The Software Defined Data Center market is expected to grow at compound annual growth rate of 68.7% from 2013 to 2018, a report said.

According to a report from MarketsandMarkets, the market will grow from $396.1m in 2013, and the growth will be driven by innovations in processing power and memory, high demand for resource pooling, manual/custom networking configurations.

Telecommunication service providers would be the largest users of SDDC offerings, followed by cloud service providers.

In the coming five years, North America is expected to be the biggest market for SDDC solution, while Asia-Pacific is expected to grow at a faster rate during the forecast period.

The analyst added that the growth in demand for cost effective and flexible data centre solutions along with the need for resource pooling, break down of vendor lock-ins and automatic networking configurations will impact the SDDC market.

According to the report, the SDDC solution can be independently operated while the solutions can also be integrated together to offer cost effective solution for the data centre.