Networking as a Service has seen a lot of growth in the past years due to the adoption of cloud services, software-defined networking, and the development of new data center infrastructure. Check out what the future of NaaS looks like. Spoiler—things are looking good!
Networking as a Service (NaaS) has lagged in getting into the “as a service” market. But now that it is here, it is for sure getting a lot of attention. Provisioning network services virtually has proved to be an excellent benefit for enterprise owners.
Growth Drivers for NaaS
It is important to acknowledge the factors that have driven the growth of NaaS adoption. The first factor—the adoption of cloud services. After all, it is integral to have the right cloud-deployed alongside your business if you want to make the most out of networking services. Software-defined networking has also played a role as it helps make high-capacity networks cheaper and potentially more efficient. Lastly, the development of new data center infrastructure has made its fair share of contributions, too.
In relation to the factors above, the Network as a Service market is set to grow manifold in the years to come. The compounded annual growth rate for the market is said to be 38.3% between the forecast period of 2018-2023. Expanding at this given rate, NaaS is said to achieve a market value worth $21.7 billion by 2023.
Regional Market Share
North America currently holds the largest market share. This is evident because of the region's early adoption of advanced technologies like cloud and edge computing. In contrast, the market in the Asia Pacific region is set to expand exponentially in 2020 itself. Activities in developing economies like China and India are contributing significantly to IT services requirements.
Industry Adoption of NaaS
Networking as a Service is taken by small and medium enterprises alike. Be it new or old ones trying to keep operations afloat in the ever-changing business world, NaaS has something for all. The service significantly cuts down on personnel-hours and the cost of training and skill development of networking staff on site.
Certain industry sectors are rapidly taking to Network as a Service. The industries leading this trend include both telecom and IT, as their operations expand far and wide globally. Other industries in tow are banking and finance, automotive and manufacturing, along with retail and e-commerce.
NaaS For Service Providers
NaaS is also advantageous to cloud service providers as, by including it as an offering, they increase their revenue streams and time-to-market efficiency. Cloud service providers enhance their flexibility by incorporating virtualization and automation in their service offerings. Making NaaS a part of their solutions helps them better cater to the demands of modern enterprise customers.
Are you making the most of NaaS?
A service approach to networking is a forward solution for businesses looking to get ahead in the game. Undergoing a digital and cloud transformation by adopting this service can ensure improved quality of service and reduced cost of business operations for many organizations.
Here at VEXXHOST, we provide OpenStack based cloud services and solutions. If you are operating an OpenStack cloud without making adequate use of networking service, reach out to us! OpenStack Neutron is an SDN networking project focused on delivering Networking as a Service in virtual compute environments. With the seamless integration between OpenStack projects, you can customize your cloud experience for business success.