GigaOm Key Criteria for Evaluating Network as a Service Solutionsv4.0

1. Executive Summary

Network as a service (NaaS) is a cloud-based networking model that allows organizations to manage and scale their network infrastructure through a subscription-based approach. Unlike traditional networking, which relies on physical hardware and manual configurations, NaaS leverages software-defined networking (SDN), automation, and virtualization to provide on-demand network services, such as bandwidth allocation, security, and connectivity optimization with application-centric customization. This approach enables organizations to deploy, configure, and manage their networks quickly and efficiently, often through an easy-to-use interface or APIs.

NaaS addresses the growing demand for agile, scalable, and secure network solutions in a rapidly evolving digital and AI-driven landscape. As businesses adopt cloud services, remote work, and internet of things (IoT) devices, the complexity of managing network resources has increased dramatically. NaaS simplifies this complexity by providing a flexible, cost-effective solution that adapts to changing business needs. It also reduces the need for large upfront investments in network hardware and maintenance, making it an attractive option for organizations looking to optimize their IT budgets while maintaining high performance and security.

NaaS is crucial for organizations across multiple sectors, including telecommunications, financial services, healthcare, manufacturing, and retail. IT leaders, network administrators, and digital transformation teams benefit from the simplified management, scalability, and speed that NaaS offers. For CxOs, the ability to rapidly adapt network resources to meet evolving business demands without significant capital expenditures is a compelling value proposition, driving the adoption of NaaS solutions across vertical industries.

Business Imperative
From a CxO perspective, adopting NaaS is not just a technological upgrade but a strategic business decision that supports digital transformation, innovation, and operational efficiency. NaaS enables organizations to:

• Enhance agility and innovation: NaaS allows businesses to rapidly deploy and scale network resources in response to market changes, seasonal demands, or new product launches in addition to rapid changes in unplanned usage. This agility is critical in a competitive environment where speed to market can be a differentiator.
• Optimize costs: By converting network expenses from a capital expenditure (CapEx) to an operational expenditure (OpEx), NaaS provides financial flexibility. This model allows businesses to pay only for what they use, significantly reducing overhead costs and improving ROI.
• Improve security and compliance: NaaS providers offer built-in security features such as firewalls, encryption, and threat detection, ensuring businesses stay compliant with industry regulations with rules-engine-based validation, all without additional investments in security infrastructure.
• Simplify management: Automated network management reduces the need for specialized staff, decreases human error, and enables IT teams to focus on more strategic tasks rather than routine maintenance and troubleshooting.

Sector Adoption Score
To help executives and decision-makers assess the potential impact and value of a NaaS solution deployment to the business, this GigaOm Key Criteria report provides a structured assessment of the sector across five factors: benefit, maturity, urgency, impact, and effort. By scoring each factor based on how strongly it compels or deters adoption of a NaaS solution, we provide an overall Sector Adoption Score (Figure 1) of 4.2 out of 5, with 5 indicating the strongest possible recommendation to adopt. This indicates that a NaaS solution is a strong candidate for deployment and worthy of thoughtful consideration.

The factors contributing to the Sector Adoption Score for NaaS are explained in more detail in the Sector Brief section that follows.

Figure 1. Sector Adoption Score for Network as a Service

This is the fourth year that GigaOm has reported on the NaaS space in the context of our Key Criteria and Radar reports. This report builds on our previous analysis and considers how the market has evolved over the last year.

This GigaOm Key Criteria report highlights the capabilities (table stakes, key features, and emerging features) and nonfunctional requirements (business criteria) for selecting an effective NaaS solution. The companion GigaOm Radar report identifies vendors and products that excel in those decision criteria. Together, these reports provide an overview of the market, identify leading NaaS offerings, and help decision-makers evaluate these solutions so they can make a more informed investment decision.