New York, Aug. 16, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Network as a Service Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06483977/?utm_source=GNW
Network-as-a-Service (NaaS) offers companies greater flexibility and even performance gains in their network infrastructure. With on-demand purchasing, companies can be more cost-conscious and pay only for the networking services they need. Network-as-a-Service (NaaS) can also enable companies that want greater flexibility in provisioning without having to rearchitect networks or redo contracts from the ground up.
Key Highlights
One of the major factors driving the growth of the network-as-a-service (Naas) industry is an increase in new data center infrastructures worldwide. The increased adoption and implementation of the cloud for data storage and the introduction of Big Data analytics, as well as virtualization in the data center for workload mobility, have resulted in inefficient resource utilization, increased availability, and reduced overall costs, as well as high reliability and security for mission-critical business applications. The market is further influenced by the rising need for subscription (pay-per-use) business models in network virtualization, cloud computing, software-defined networking (SDN), and the increased use of cloud services for large and small businesses.
Network-as-a-Service (NaaS) offers companies greater flexibility and even performance gains in their network infrastructure. With on-demand purchasing, companies can be more cost-conscious and pay only for the networking services they need. Network-as-a-Service (NaaS) can also enable companies that want greater flexibility in provisioning without having to rearchitect networks or redo contracts from the ground up.
NaaS offers a turnkey solution that often includes equipment, software, orchestration, and management at a fixed recurring fee. Services are tailored to match the adopter’s specific business requirements for enterprises with an interesting subscription approach to enterprise networking. This allows the business customer to level out ongoing technology upgrades’ financial and operational peaks and valleys.
Although the NaaS provides excellent benefits, the specific challenges, like reliability concerns, may obstruct the market’s growth over the forecast period. The process of hiring a third-party networking infrastructure vendor to host critical business infrastructure involves the belief that the providers’ business may endure the relationship with them. In case of any failure by the providers to sustain the competition in the market, the enterprises relying upon them may have to entirely replace critical pieces of infrastructure, without which it is not possible to conduct business.?
Since the outbreak of COVID-19, the demand for cloud-based solutions has seen significant growth, owing to remote working models being adopted by enterprises; however, various industries such as retail, manufacturing, BFSI, and others have seen a significant slump in their revenues during 2020. With the growing remote working model, companies are increasing investments in cloud-based analytics and assurance, edge computing, and AI-powered networking technologies, which are expected to boost the NaaS market.
Network as a Service Market Trends
Increased Adoption of Cloud Services among Enterprises to Drive the Market
The demand for cloud-based solutions is surging due to the growing application of the technology and consumer propensity towards the cloud, as this technology allows the user to access the data from remote locations. The increasing realization among companies about the importance of saving money and resources by moving their data to the cloud rather than building and maintaining on-premise infrastructure is driving the demand for cloud-based solutions among enterprises.
Owing to these benefits, large enterprises and SMEs increasingly adopt cloud-based solutions. Over the next few years, cloud computing and virtualization will be able to save the setup cost of software by dividing it, ultimately leading to decreasing the use of hardware.
According to the Thales group, as of 2022, over 60% of all corporate data is stored in the cloud. As businesses progressively move their resources into cloud environments to enhance security, dependability, and business agility, this proportion hit 30% in 2015 and has since continued to increase.
These factors create a massive growth opportunity for the market-studied vendors to expand their offerings in the coming years. The growing adoption of cloud computing among enterprises also broadens the market studied scope. For instance, India-based market vendor, Druva Inc., reported that many companies primarily target enterprise data due to a large amount of unstructured data. The company also said that this data claim accounts for over 80% of the data stored in enterprise storage systems.
According to the CISCO Global Cloud Index, it is estimated that, by 2021, 94% of all workloads and computing instances are likely to be processed by cloud data centers, as against only 6% by traditional data centers. This points to the global potential for future cloud-based deployment of contact centers.
Critical sectors, like banking, are expected to adopt cloud-based deployment of services increasingly. This is due to the IT sector’s continuing quest for optimized infrastructure and the ability of solution builders to source application and infrastructure components from multiple providers to construct a hybrid cloud-based solution. Thereby augmenting the market studied growth.
North America to Occupy Significant Market Share
The United States is a developed economy with a significant inclination towards implementing and accepting advanced technology, the development of network automation, and the surge in cloud-based services, thereby contributing to the Network as a Service (NaaS) market. Over the next five-plus years, most IT teams would likely, increasingly adopt NaaS as suppliers deliver hybrid offerings that include software, cloud intelligence, and the option to manage on-premises hardware.
Substantial growth in connected and mobile devices spikes the demand for enhanced network services. Since the United States always remained at the forefront of technology adoption, the region witnessed the maximum adoption of connected devices.
The emergence of virtualized environments, such as the cloud, software-defined networks (SDN), and virtual network functions (VNF) has made infrastructure on-demand possible. With various network service providers (NSPs) in the country, it is not easy for enterprises to design and buy network connectivity. It can be a highly manual and fragmented process, which is not conducive for businesses that need to move at software speed in a digital trend.
The market for NaaS in Canada is growing mainly due to new product roll-outs, acquisitions, mergers, and partnerships that are shaping the market landscape in North America overall. There is a rise in malicious cyber activity targeting information technology (IT) service providers, causing a leak of client information. Due to rising network infiltration, the Canadian Centre for Cyber Security has guided businesses. This has, in turn, led to companies getting very selective while choosing their respective network service providers.
With increasing automation and connected device deployment, market demand is expected to increase significantly. Also, the NaaS model benefits small businesses because they can offload day-to-day equipment maintenance and focus on tasks that they do best, such as customer service. With a large base of small businesses in Canada, adopting NaaS is expected to gain significant traction in the coming time.
Network as a Service Industry Overview
The Network-as-a-Service Market is highly competitive and consists of several major players. The market is fragmented due to the presence of multiple small and large players. The major players that hold a prominent market share are focusing on expanding their customer base across regional boundaries. These companies leverage strategic collaborative initiatives to increase their market share and profitability. Some major players in the market are AT&T Inc., Verizon Wireless Inc., and Cisco System Inc., among others.
August 2022 - VMware Inc. announced that the company made innovations across its security and expanding networking system, that would help the customers embrace the cloud operating model.
May 2022 - Telstra announced a collaboration with Prysmian Group to build a new state-of-the-art inter-capital fiber network in the market. The national fiber network project is a multi-year project that will see Telstra build a new ‘state-of-the-art’ intercity dual fiber path that will add up to 20,000 route kilometers of new fiber-optic terrestrial cable, boosting inter-capital capacity and capacity for regional areas.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06483977/?utm_source=GNW
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