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 (NaaS) is a cloud model that lets businesses rent networking resources from cloud providers. Instead of owning and investing in their network infrastructure, organizations buy these services virtually on a pay-as-you-go basis.

The setup promises access to high-performance networking through the cloud without the usual physical infrastructure constraints. Businesses activate only the services they need.

This NaaS model includes essential products and services like hardware, software, wide area network optimizers, management tools, Internet connectivity, and support services, all as needed. However, configuring and managing these components can be complex. With network-as-a-service, vendors manage these components. They make them available to businesses.

A NaaS plan offers a flat fee for all included services. Alternatively, however, companies can subscribe to specific options such as security, SD-WAN, and optimization features. Some providers focus on specialized areas like secure connectivity or simple configurations.

Small and mid-sized businesses are avid users of NaaS, especially those without prior investments in a WAN setup. Larger organizations are also exploring NaaS as more "as-a-service" options emerge to help them avoid high upfront network hardware costs. New business owners benefit from network-as-a-service since it eliminates heavy capital expenses.

Using NaaS also lowers staff time needed for network upkeep, reducing training and skill requirements. A network becomes like any other utility, like electricity or water. Network teams manage NaaS through an online portal rather than a mix of tools and hardware. 

Adding a new location is simple: connect to the network-as-a-service provider’s nearest point of presence through a leased line or over the Internet.

How network-as-a-service developed

Network-as-a-service (NaaS) emerged as IT shifted toward "as-a-service" models in computing, storage, and cybersecurity. Traditionally, network solutions relied on hardware, requiring companies to make large investments in equipment and professional service contracts. 

Scaling these physical networks was slow as business needs changed. Businesses had limited control over outcomes so they relied heavily on providers to manage infrastructure.

With technological advancements, network virtualization and software-defined networking (SDN) emerged. These new technologies separated network hardware from the management software. This created a flexible infrastructure that could scale more quickly.

The rise of cloud computing also spurred interest in subscription-based services. Many companies saw that renting resources from a cloud provider was more cost-effective than building their infrastructure. Networking soon followed this trend. Delivering network services over the Internet allowed companies to avoid the complexities of managing each detail of the network setup.

Initially, NaaS attracted SMBs that were unable to maintain network infrastructure. As automation improved, larger enterprises turned to NaaS for scalability, cost savings, and a focus on core business goals. 

Newer technologies like Software-Defined Wide Area Network (SD-WAN), Secure Access Service Edge (SASE), and Intent-Based Networking (IBN) have further boosted NaaS development. These tools centralize network control, boost security, and enhance performance.

Today, NaaS continues to grow, driven by solutions that meet the diverse networking needs of modern businesses.

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 applications designed to handle network functions without physical equipment. Tasks like routing, firewalling, and load balancing are performed virtually. They enable network-as-a-service to be scalable. 

The software reduces the need for hardware, allowing companies to rely on software to meet network demands.

Security services

Security within network-as-a-service protects the network from threats. These security components include VPNs, firewalls, intrusion detection systems (IDS), intrusion prevention systems (IPS), and network security software. Each security component works together to safeguard the network.

Cloud services

As NaaS is cloud-powered, it relies on cloud computing services to automate and deliver network resources across multiple users. This includes data storage, backup services, and other cloud-based applications. Network-as-a-service providers may install various apps and software to manage network functions. 

Self-service portal

The self-service portal is an interface for on-demand management of network services. Through this portal, users scale services up or down, monitor network performance, and manage service levels. 

This tool provides visibility into performance and offers flexible control over user and device access to enhance the overall user experience.

Management and maintenance

Management and maintenance cover continuous network support, including upgrades, troubleshooting, performance monitoring, and connectivity issues. In a NaaS model, the provider handles these tasks while customers set policies, segmentation rules, and quality of service (QoS) standards.

Consulting services

Many network-as-a-service providers present consulting services to guide businesses in aligning network strategies with their goals. Consulting services assist with transitioning to new technologies, regulatory compliance, and strategic planning. 

Consulting services help businesses make informed decisions about how best to use NaaS, taking into account their unique operational requirements.

Benefits of adopting NaaS

Traditional infrastructure adapts slowly, but NaaS lets businesses adjust their network capacity quickly. Its benefits are numerous. It provides IT simplicity and automation; enterprises benefit by matching network costs with actual usage. They can then add resources as needed to avoid the hassles of maintaining hardware. 

Those managing their infrastructure face the added responsibility of upgrades, bug fixes, and security patches. IT staff may even need to travel to different locations to configure WANs for new changes. Network-as-a-service, however, simplifies many of these tasks from your day-to-day through certified NaaS providers. Businesses count on these vendors to manage their network completely.

Scalability 

Network-as-a-service provides unmatched scalability compared to hardware-based networks. It allows organizations to scale their infrastructure as their requirements evolve. 

You don’t have to acquire, deploy, or secure new equipment whenever you need more capacity. If you have NaaS, you buy extra network resources based on demand.

Access from anywhere

NaaS supports network access from any location because it is installed in the cloud. Users can connect at home or office on any device as long as there’s an Internet connection.  

As with traditional networks that require VPNs, network-as-a-service offers global, low-latency connectivity through a worldwide 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 improve infrastructure return on investment (ROI) for cloud connectivity. While sending data to the cloud is usually free, costs are incurred when retrieving data. 

A dedicated connection provides a more predictable cost structure. Using intuitive management tools, your NaaS-based business can prioritize important traffic on high-quality connections.

Visibility and insights

Network-as-a-service enables proactive monitoring with security enforcement features alongside capabilities for advanced firewall protection and packet inspection. It tracks the performance of applications over time. 

Some providers also allow customers to co-manage NaaS for added customization and control.

Improved application experience

Network-as-a-service maintains a consistent user experience in a multi-cloud environment, irrespective of the application’s hosting provider. It meets service level agreements (SLAs) with AI-driven tools. 

The service actively routes traffic to enhance user experience while resolving potential issues before they affect performance.

Adds SD-WAN as a service

An added benefit of NaaS is its ability to integrate SD-WAN as a value-added service. This addition improves network performance and boosts application quality. SD-WAN makes it possible for companies to adjust network configurations when required.

Challenges of NaaS

Although NaaS brings valuable benefits, businesses should consider some challenges, such as dependence on the provider and limited customization.

Relying on third-party providers for network infrastructure can increase vulnerability to outages or issues within the provider’s system. Changing providers is also challenging since migrating infrastructure is time-intensive. Because most network-as-a-service providers offer a standard range of network services, this limited customization may prevent businesses from fully tailoring their network infrastructure to meet unique requirements.

Some users also have security concerns. NaaS providers handle the security of data passing through their networks. Customers need assurance that robust security measures protect their 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.