There seems to be a flurry of Telcos launching their version of NaaS (Network as a Service) these days, all appealing to the “pick me” aspect of their campaign. Almost every organisation has a “network need”, and how they choose to tackle that is usually based on their organisation structure and long-term goals.
What is NaaS?
Network as a Service (NaaS) is a cloud-based model where network services are delivered over the internet on a subscription or pay-as-you-go basis. Instead of organisations building and maintaining their own physical network infrastructure, NaaS providers offer virtualised network resources, such as bandwidth, routing, firewalls, VPNs, and load balancing, managed through a centralised platform. It’s similar to Software as a Service (SaaS) but for networking, providing scalable, flexible, and on-demand network capabilities, such as customers accessing networking functions via web portals or APIs, and then paying for what they use.
Why is NaaS Becoming Popular?
NaaS eliminates the need for investments in hardware and infrastructure. Organisations pay only for what they use, reducing capital expenditure and shifting to usually predictable operational costs. NaaS takes care of the maintenance and allows businesses to scale network resources quickly up or down based on demand, making it ideal for dynamic workloads, remote work, or rapid growth. It works well with cloud and hybrid systems, making it easy to connect across different locations. NaaS provides built-in security like encryption and threat detection, helping businesses meet rules without building everything themselves. Plus, it supports new tech like IoT, 5G, and fast networks, and lets companies expand globally without needing their own physical networks.
NaaS is increasingly paired with SD-WAN to optimise performance for distributed workforces, and its market is projected to grow significantly, with estimates suggesting the global NaaS market in 2024 totalled US$24bn, in 2025 it will be US$32.5bn and by 2032 it is projected to be US$162.4bn (CAGR 25.8%). It is an impressive growth rate, and one where many vendors and network operators will scramble to be. Interestingly it is the LAN as a Service segment that is anticipated to record the highest CAGR, due to increasing demand for on-demand ports and Wi-Fi hotspots.
Current Models and the Alternatives to NaaS
Without NaaS, organisations either build and run their own networks, outsource management, stick with telco/MPLS (Multiprotocol Label Switching) contracts, or set up private software-defined networks. Each option offers different trade-offs in cost, control, flexibility, and required expertise. Almost every organisation has a “network need”, so they would already be operating in some fashion with at least one or two of the networking models, based on historical investments and in-house expertise.
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Medium Cost / Medium Control |
High Cost / High Control |
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Use an MSP For most companies using a managed network services model, it’s about focusing IT resources elsewhere, scaling rapidly, and ensuring consistency or compliance across complex or distributed operations.
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Own Network (On-Premises) Major tech/cloud, banking, telco, government, and multinational companies tend to build and manage their own network infrastructure for control, security, and performance. Smaller firms increasingly use cloud, but large organisations still rely on private management for mission-critical networks. |
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Partner with a Telco This provides reliability and service-level guarantees but may have less flexibility and slower deployment times than NaaS. |
Use VNI in Private Cloud/DC Companies using virtual networking in private cloud/data centers include almost all large/enterprise organisations, and some advanced mid-tier too, who operate their own modern data centers or private clouds. Virtually every company running VMware-based private cloud, OpenStack, or an enterprise data center has adopted virtual networking technologies today.
This brings some cloud/network flexibility, but requires significant upfront investment and specialized skills. |
For example, Devon County Council awarded a MPLS contract for a Wide Area Network to GCI Network Solutions in June 2025, worth £12m. E2E Technologies acts as a Network MSP offering a variety of connectivity options, ranging from simple business broadband to dedicated internet access solutions and managed MPLS services.
Market Disruption
NaaS providers are projected to disrupt and take market share from several traditional segments such as network hardware, managed services, older WAN providers, and the security appliance markets. The security appliance market encompasses the hardware and software solutions used to protect computer networks from unauthorised access and cyber threats, and includes devices like firewalls, intrusion detection systems, and VPNs.
It is not all doom and gloom for vendors and distributors operating in those markets forecasted to be disrupted, as global emerging markets will still have a “network need” and will meet that need in any of the networking models, based on their geographical and economical situation.
NaaS may not be right for Everyone
Selecting a NaaS provider needs to be carefully considered. The major reasons for a company taking its time to consider which NaaS vendor to choose include being locked into contracts, weighing up cost of ownership, and control, especially regarding data sovereignty, data security and integrating NaaS into or switching over to existing network models.
Choosing the wrong NaaS partner might entail in organisations finding it costly or complex to switch out or switch over instantly. Sometimes like a bad marriage, the dependence on a NaaS partner makes it difficult to leave. Or worse, there is deception at the beginning, where unclear pricing models and hidden fees lead to unexpected costs if not properly understood and managed.
NaaS solutions rely on the provider’s infrastructure and configurations, but the customer still has responsibility for configuring their network access, security policies, and user permissions within the NaaS environment. Improperly configured access controls, like overly permissive firewall rules or weak authentication, can create vulnerabilities. Once sensitive data passes through third-party networks and is exposed, it is not so private anymore, and the repercussions to the owner can be catastrophic.
Then there are the performance issues to consider. Too many tenants can produce possible network bottlenecks, and performance issues are tied to the quality of the user’s internet connection, which may have unpredictable latency that was not scoped out at the outset.
With any aaS (as a Service) it is always best to do a TCO (total cost of ownership) analysis before decisions are made. Long-term operational costs may exceed one-time investments in owned infrastructure, especially for stable, unchanging needs.
How does one choose whom to NaaS with? Well, buyer beware, but when and if any organisation decides to opt for a NaaS model, or some hybrid model with NaaS in it, hopefully they choose a reputable provider with a robust security posture.
This article first appeared in UC Advanced magazine issue #19
