rising need for virtualized data centers and the incessantly increasing data traffic has posed a threat to enterprises and infrastructure providers alike. The increased cost overheads and complexities in the networking environment have given way to the adoption of data center automation, thereby aiding companies in cutting down their operational expenditure and CAPEX. Typically, the infrastructure cost of data centers rises while scaling up from their existing architectures. This often leads to several complexities and interoperability issues between different components, thereby increasing the demand for a seamless software-defined environment. The SDDC comprises Software Defined Storage (SDS), Software Defined Networking (SDN), and software defined server/computer, wherein all the three components of networking are empowered by specialized controllers, which abstract the controlling plane from the underlying physical equipment. This controller virtualizes the network, server and storage capabilities of a data center, thereby giving a better visibility into data traffic routing and server utilization. This, in turn, results in a controller driven environment, which accentuates data center performance while ensuring significantly low Operating Expenses (OPEX). In this report, the data center automation market has been broadly segmented by solutions: network automation, server automation, and storage automation; by services: installation services, consulting services, and support services; by end users: SME and large enterprise; by regions: NA, APAC, Europe, MEA, and LA. The report also emphasizes on key adoption trends, evolution of data centers, future opportunities, and business cases in this innovative market. MarketsandMarkets expects an increasing adoption of SDDC solutions, as major vendors are aggressively investing and rigorously working toward building cost effective data center solutions, in an effort to reduce the overall cost incurred by end-users. The total data center automation market is expected to grow from $XX billion in 2014 to $XX billion by 2019, at an estimated Compound Annual Growth Rate (CAGR) of XX% from 2014 to FIGURE 6 GLOBAL DATA CENTER AUTOMATION MARKET, BY SOLUTION, % XX 25.00% XX 20.00% XX 15.00% XX XX 10.00% XX 5.00% XX 0.00% XX Rank (in terms of market size) Network XX Automation Server XX Automation Storage XX automation Sources: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis 16

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