Cloud service providers (CSPs) have been fervently pursuing revenue streams in network as a service (NaaS). The initial drive had stemmed from the growing popularity of cloud services and rise in use cases of cloud computing for enterprise as well as commercial applications. Worldwide, NaaS has entrenched itself in the broadening prospects of category of X as a service (XaaS). Rise in uptake of hybrid cloud services is a key trend spurring the growth of the network as a service (NaaS) market.
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Software-Defined WAN (SD-WAN) Gathering Traction
A massive push to demand in the network as a service (NaaS) market has come from the rising traction of software-defined WAN (SD-WAN). The growing role of NaaS in augmenting business productivity and agility with the focus of high user experience is a related trend. End users in the NaaS market have been appreciating the gains of reduced cost of IT. Further, the use of SD-WAN models has enabled end users of cloud services gain a high degree of application performance, particularly higher application quality of experience (QoEX). End users are offered a plenty of options in corporate data centers. All these gains contribute to new avenues in the NaaS market.
Advancements in virtualization technology are key to bolstering the prospects in the NaaS market. Several benefits of NaaS drive the demand. One of the key gains from the shift from CAPEX to OPEX. Other common benefits NaaS providers offer are scalability, bundled security, and flexibility. However, flexibility to adopt services from multi-vendor networks is easier said than done. To counter this and to circumvent the challenges, NaaS providers are looking to aim toward standardization of offering.
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A growing number of organizations notably new entrants to the NaaS market are targeting niche segments to gain a strong foothold. Further, some players are targeting mobile virtual network operator (MVNO) framework in emerging economies.