What Is Network as a Service (NaaS) And How Does It Work?

Caroline MacDonald
4 min readSep 30, 2023

Network as a Service (NaaS) is forecast to grow 8x in the next six years.

Photo by NASA on Unsplash

What Is Network as a Service?

Network as a Service (NaaS) is a cloud service model that is rapidly transforming enterprise networking.

With NaaS, businesses benefit from on-demand networking capabilities without having to build and manage networks internally.

Instead of purchasing routers, switches, and other networking gear, companies access these resources virtually through the cloud. This allows organizations to flexibly scale their networks up or down based on their real-time business requirements.

As more organizations look to reduce their IT infrastructure costs, NaaS provides an OpEx-based alternative to traditional network ownership.

How Does Network as a Service Work?

NaaS allows organizations to utilize networking components like virtual routers, firewalls, and SD-WAN appliances via the cloud. Rather than installing on-site hardware, businesses can configure, manage, and optimize virtual network devices through a simple self-service portal.

This means that with on-demand provisioning, networks can be set up and changed dynamically as needed. The NaaS provider maintains the underlying physical infrastructure including servers, switches, and data centers that is shared between clients to deliver the network services.

One of the major benefits is that the service provider handles all the maintenance, uptime guarantees, and infrastructure security leaving the business owner with one less thing to worry about.

With NaaS, bandwidth and network capabilities can be scaled up or down almost instantly. For example, if more capacity is needed for a seasonal spike in traffic, it can be deployed immediately. Similarly, capacity can be reduced if no longer required.

This level of flexibility is just not possible when businesses have to purchase and install traditional network equipment. NaaS transforms networks into flexible and consumption-based assets.

What Are the Benefits of Network as a Service?

NaaS offers several advantages over legacy network ownership models:

Agility and Flexibility

The on-demand nature of NaaS allows businesses much more freedom in deploying and adjusting their networks. Services can be spun up in hours or minutes compared to the weeks or months it often takes to procure and install hardware.

This accelerates time-to-market for new apps and branch offices. Networks can also be resized dynamically based on changing needs.

Lower Costs

NaaS eliminates large upfront capital expenditures on network equipment purchase and installation. Instead, businesses pay a more manageable operating expense monthly or based on usage. Without assets depreciating over time, the cost structure is far more flexible.

Scalability

Network capacity, performance, security, and capability can all be provisioned up or down as required. This allows the network to keep pace with business growth and seasonal variations. Large overprovisioning to accommodate peaks is avoided.

Advanced Capabilities

Businesses can leverage state-of-the-art networking features without needing to continually update equipment. New technologies like SD-WAN, 5G, and advanced security are included as they become available.

Operational Efficiency

With NaaS, businesses offload network management overhead to the service provider. Their experts handle maintenance, troubleshooting, and optimizing network performance. This frees up IT teams to focus on strategic initiatives rather than network plumbing.

Who Uses NaaS?

NaaS is ideal for organizations that want enterprise-grade networking capabilities without the complexity of managing it themselves.

Some examples include:

Startups

For startups whose goal is rapid growth, NaaS provides ready access to enterprise networking that can scale up seamlessly. The cost model is also friendlier for small companies.

Businesses With Variable Bandwidth Needs

Retailers, media companies and other businesses with significant seasonal fluctuations can scale their network capacity up or down as needed instead of overprovisioning.

Temporary Networks

Companies can quickly set up network services for temporary needs like one-time events, conferences, or branch office expansions.

New Branch Offices

Organizations opening new branch offices nationally or globally can use NaaS to deploy network services much faster than legacy processes.

The Future of NaaS

NaaS is poised for significant growth as more organizations recognize its benefits over traditional network infrastructure models.

Here are some trends to expect:

Increasing Enterprise Adoption

Larger companies and mission-critical deployments will become more comfortable using NaaS as providers establish stronger track records on security and reliability.

Emerging Technologies

NaaS will incorporate cutting-edge technologies like SD-WAN, 5G, and edge computing as they mature.

Integration With Other Cloud Services

NaaS will mesh more tightly with complementary cloud services like UCaaS, CCaaS, and SASE. This will improve end-to-end orchestration.

Vertical and Use Case Specialization

Providers will tailor NaaS offerings to specific industry verticals and use cases with customized capabilities to provide strategic advantages.

As cloud consumption models gain further enterprise acceptance, NaaS will play a key role in the future of enterprise networking. Its flexibility and scalability provide the agility that digital transformation demands.

Capital Expense to Variable Operating Cost

For most organizations, NaaS shifts networks from a capital expense to a variable operating cost while delivering advanced capabilities.

This represents a win-win for both providers and business users of network services.

NaaS Will Transform Networking

NaaS offers organizations a flexible and scalable alternative to owning and managing a physical network infrastructure. By delivering networking as an on-demand cloud service, companies can reduce costs while accessing flexible advanced networking capabilities.

As more workloads migrate to the cloud, NaaS will become a critical component empowering the network transformations that need to follow.

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Caroline MacDonald