Network As A Service: Hype Or Midmarket’s Hero?

There is a lot of hype around NaaS. Here is a look into the technology, its value for midmarket IT, as well as its challenges.

For decades, setting up computer networks was so tangible, so hands on, so on-premise — involving wiring, servers, switches, data closets, punch-down blocks, and other physical equipment and labor.

Currently, more IT solution providers are offering Network-as-a-Service solutions, which are cloud-based networking services.

NaaS Definition And Challenges

Solution providers increasingly offer a plethora of bundled services including cloud networking, security, remote network monitoring, among others.

This ongoing convergence of technologies offered by solution providers can pose a challenge for IT leaders to get a solid definition of what exactly comprises NaaS.

Research firm Gartner addressed this very issue. “There is much commercial hype in the industry around network as a service but with significant differences on what it means. Communication service providers that sell enterprise network services cannot neglect this trend, and need to build and differentiate their NaaS offerings,” Gartner summarized in its June 2024 report, Market Trend: CSP NaaS Offerings for Enterprise Networking.

There are other challenges with NaaS. As Cloudflare points out on its site, there may be compatibility issues with a NaaS vendor’s platform and an organization’s legacy systems. IT leaders should also be wary of vendor lock in, in the case of a provider’s service going down, or if they raise their prices, Cloudflare also cautions.

In a nutshell, NaaS is the delivery of networking services through the internet/cloud. Some of the biggest players in the space include large vendors like Cisco, Hewlett Packard Enterprise, and Cloudflare. There are also managed service providers that provide NaaS services. Some of them include Hyve Managed Hosting, Aryaka, and Alkira, to name a few.

Arguments For NaaS

One networking expert contends that NaaS is an IT game changer.

“Network as a Service (NaaS) is not just another IT trend; it's a fundamental reimagining of enterprise connectivity that's reshaping the digital landscape,” Rishit Lakhani, a solutions engineer at networking services platform provider Nile and an expert in enterprise networking, wrote in an article shared with MES Computing.

A key benefit of NaaS, Lakhani argues, is financial. NaaS “allows businesses to shift from unpredictable capital expenses (CapEx) to a subscription-based operational expense (OpEx) mode,” Lakhani wrote.

“NaaS reduces/eliminates capital expenditure (CapEx) since organizations don’t need to invest in network infrastructure, hardware, and maintenance. Instead, it operates on a subscription-based model, turning these costs into predictable operating expenses (OpEx). It also reduces the complexity of network management. IT teams can manage and monitor network (and network security) resources through a centralized platform, leading to fewer maintenance challenges and quicker troubleshooting,” said Klaus Schwegler, senior director of product marketing at SASE specialist Aryaka, in a statement to MES Computing.

NaaS is particularly beneficial for midmarket organizations, said William Collins, director of technical evangelism at on-demand network infrastructure vendor Alkira, in an emailed statement.

“Middle market organizations face unique challenges in growth and competition. Removing as much friction and overhead as possible from operations is key to success. This is a huge benefit of NaaS, in that you are paying for a service-based outcome that enables your technical teams to focus on how to move the business forward, and not necessarily how to keep the network running,” Collins said.

NaaS can also address skills gaps organizations may have when it comes to building and running networks.

"The reality is that not many organizations have the specialist skills in-house to build and operate their networks. Network as a Service (NaaS) effectively bridges this skills gap, allowing organizations to rent the services and network capabilities they need without having to deal with the complexities of designing, building, securing and managing network infrastructure in-house,” said Jake Madders, director and co-founder of Hyve Managed Hosting.

How NaaS Is Implemented

Several vendors detailed their approach to implementing NaaS solutions.

“Your network can be drawn on a design canvas and deployed in a single click,” Collins said. Organizations “still own and operate their network, but without the burden of managing any underlying infrastructure.”

Some providers bake security into their NaaS offering.

“Implementing NaaS through SD-WAN allows for efficient management of multiple branch and user locations. It provides centralized control with enhanced security, making it ideal for hybrid workforce organizations. Implementing NaaS through Unified SASE as a Service allows for efficient management of multiple branch and remote user locations, access to SaaS and cloud resources with integration of comprehensive security services, such as Next Generation Firewall (NGFW), Secure Web Gateway (SWG), Cloud Access Security Broker (CASB) and more. It provides centralized control, and comprehensive security, making it ideal for fully distributed organizations.,” Schwegler explained about Aryaka’s approach.

Hyve Managed Hosting offers “NaaS elements” including “VPNs to access the infrastructure, internet bandwidth, firewalls and load balancers to secure and run a reliable cloud platform,” Hyve’s Madders said.

Hype or Hero?

NaaS can offer several benefits for midmarket IT: cost savings, scalability and the flexibility to keep up with a frenetically evolving digital landscape with the increasing adoption of AI, the need for enterprise-level, hardened cybersecurity, and the continued move to SaaS apps.

However, as Gartner suggested, there is a lot of hype around NaaS. IT leaders would be advised to really do their research before moving to a NaaS solution and ensuring the solution is a fit for their organization’s needs.

“In an era where agility and innovation are paramount, NaaS offers a strategic pathway for businesses to stay ahead of the curve. As enterprises consider this transition, the key is to approach it thoughtfully—start by evaluating current network challenges and identifying where NaaS can provide the most immediate impact,” Lakhani advised.