Network-as-a-Service Market to Partake Significant Development During 2017 - 2025
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.
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