This comes at a time when industry watchers are forecasting growth in the nascent NaaS market.
In its Network as a service (NaaS): worldwide forecast 2025–2029, Analysys Mason predicts that NaaS connectivity revenue worldwide, including revenue from both retail and wholesale connectivity, will grow at a CAGR of 42% between 2024 and 2029 to reach $14.7 billion.
Despite the potential of NaaS, the research firm cautions that service providers need to make sure they have a full offering to stand out in what it says is a “crowded” market.
Joseph Attwood, Senior Analyst for Analysys Mason, said that providers need to offer “self-service portals with strong network management, fault detection and response, observability and analytics capabilities” as well as “comprehensive marketplaces for Layer 3–7 overlay and other IT services, and should improve their support for proprietary and/or (preferably) standardized APIs to enable enterprises to manage their connectivity.”
He added that service providers could ease adoption issues by giving enterprise customers a “walk-before-you-run” approach. “This may involve supporting more-traditional, long-term contracts alongside pay-as-you-go pricing models for NaaS,” he said. “Additionally, service providers can support both co-managed and fully managed NaaS for enterprises that do not want the complexity of managing NaaS via a self-service model.”
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