The Commercialization of sdn accelerates with an Acquisition Amount of about usd 10 Billion in a Year



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The Commercialization of SDN accelerates with an Acquisition Amount of about USD 10 Billion in a Year

— China Open Networking and SDN Conference 2013 to be Held in Beijing


The SDN market has been developing rapidly. Within merely one year, approximately 20 start-up SDN companies were acquired by well-known enterprises including Oracle, Cisco and VMware, with a total transaction amount of nearly USD 10 billion. At the China Open Networking and SDN Conference 2013 to be held in late August, top experts, scholars and manufacturers in the industry across the world will discuss about the capital changes in and development strategies about the market.
It’s an incredible era.
Changes are taking place with each passing minute in this era. A decade ago, IT practitioners gathering in the Silicon Valley were still worried about the bubble of the network economy, but we are now standing on one of the numerous nodes of the Internet covers the world, thinking about how to make the network simpler, wiser and more adaptable to this era changing from minute to minute.
The Internet itself is a revolution in the communication industry, but it is now renovating itself. The existing network hardware architecture has failed to meet the explosive growth in scale and need for long. As a more manageable and operational network architecture concept, SDN has long been popular among the academic area, but it seems that it has never been favored by the manufacturers. However, the operators and device suppliers across the world seemed to have changed their mind overnight since 2012 and have switched their attention to the attractive SDN, adding the commercialization of SDN onto their agenda.
In face of such a new concept technological industry, some tycoons with advantages in capital and monopoly believe that acquisition is obviously a shortcut in comparison with independent research and development: VM purchased Nicira with USD 1.26 billion; Oracle acquired Xsigo Systems, an SDN manufacturer; Cisco even took over five SDN-related enterprises, namely Insieme, Broadhop, Cariden, Meraki and Intucell. Recently, Intel announced on May 4th that it acquired Aepona, a network software company, following F5’acquisition of Aepona. Meanwhile, Contrail and Vyatta were taken over by Juniper and Brocade respectively. According to incomplete statistics, about twenty SDN companies of different scales were purchased during the past year, with a total amount of about USD 1 billion.
SDN companies have not only triggered the substantial interest of the tycoons but also attracted the attention of the capital market. On 11 May 2013, the American optical device and SDN manufacturer Cyan went public in the New York Stock Exchange, issuing 8 million new 11-dollar stocks, which indicated the rapid commercialization of the SDN market. At the same time, companies such as Intel and Dell have invested tens of millions of dollars in s companies like Big Switch Network. According to incomplete statistics, the number of risk investment projects related to SDN has increased by 50 times since 2007, with a capital of USD 454 million.
SDN has also been a focus in strategy-making of various manufacturers. In February 2013, Huawei released a mobile loading scheme based on SDN, and Intel’s Embedded Business Department said that its strategic focus in 2013 was SDN; ZTE indicated that it had undertaken researches on the commercialization of SDN for nearly two years. Meanwhile, the tycoons in the industry such as IBM, Cisco, Dell, Microsoft, NEC and Red Hat have jointly established the Open Daylight SDN project to build up a shared supplier-supporting framework and accelerate the deployment and innovation of SDN. The establishment of the open source project marks a major step towards the unification and cooperation in the emerging market of SDN.
The SDN market is like a battlefield, with the information about the industry cropping up and technological innovation taking place with each passing day. Device suppliers, operators, scholars, experts, enterprises and customers are all in an urgent need of a large authoritative exchange platform of thoughts, technologies and market information. In the early stage of the commercialization of SDN in 2012, the First China SDN and Open Network Conference marked a good beginning. As the autumn approaches, a stronger wave of SDN commercialization’s coming, with the Second China Open Networking and SDN Conference 2013 to be held in Beijing on August 29-30 2013, which will provide manufacturers, scholars and customers a most professional and authoritative platform. The topics covered include the latest information about the market capital changes and the new technologies and achievements in SDN.
The conference will be jointly held by the China SDN and Open Network Commission, Beijing Municipal Engineering Research Center of Key Technology and Testing of Next Generation Network as well as the Beijing Internet Institute. Moreover, the immense potential value of the Chinese market and Chinese government’s great support for and attention to the building of Chinese next generation network at the conference attracts the attention of a large number of authoritative international organizations and the participation of famous manufacturers at home and aboard. Meanwhile, the conference has won substantial support from international authoritative institutions such as ONF, IETF and IPv6 Forum, and Dan Pitt, the chief executive officer of ONF, has promised to attend the conference and fully engage himself in it. The member organizations of the China SDN and Open Networking Commission, together with three major Chinese operators – China Telecom, China Unicom and China Mobile, will also attend the conference.
In order to facilitate the communication among the attendees, a elite forum will be held on the morning of the second day (August 30) in addition to the keynote speeches given by relevant governmental departments, international institutions like ONF, prestigious universities and the representatives of well-known operators and manufacturers on the first day (August 29). The forum will provide the participants a high-end dialogue platform to have an in-depth discussion on the development path of the global open network. On the afternoon of the second day, technological experts from ONF will give trainings about industrial replacement and technical standards. Meanwhile, the SDN test and the Showcase Zone will be open throughout the conference, which will also mark the debut of the SDN in China.

With the upcoming SDN commercialization driven by the market demand, major enterprises have been competing to land on the Chinese market. In such a technological revolution which entails early seizure of the opportunity to monopolize the market, only those who grasp the right time will succeed, and those who lag behind for merely one minute would miss the chance for ever.



For its high controllability over network resources, SDN will once more arouse great and constant attention from top operators, internet companies, IDC enterprises, over one hundred device suppliers at home and abroad as well as about one thousand visitors in the world. At the China Open Networking and SDN Conference 2013 (August 29-30, 2013), we will witness the recurring commercial opportunities in the Next Generation network and the overwhelming trend of the SDN commercialization together. Official website of the Conference: http://www.chinasdn.org/2013

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