The growing trend towards subscription based payment system, on-demand network service and less capital investment, triggering the global network as a service market an intense commercial business opportunity.
Network as a Service (NaaS) is a cloud based business model delivers network services over the internet. Traditionally, each software element runs on dedicated hardware, Network as a Service (NaaS) brings various software solutions into common hardware system, allows various software run on shared virtual machines through common storage.
NaaS service can include flexible and extended Virtual Private Network (VPN), Wide Area Networking (WAN), bandwidth on demand (BoD), mobile network virtualization multicast protocols, custom routing, content monitoring & filtering, security services, and other applications.
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Emergence of cloud computing, network virtualization, software defined networking (SDN), rising demand for pay per use business model, expanding demand for global connectivity and rising awareness about the economic benefits of Network as a Service (NaaS) due to reduced operational & capital expenditure, are some of the key factors identified as the major growth factors drivers the global network as a service market.
Optimized bandwidth usage, reduced network traffic, transparent network visibility, faster deployment, and reduced network maintenance & management hassles, are some of the potential benefits of NaaS are expected to positively impact the growth of global network as a service market. Also, the growing trend among enterprises shifting IT investment from capital expenditure (CAPEX) to operating expense (OPEX) business model and the option to implement Network as a Service (NaaS) on existing networking infrastructures of cloud, further accelerates the growth of global network as a service market during the forecast period.
However, data security and privacy concerns is likely to deter the progression of global network as a service market, as enterprises hesitate to share critical business data and statistical information with the service providers.
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Global Network as a Service Market is segmented on the basis of end user and region. On the basis of end user, global network as a service market can be segmented into IT & telecommunication, Manufacturing, Banking, Financial services, and Insurance (BFSI), Government, Healthcare, Transport & logistics, Retail and others.
On the basis of region, global network as a service market can be segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan and Middle East & Africa. Among all end user segments, IT & telecommunication and Banking, Financial Services, and Insurance (BFSI) segments expected to dominates the market during the forecast period, due to increasing applications and continuous adaptation for cost effective IT infrastructure operations.
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Global Network as a Service Market is witnessing robust growth and is expected to witness double digit CAGR during the forecast period. North America was the dominant regional market in 2015, but it is expected to lose its share to some extent during the forecast period.
Overall Asia Pacific market particularly emerging economies, such as China and India, is anticipated to exhibit highest growth rate among all the regions, due to major interment in IT infrastructure projects, expanding telecommunication network and continuous adaptation of cloud services in sectors such as telecom, Banking and Financial Services.
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