Large data centers are increasingly turning to software defined networking (SDN) and network virtualization so providers can better manage networks.

Also, SDN and virtualization will be important for telecommunication networks, and will be used in hybrid, public and private cloud services, International Data Corporation (IDC (News - Alert)) predicts.

The SDN market for enterprises and cloud service providers will jump from $360 million in 2013 to $3.7 billion by 2016, the IDC reported in a recent study. This includes network infrastructure, SDN applications and control plane solutions, and SDN services, IDC adds.

There will be many benefits from the technology. "SDN's ability to decouple network logic and policies from the underlying network equipment allows for a more programmable network," Rohit Mehra, vice president, Network Infrastructure at IDC, explained in a recent statement carried by TMCnet. "Providing better alignment with the underlying applications, this programmability allows for greater levels of flexibility, innovation, and control in the network. Logic and policies that can be defined, changed, and modified result in a more dynamic network, providing the scale network administrators so desperately crave."

Also, IDC recently named five SDN startups to watch in the sector. These include: Big Switch Networks (News - Alert) which calls itself the "leader in Open Software-Defined Networking." Another company is Embrane, which provides virtual Layer 3-7 network services for traditional and SDNs. Also, Midokura uses network virtualization for a network infrastructure for cloud service providers and enterprises. Plexxi Inc., which features its Plexxi Control, a server-based software controller and Vello Systems which provides infrastructure for large-scale networks were highlighted in addition.

Further, Data Center Dynamics listed some “key players” in the SDN space. For example, Huawei wants to see “the agile data center.” SoftCOM is now being developed and has a commercial future. It is touted as targeting the mobile network. Also, NTT Communications (News - Alert) employs SDN in its data centers. It will expand these to cloud users, Len Padilla, NTT Communications vice president of Product Strategy commented. It will be providing an open-flow-based, enterprise cloud platform. SDN cloud customers will be able to select “which servers are on a segment of the network, and provision more network capacity when they need,” Padilla said. There are no customers yet for the new service.

In reviewing the IDC study, Data Center Dynamics predicts SDN and network function virtualization will be crucial for communications service providers’ (CSPs) strategies and telecom networking vendor’s product strategies in the near future.

“Networking data centers employing SDN-based solutions will be driven by the requirements for hyperscale networked data centers built by specialist cloud providers like Rackspace (News - Alert), Amazon, Google, and Microsoft,” the report concluded. “Additional demand for hyperscale networking data centers will be generated over time by CSPs like Verizon, ATT, BT (News - Alert), Orange Business, NTT DATA, SingTel, and Tata Communications.”