Network as a Service (NaaS) is an architectural model in which network services are delivered virtually over the Internet and billed as part of a subscription or via pay-per-x. Companies only pay for the resources they use.
Analysts from MarketsandMarkets forecast network-as-a-service services to grow from $10.4 billion to $37.5 billion worldwide from 2021 to 2026, an annual increase of 29.4 percent. This market is overgrowing because it offers significant opportunities for growth and room for innovation for companies using NaaS. Outsourcing the network infrastructure and the associated hardware/software and maintenance creates cost advantages and freedom that can be used for strategic digital innovations.
And relieves the IT administration in-house, ensures comprehensive state-of-the-art technology, and convinces the finance department thanks to concretely plannable and manageable costs. The NaaS model is interesting for companies that aim to harmonise their digital infrastructure across locations or countries.
Switch To Network As A Service In Four Steps
A switch to NaaS can be completed quickly.
- Step 1 Design: Experts standardise the network environment.
- Step 2 Build: Profiles are converted into technical and functional standards and migrated.
- Step 3 Go-live: Device replacement, activation of the new infrastructure
- Step 4 Service: Proactive management of the new infrastructure
Several instances should be involved in the process:
- Managing directors
- It department
- Business development
In this way, all requirements for the new scenario within the framework of NaaS can be considered right from the start.
Practical Example: NaaS In Fashion Retail
The textile brand Carhartt Work in Progress (WIP) offers street fashion collections in 64 stores across Europe for trend-oriented, primarily young customers. The shopping experience includes the use of WLAN, the use of tablets, and cashless payment. All stores are networked with the headquarters in Weil am Rhein. This is where all the data comes together. In such a scenario, a failure of the Internet connection or the connected devices can significantly disrupt business processes, for example, if cashless payment or the transmission of cash register statements to the backend system at company headquarters no longer work.
Therefore, Carhartt WIP decided to switch to NaaS. The network infrastructure for the 64 European stores was set up again within twelve months while sales continued. In addition, switches, routers, and access points were replaced in all countries, and a 24-hour on-site service was set up for ongoing support. As a result of this harmonisation as part of the European network-as-a-service model, the fashion company has seen an 80 percent reduction in connection problems and downtime across all locations. Further expansion stages will follow on this basis.
The Network has always been viewed as a cost centre in many companies. With the switch to Network as a Service, the Network will become a business enabler in the future. NaaS replaces the expensive and time-consuming operation of your hardware and software components, reduces the administrative effort, and is a strategic step that gives companies more time to implement their digital ambitions.