NaaS is a virtual networking business model that refers to the delivery of networking resources, services, and applications over the Internet. Clients include individual businesses and enterprises that compensate the service provider on a pay-per-use basis. NaaS (or cloud-based electronic networking) has emerged as a new way to build cost-effective, dynamic, and flexible business networks that addresses the challenges of a rapidly evolving enterprise IT landscape. Cloud-based networking systems have moved traditional network functions and services (such as connectivity, management and control, security, and other network service functions) into the cloud based on network virtualization principles. This technology eliminates the need for capital investment (on the part of clients) to purchase network infrastructure. NaaS offers on-demand network services based on business requirements and helps in optimal bandwidth utilization with minimal downtime. The technology offers many of the benefits of other cloud-based IT services, such as rapid deployment, built-in scalability, no upfront costs, easy administration, and improved accessibility and mobility.
Technavio’s analysts forecast the network-as-a-service market to grow at a CAGR of 35.76% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global network-as-a-service marke for 2016-2020. To calculate the market size, the report considers the revenue generated from cloud WAN services, such as business-class Internet, WAN optimization, security, and application policy control.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Network as a Service (NaaS) Market 2016-2020
Technavio recognizes the following companies as the key players in the global network as a service (NaaS) market: Cisco, IBM, Juniper Networks, and VMware.
Other Prominent Vendors in the market are: Aerohive Networks, Akamai Technologies, Aryaka Networks, CloudGenix, Fatpipe Networks, HP, Intellipath, Netcraftsmen, Pertino, Silver Peak Systems, Talari Networks, VeloCloud, and Viptela.
Commenting on the report, an analyst from Technavio’s team said: “Increasing adoption of software-defined networking will aid in market growth during the forecast period. SDN is a strong network paradigm designed to cater to overarching issues such as the increasing demand for network speed, scalability, and resilience. It is a network architecture where software, such as applications, content, and services, that are stored or executed in data centers, interacts directly and dynamically with network infrastructure.”
According to the report, shift from CAPEX to OPEX model will spur market growth until the end of 2020. Industries worldwide are shifting from the CAPEX to the OPEX model to harvest cost efficiencies. This shift has boosted the adoption of cloud-based networking services. NaaS provides on-demand network services with pay-per-use pricing model, wherein clients pay only for the resources used.
Further, the report states that challenges like data security and privacy concerns will hinder market growth. Data security and privacy concerns represent persistent issues for organizations because business data is critical. Storing data and important files on services offered by external service providers is a risky proposition, even though cloud service providers offer the best security standards and industry certifications. The use of cloud-powered technologies exposes business data to the service provider, which opens up fresh security challenges.
Cisco, IBM, Juniper Networks, VMware, Aerohive Networks, Akamai Technologies, Aryaka Networks, CloudGenix, Fatpipe Networks, HP, Intellipath, Netcraftsmen, Pertino, Silver Peak Systems, Talari Networks, VeloCloud, and Viptela.
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