Preference in Digital Infrastructure to Fuel Demand in Network-as-a-Service Market

San Francisco, California, July 25, 2018 – Communications service providers (CSP) in the telecommunication business keep on using the delivery of various new value-added services as their significant trait in the immensely competitive global market, especially at times when the cost of standard availability have started to seep down. Automation of software-defined networking and network functions are increasingly shaping the essence of the upcoming entirely digital telecommunications sector and CSPs are putting forth their customers commercial-quality network-as-a-service (NaaS) items that deliver on-demand and fast activation of services, to provide most ideal experience to the customers.

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The rise in delivery of network-as-a-service items accounts for highly promising scope in future, along with enabling telecommunication firms to gain even more confidence and attention in developing nation for example, China and India, where there is a significant rise in telecommunication sector, with a notable digital transformation. Nevertheless, there is a shift in preference from manually used procedures to a full digital infrastructure, and the process seems to be lengthy. Owing to this, the network-as-a-service market is estimated to gain traction substantially in the forthcoming years.

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One of the major obstructions faced by the telecommunication communications service providers in the procedure of boosting the delivery of network-as-a-service items to their customers is the type of service-level agreements which compiles the firms as one, so as to deliver a consistent level of services during a particular time period. Due to the hindrance of similar service-level deals, CSPs are not able to turn the network framework which exists originally or is functional. In fact the aim is to have a better set of facilities for the customers. The overall situation is foreseen to alter notably in the upcoming years. The network-as-a-service products are likely to become among the most adopted deliverables by the telecommunications firms.

Network-as-a-Service Market Trends and Prospects by 2025

Global Network-as-a-service Market: Snapshot

Communications service providers (CSP) in the telecommunication industry continue to use the delivery of a number of new value-added services as their distinguishing trait in the highluy competitive global market, especially at a point when the cost of standard connectivity have begun to bottom out. Virtualization of network functions and software-defined networking are increasingly forming the crux of the futuristic completely digital telecommunications industry and CSPs are offering their consumers commercial-quality network-as-a-service (NaaS) products that deliver quick and on-demand activation of services, to deliver the consumer the best possible experience.

The increased delivery of network-as-a-service products holds immense promise in allowing telecommunications companies gain larger consumer confidence in developing economies such as India and China, where the telecommunications industry is rapidly witnessing the transformations to a completely digital one. However, as the switch from manually operated procedures to a completely digital infrastructure is a lengthy process, the scope for the network-as-a-service market to gain prominence is expected to expand in the next few years.

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One of the key challenges that telecommunication communications service providers will face in the process of increasing their delivery of network-as-a-service products to their consumers is the nature of service-level agreements that bind companies to deliver a persistent standard of services over a certain period of time. Owing to the restrictions of such service-level agreements, CSPs cannot upend network architecture that already exists or is operational even when the goal is an improved set of services for the consumer. The scenario is expected to change significantly over the next few years and network-as-a-service products are expected to become one of the most popular deliverables from telecommunications companies.

Global Network-as-a-Service Market: Overview

The business model designed for carrying out network services virtually over the Internet is known as network-as-a-service (NaaS) and is a pay-per-use service or can be monthly subscription-based. The requisites for creating an information technology (IT) network is an Internet connection, a computer, and access to the provider’s NaaS portal. This model looks attractive to new business owners as it saves them from spending money on network hardware and the staff it takes to manage a network in-house.

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NaaS is like utility, paid for just like water, heat, or electricity. NaaS is an old concept, however its positioning has been delayed by some of the same reasons that have affected other cloud computing services. NaaS offerings shift the risk and resource requirements related to updates, operation, backups, and infrastructure maintenance to third-party vendors or service providers.

Global Network-as-a-Service Market: Key Trends

In order to minimize cost among enterprises, many companies or end users are shifting towards an operational expenditure (OPEX) model and this is the major factor driving the market growth. With on-demand network services such as pay-per-use pricing model, network-as-a-service (NaaS) enables the client to pay only for the resources used. In addition, with the aid of cloud computing services, end users are adopting cloud-based networking services that provide on-demand network resources. The market is expected to grow over the forecast period as several telecom companies are investing information technologies to improve an omnichannel customer experience. However, the key challenges for NaaS are developing standards for network interoperability and portability.  

