What is Network-as-a-Service (NaaS)?
The ability to manage networks without the usual hardware and maintenance burdens shifts how companies approach operations. Network-as-a-service (NaaS) offers just that.
Businesses of any size now choose NaaS for the flexibility to grow at their own pace while paying only for what they need.
So, what exactly is NaaS, and how is it changing the way organizations handle connectivity? In this article, learn what network-as-a-service is, how it works, and how to utilize it.
What is NaaS?
Network-as-a-Service, or NaaS, lets businesses rent network services from a cloud provider instead of buying and managing their own equipment. It works like a subscription; companies only pay for the services they need.
NaaS gives businesses fast and reliable network access without the hassle of setting up or maintaining hardware. They can turn services on or off depending on what they need at the time.
These services usually include hardware, software, Internet connections, security tools, and systems to manage the network. The provider handles the setup, keeps things running, and takes care of any technical issues.
Some businesses pay a flat monthly fee for a full package. Others pick and choose services, like stronger security or faster speeds. Some NaaS providers focus on making setup simple or keeping data extra secure.
Small and mid-sized businesses often choose NaaS because they don’t have the budget or staff to build their own networks. Larger companies use it too because it cuts costs and helps them grow faster. New businesses like it because they can get started quickly without spending a lot on hardware.
Since the provider handles most of the work, companies don’t need large IT teams. Everything is managed through an online dashboard, much like managing your home utilities.
If a company opens a new location, connecting it is easy. They just use the Internet or a leased line to link up with the provider’s nearest access point.
How network-as-a-service developed
As more parts of IT moved to "as-a-service" models, like cloud storage and cybersecurity, networking started to do the same. In the past, companies had to buy expensive hardware and hire outside experts just to set up and manage their networks.
This old way made it hard for businesses to grow quickly. If they needed to expand, it took time, money, and effort. They also didn’t have much control and had to depend on service providers.
New tools like network virtualization and software-defined networking (SDN) helped solve these problems. They made it possible to separate the physical equipment from the software that controls the network. This made it easier to scale and adjust as business needs changed.
As cloud computing became more common, companies saw that renting services was often cheaper and easier than building their own systems. Networking followed that trend. With NaaS, businesses could run their networks over the internet without having to handle all the complicated setup and maintenance.
At first, smaller businesses used NaaS because they didn’t have the money or staff to build their own networks. But as the technology improved, bigger companies started using it too. NaaS helped them cut costs, grow faster, and focus on their core work.
New tools like SD-WAN, SASE, and Intent-Based Networking (IBN) have pushed NaaS even further. These tools make networks safer, faster, and easier to manage.
Today, NaaS is becoming more common because it gives businesses the flexible and scalable networks they need to keep up with change.
How does NaaS work?
With network-as-a-service, customers can choose from several options:
- Managed service. A managed service lets customers pay for network hardware subscriptions while the provider handles maintenance and management.
- Rented hardware. The provider owns the equipment, but the customer rents it, taking responsibility for installation and operation.
- Outsourcing. Complete outsourcing is also available, covering deployment, ongoing management, and daily network operations handled entirely by the provider.
Network-as-a-service can take the place of traditional virtual private networks (VPNs), multiprotocol label switching (MPLS) connections, and other older network setups. It can also replace on-site networking equipment like load balancers.
The key features of network-as-a-service are as follows:
- Virtualization of network infrastructure. NaaS virtualizes physical network components, thus reducing reliance on hardware. This setup enables remote access through cloud-based tools.
- On-demand scalability and flexibility. Businesses can adjust network capacity instantly to match their needs. Rapid scaling supports growth and helps adapt quickly to new demands.
- Pay-as-you-go pricing model. The subscription-based approach charges only for the resources used. This approach reduces upfront costs and simplifies budgeting.
- Self-service portal for easy management. A self-service portal provides direct control over network configurations. Businesses can adjust settings, monitor usage, and manage resources in real time.
- Multi-tenancy support. Network-as-a-service supports multiple users on a shared network. The design suits companies with multiple departments or client accounts.
Network-as-a-service frees organizations from the challenges of buying, setting up, and managing their own network infrastructure. The network services offered are cloud-powered. Businesses looking for a NaaS solution can subscribe to a plan that provides access to the provider’s network resources.
Components of network-as-a-service
These products and services are included with network-as-a-service.
Connectivity services
Connectivity services offer essential links for devices within a business network. Options include wired access, WiFi, 4G/5G mobile, broadband, fiber, satellite, and Internet access. These services enable communication across the network. Devices such as WiFi access points are also typically included to support connectivity.
Network hardware and licensing
Network hardware includes necessary physical equipment, like routers, modems, switches, firewall appliances, and power supplies. Some NaaS models provide hardware on a subscription basis, often bundling in licensing.
Advanced NaaS solutions may reduce the need for physical hardware by introducing virtual devices. Installation materials are part of this component, supporting setup and deployment.
Virtual Network Functions (VNFs)
VNFs are software tools that handle network tasks without needing physical devices. Jobs like routing, firewall protection, and load balancing are done through software. This makes NaaS easier to grow and adjust.
