Expectations for Network as a Service (NaaS) Technology

Network as a Service (NaaS) technology provides network hardware, software, and operation/maintenance services as an operating expense rather than traditional upfront fees. Like other cloud services, NaaS is managed by the service provider and delivered for a fixed fee.

Jacob Martin, a software engineer at IT infrastructure automation company Spacelift, pointed out that NaaS is the logical result of many business processes moving to the cloud. NaaS replaces VPNs, MLPS connections, traditional network configurations and several types of enterprise internal hardware, such as load balancing and firewall devices. It has a significant impact on enterprise network architecture.

Essentially, NaaS is a network subscription service. "Enterprise customers often think of NaaS as being similar to other cloud-based services, but in reality, NaaS is far less standardized than SaaS, and decisions about how to use NaaS are far more complex," explains Nick Nagy, principal consultant at ISG, a global technology research and advisory firm. The added complexity is driven primarily by the need for on-premises equipment. "Enterprises must decide how to adopt the various elements of NaaS to meet their business objectives, and this often comes down to an OpEx vs. CapEx decision, subject to tax implications."

Multiple benefits

For organizations that find a subscription approach to enterprise networking attractive, NaaS offers a turnkey solution that typically includes equipment, software, orchestration and management, with a fixed recurring fee and services tailored to meet the adopter's specific business requirements. "This enables enterprise customers to smooth out the financial and operational bumps that come with ongoing technology refreshes," Nagy said.

Robert Blumofe, executive vice president and CTO of Akamai Technologies, a content delivery network, network security and cloud services company, said that for the vast majority of enterprises, no other model really makes sense. "How many enterprises really have the expertise required to build and operate their own network?" he asked? Blumofe added that for many enterprises, NaaS is by far the better option. "The scope of traditional private network services is shrinking, while the scope of new access-based models is expanding."

Blumofe observed that enterprises have traditionally used private networks to interconnect their offices and data centers. "Looking backward, that type of private network really only makes sense on the back end as a way to connect private and public clouds," he said. "For that use case, NaaS is really a great solution."

Blumofe noted that office buildings, on the other hand, should be treated like private cafés, with high-quality Wi-Fi connecting customers directly to the internet. "After all, what's the difference between working at home, on the road, and in the office?" he asked. Workers, no matter where they are, need access to their necessary applications. "This new form of [technology] is essentially an overlay network that provides zero-trust application access as a service."

The flexibility and scalability of NaaS is unmatched, Martin said. "It's tailored to your needs because changes are made in software rather than hardware, and this customization is done on demand," he explained.

Potential pitfalls of NaaS

Disadvantages of NaaS include a lack of flexibility from vendors in terms of portability and long-term commitments. "There may also be issues with legacy systems, such as software or hardware that is incompatible with the solution," Nagy warned.

Martin agrees, noting that most NaaS compatibility issues are related to infrastructure, such as older hardware or on-premises applications that are still in use. "Coincidentally, in many enterprises, some basic processes or applications are run in-house in data centers rather than in the cloud," he says. "So, migrating to a NaaS model can be a bit challenging, although there are certainly services that can make it easier."

Because NaaS connections are typically established using "best effort" public broadband, the service is only available where there is a broadband internet connection, cautions Ajay Pandya, director of product management at cloud networking platform provider Masergy. "Performance may be limited by the last-mile connection speed," he says.

The potential loss of control is a concern for some potential adopters. "When outsourcing their network services, some customers have concerns about the responsiveness of the service and their ability to control network resources," Pandya said. In response, co-managed NaaS solutions have arrived, allowing customers to share the work of managing their network, bandwidth and firewall policies.

Nagy added that some large multinational enterprises may find NaaS unsuitable due to tax and accounting issues.

Future Outlook

Since NAAS can be easily accessed from anywhere and on any device, it is expected to become an indispensable tool in the remote/hybrid work model in the coming years. "As long as you have internet access and login credentials, you can work from anywhere," Martin noted. "Vendors offer both network and security services, which further strengthens the integration between network and cybersecurity."

The best way to get started with NaaS is to scope your service portfolio and your business goals, Nagy said. "Then determine the preferred financial model, i.e. CAPEX versus OPEX."