Open Networking Market Gains Importance as AI, Cloud and Edge Infrastructure Drive Demand for Flexible Networks

August 26, 2026

The global open networking market is gaining strategic importance as enterprises, cloud providers and telecommunications operators seek more flexible, programmable and interoperable network infrastructure to support cloud computing, artificial intelligence and distributed workloads. A market analysis by Next Move Strategy Consulting identifies cloud adoption, healthcare digitalization and the broader shift toward digital business as major growth factors, while pointing to rising security risks as a key restraint. The firm’s published study covers the market through 2030, although the publicly available report page currently displays placeholders rather than a verifiable market-size figure, forecast value or CAGR.

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Market Growth and Outlook

Open networking refers broadly to network architectures that separate hardware, software and control functions, enabling organizations to use programmable technologies, open interfaces and more modular infrastructure. The approach is closely associated with software-defined networking (SDN), disaggregated networking and open-source network operating systems.

Next Move Strategy Consulting’s study uses 2024 as the base year and 2025–2030 as the forecast period. It evaluates the sector by hardware, software and services; on-premises and cloud deployment; small and medium enterprises and large enterprises; and three SDN categories: open SDN, SDN via API and SDN via overlay. End-user segments include data centers, service providers, enterprises, banking and financial services, manufacturing, retail, healthcare, education, telecommunications, cloud service providers, government and defense, among others.

The absence of a publicly disclosed numerical forecast on the current report page makes it preferable to focus the outlook on the structural forces identified by the study rather than introduce an unverified market-size estimate.

Key Market Drivers

Cloud infrastructure expansion is a central market driver. Open networking can provide organizations with greater flexibility in selecting networking hardware and software while supporting scalable architectures for increasingly distributed workloads. Next Move Strategy Consulting specifically identifies cloud adoption as a major source of market growth.

The scale of cloud and AI infrastructure investment illustrates the opportunity. In January 2025, Amazon Web Services announced plans to invest at least USD 11 billion in Georgia to expand infrastructure supporting cloud computing and artificial intelligence. Such large-scale deployments increase demand for high-performance, adaptable network infrastructure inside and between data centers.

Digitalization across industries is another driver. Organizations increasingly depend on distributed applications, analytics and connected services, requiring networking systems that can be configured and automated more efficiently. Next Move Strategy Consulting cites the growing cost and scale of digital transformation as a factor supporting demand for advanced networking.

Healthcare is also contributing to demand. As hospitals and health systems expand electronic records, connected devices and digital services, the underlying network must accommodate growing volumes of sensitive information while maintaining interoperability and resilience. Next Move Strategy Consulting identifies the expansion of healthcare and digital health technologies as another market catalyst.

Emerging Market Trends

One of the most notable developments is the continued maturation of open-source network operating systems. The Linux Foundation’s SONiC ecosystem reported in 2025 that the platform was advancing support for AI workloads, enterprise capabilities and enhanced telemetry. In July 2026, the SONiC Foundation announced additional members from AI infrastructure, cloud networking and enterprise environments, describing continued adoption of open, vendor-neutral networking for AI and cloud infrastructure.

AI-native networking is becoming increasingly significant. Large AI clusters require high-throughput, low-latency communications and detailed telemetry, increasing the value of programmable network infrastructure. The Linux Foundation has highlighted the use of open network operating systems in AI-cluster fabrics, alongside developments in open programmable infrastructure designed to support increasingly heterogeneous computing environments.

Another trend is network programmability and disaggregation. The Open Networking Foundation documented how software-defined networking helped drive the separation of networking devices from control software, while newer programmable-data-plane technologies extend the ability to customize network behavior.

Edge computing represents another opportunity identified by Next Move Strategy Consulting. Processing data closer to where it is generated can reduce latency and support applications such as real-time analytics and smart-city services, increasing the need for adaptable networking at distributed locations.

At the same time, cybersecurity remains a major consideration. The ability to customize open architectures can introduce additional configuration and software-security challenges, making secure deployment, lifecycle management, identity controls and observability increasingly important. Next Move Strategy Consulting lists increased security risk as a key restraint.

Regional Analysis

North America currently dominates the open networking market, according to Next Move Strategy Consulting, with the region benefiting from strong cloud investment and expanding digital infrastructure. The report specifically points to major U.S. cloud and AI infrastructure investments as evidence of the growing requirement for scalable networking environments.

Asia-Pacific is recording steady growth, supported by expanding financial services, telecommunications and digital business activity. Next Move Strategy Consulting identifies China’s financial sector and India’s large telecommunications base as factors supporting demand for software-defined and flexible networking systems.

Europe also remains relevant as service providers and enterprises adopt programmable, cloud-native networking architectures. ETSI’s TeraFlowSDN initiative, for example, is developing a cloud-native SDN controller designed for future networks beyond 5G and promotes programmable, open and disaggregated networking ecosystems.

Industry and Competitive Landscape

The competitive landscape identified by Next Move Strategy Consulting includes Cisco Systems, Juniper Networks, Dell Technologies, Hewlett Packard Enterprise, Extreme Networks, Mphasis, VMware, Kyndryl, Garland Technology, Pica8, Broadcom, Nokia, Arista Networks, Ericsson and Nutanix. The report notes product launches and acquisitions among the strategies being used across the sector.

Recent industry developments demonstrate how competition is increasingly linked to open architectures and AI infrastructure. The report cites Juniper Networks’ 2024 Ops4AI Lab and validated designs for AI workloads, Cisco’s acquisition of Isovalent to strengthen networking and security capabilities in multicloud environments, and Dell’s work on open, cloud-native technology for telecommunications providers.

“Open networking is becoming increasingly relevant as organizations balance the performance requirements of AI and cloud workloads with the need for greater flexibility, interoperability and control. The next phase of adoption will depend not only on open architectures, but also on secure operations, automation and the ability to manage increasingly distributed infrastructure,” said a spokesperson at Next Move Strategy Consulting.

Market Report Overview

The Open Networking Market report from Next Move Strategy Consulting analyzes the industry for 2024–2030, including the 2025–2030 forecast period. It examines market segmentation by component, deployment, organization size, SDN type and end user; regional markets across North America, Europe, Asia-Pacific and the rest of the world; as well as drivers, restraints, opportunities and competitive dynamics. The study also includes SWOT, Porter’s Five Forces and value-chain analysis.

About Next Move Strategy Consulting

Next Move Strategy Consulting is a market research and consulting company providing market intelligence, industry analysis, competitive insights, and strategic research across a wide range of industries and geographic markets.

As AI, cloud computing and edge applications place new demands on network performance and flexibility, open networking is becoming an increasingly relevant architecture for enterprises, service providers and data-center operators. Businesses, investors, network-equipment manufacturers, software developers and policymakers can monitor the market’s evolution through 2030 by tracking developments in open-source networking, SDN, network programmability, AI infrastructure, cybersecurity and edge computing.