Since these tasks are virtual, companies don’t need as much hardware. Instead, they can use software to meet their network needs.
Security services
NaaS includes built-in security to keep networks safe from threats. Common tools include VPNs, firewalls, systems that detect or block attacks (IDS and IPS), and network security software. These tools work together to protect data and users.
Cloud services
Because NaaS runs in the cloud, it uses cloud services to deliver network tools to many users. This can include data storage, backup services, and cloud-based apps. Providers may also install software to help run the network.
Self-service portal
The self-service portal lets users manage their network settings anytime. From this online dashboard, they can adjust service levels, track performance, and control access for users and devices.
It gives clear insight into how the network is working and helps improve the user experience.
Management and maintenance
With NaaS, the provider handles network support like upgrades, problem-solving, and keeping the system running well. Customers can still set rules for how traffic flows and what quality of service (QoS) is needed.
Consulting services
Many NaaS providers offer expert advice to help businesses plan and improve their network setup. These services guide companies through tech changes, rule compliance, and big-picture planning.
Consultants help businesses choose the right NaaS options based on their specific needs.
Benefits of adopting NaaS
Traditional networks can be slow to change, but NaaS makes it easy for businesses to grow or shrink their networks when needed. It simplifies IT work, automates many tasks, and lets companies pay only for what they use—saving time and money.
When managing their own networks, companies must handle updates, fix bugs, and install security patches. IT staff may even have to travel to update network equipment in different places. With NaaS, providers take care of those tasks. This allows businesses to focus on their core work while experts manage the network.
Scalability
NaaS is much easier to scale than traditional, hardware-based networks. As your business grows, you can quickly add more network power without buying and installing new equipment.
You simply request more resources as needed, based on current demand.
Access from anywhere
Because NaaS is cloud-based, users can connect from anywhere—at home, in the office, or on the go—as long as they have internet access.
Like traditional networks with VPNs, NaaS also supports fast, global connections using a strong, worldwide network backbone.
Automation
In today’s digital world, over 50% of all B2B collaboration occurs through APIs. Network-as-a-service enhances network functionality by elevating basic network capabilities (Layer 2 and Layer 3) to an application level (Layer 7).
The upgrade allows businesses to establish connections quickly without having to wait the typical 30 to 60 days as before.
Operational cost advantage
Dedicated network lines can help businesses get better value from their cloud investments. While sending data to the cloud is often free, pulling it back out usually costs money.
With a dedicated connection, pricing is more stable and easier to plan for. NaaS tools also let businesses manage traffic more easily, making sure important data travels on high-quality links.
Visibility and insights
NaaS includes built-in tools that help monitor the network and enforce security. Features like firewalls and packet inspection protect the system and watch how apps perform over time.
Some providers even let customers help manage the network, giving them more control and customization.
Improved application experience
NaaS helps apps run smoothly, even across different cloud platforms. It uses smart tools, like AI, to meet service level agreements (SLAs) and keep users happy.
The system moves traffic around to avoid problems and fix slowdowns before users notice them.
Adds SD-WAN as a service
A bonus of NaaS is that it can include SD-WAN. This tool boosts network speed and improves how apps perform. It also lets companies change network settings when needed, giving them more flexibility.
Challenges of NaaS
While NaaS offers many advantages, it also comes with a few potential drawbacks that businesses should keep in mind, like relying on an outside provider and having limited options for customization.
Since NaaS depends on third-party providers to deliver network infrastructure, any issues or outages on the provider’s side can affect your business. Switching providers isn’t easy either; moving your network setup to a new platform takes time and effort. Most NaaS providers offer a standard set of services, which can limit how much you can customize the network to fit your company’s specific needs.
Security is another concern for some businesses. Because NaaS providers manage the flow of data across their networks, customers need confidence that strong security systems are in place to protect that data from unauthorized access.
Real examples of NaaS
A real-world example of NaaS is Verizon's network-as-a-service solution. Verizon has designed this business model for enterprises needing a flexible approach to connectivity.
Through this solution, businesses then connect multiple locations without investing in physical network infrastructure. Verizon’s network-as-a-service supports SD-WAN to a large extent.
A business using Verizon’s NaaS can quickly expand its network to new locations. The service includes options for advanced security, such as Secure Access Service Edge (SASE), which allows companies to protect data as they grow.
Verizon manages updates and monitors network performance to allow businesses to focus on core operations.
Frequently asked questions
What is the difference between NaaS, IaaS, and PaaS?
NaaS focuses solely on networking services. IaaS provides infrastructure like virtual servers and data storage. By contrast, PaaS offers a software platform for app development.
How is NaaS related to SASE?
NaaS and SASE both provide cloud-based network services, but SASE combines networking with security features. Together, they support modern enterprise needs for secure, flexible connectivity.
Who is a NaaS provider?
A NaaS (network-as-a-service) provider is an IT company with industry and manufacturer certifications for the products and services they provide, along with managing the entire service lifecycle.