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Global Network-as-a-Service Market: Market Potential 

The market for NaaS has tremendous potential, hence companies are jumping on the bandwagon to extract maximum profit from it. In order to cater to the growing needs of today’s digital enterprises, Riverbed Technology, an SD-WAN company, has announced the Riverbed Service Delivery Platform, which is designed to enable service providers to deliver network-as-a-service, with increased flexibility and speed. With the aid of the Service Delivery Platform, service providers will be able to bring in  new services, make sure those services are delivered as planned, give their customers the ability to scale services up and down on demand, and expand into new areas such as IoT and Edge Compute.

Recently, Cincinnati Bell Business (CBB) and CBTS launched a fully managed network-as-a-service (NaaS) solution that is offering customers a scalable, simple method to offload complex tasks of expanding, maintaining, supporting, and securing a commercial network. Cincinnati Bell Business and CBTS through network-as-a-service allows customers to control the power to deliver a fully managed network with security, monitoring, cloud integration, switching, Wi-Fi, management, and SD-WAN. For equipment and support, customers are required to pay a single, predictable monthly price.

Global Network-as-a-Service Market: Regional Outlook

The global network-as-a-service market can be geographically segmented into North America, Asia Pacific, Europe, and Rest of the World. In 2015, North America was the leading regional market; however this region is expected to witness a decline in market share to some extent over the said period owing to the rising lucrativeness of Asia Pacific.

Asia Pacific is a promising regional market for NaaS and is projected to grow further over the forecast period. This region’s growth can be attributed to certain factors such as development activities in emerging economies such as India and China, which require efficient IT services and systems, coupled with sprawling broadband penetration and the emergence of local players.

Global Network-as-a-Service Market: Competitive Analysis

The global network-as-a-service market is still an emerging one. However, it is projected to grow tremendously during the forecast period. The competition is expected to get intense with the inclusion of innovations in technology, new vendors, and commercial partnerships.

The leading players operating in the market are Talari Networks, Cisco, Aerohive Networks, CloudGenix, HP, Intellipath, Netcraftsmen, Pertino, Silver Peak Systems, VeloCloud, Fatpipe Networks, Viptela, IBM, Akamai Technologies, Juniper Networks, Aryaka Networks, and VMware.

High Demand for Efficient Network-as-a-Service in Developing Economies

San Francisco, California, May 12, 2017: A new research report, titled “Network-as-a-Service Market – Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 – 2025,” by TMR Research provides a detailed overview of the market. The rising demand for virtualization of network functions and innovative value added services are anticipated to encourage the growth of the global network-as-a-service market in the next few years. The research study presents insights into the key dynamics of the market that are likely to accelerate the market’s growth in the near future. Moreover, a complete analysis of the competitive landscape has been provided in the study.

The adoption of network-as-a-service helps enterprises in minimizing cost, which is considered as a key factor projected to encourage the growth of the market in the coming years. In addition, the emergence of cloud computing technology is expected to create promising growth opportunities for the key players. The growing investments by several telecom companies in order to enhance their customer experience is likely to accelerate the overall growth of the network-as-a-service market in the forecast period.

On the flip side, the market is expected to face several barriers that are likely to curb the growth of the overall market in the coming years. Several concerns related to the portability and interoperability are anticipated to curtail the growth of the network-as-a-service market. Nevertheless, advancements in technology and the growing demand from several developing economies across the globe are projected to fuel the growth of the market in the near future.

In the last few years, a massive share of the global network-as-a-service market was held by North America. This region is estimated to continue its dominance throughout the forecast period. However, the rising promising opportunities in developing nations is predicted to encourage the growth of the Asia Pacific market in the near future. The increasing contribution from China and India and the growing demand for efficient IT services are projected to accelerate the growth of this region. Moreover, the increasing broadband penetration and the entry of new players are predicted to bolster Asia Pacific network-as-a-service market in the forecast period.

Some of the prominent players operating in the network-as-a-service market across the globe are Cisco, Fatpipe Networks, CloudGenix, Viptela, Pertino, Aerohive Networks, IBM, Juniper Networks, Silver Peak Systems, VeloCloud, Netcraftsmen, Talari Networks, Intellipath, VMware, Aryaka Networks, Akamai Technologies, and HP. This market is considered to be on the development stage at present. The increasing level of competition and the rising emphasis of leading players on the development of new products and innovations are likely to supplement the growth of the overall market in the coming few years.