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08 Aug 2023

Unpacking Network-as-a-Service: What Is NaaS and How Does It Work?

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Sharon Duchin
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Table of Contents

As the digital landscape continues to evolve, businesses of all sizes struggle to keep up with ever-changing technology. Network as a Service (NaaS) is a cloud-based solution that provides businesses with an effective way to access network services. Without having to purchase or maintain their own physical infrastructure.

Instead, NaaS lets businesses easily configure and manage their networks through a web-based interface, allowing for greater flexibility, scalability, and cost-effectiveness. It’s up to the service provider to take care of all the technical aspects of maintaining the network, including security, updates, and troubleshooting. NaaS’s popularity is expected to continue to rise as more and more businesses undergo digital transformation.

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The definition and evolution of NaaS

Network as a Service (NaaS) refers to the provision of network services over the internet on a subscription basis. Since first being coined in the early 2000s, the technological evolution of NaaS has undergone several significant advancements. From virtualization, to software-defined networking, automation, cloud computing, and 5G. These complementary developments have enabled organizations to adopt more flexible, scalable, and cost-effective networking solutions. They shift the focus from managing network infrastructure to consuming network services as a utility. Here’s an overview (with lots of acronyms).

Virtual Private Networks (VPNs) were one of the early forms of NaaS. They provide secure and encrypted connections over public networks, enabling remote users to access private networks securely. VPNs allow organizations to extend their network infrastructure to remote locations without the need for dedicated physical connections. Software-Defined Networking (SDN) came along a few years later and introduced a more flexible and programmable approach to networking. It decouples the network control plane from the data plane, centralizing the network management and allowing for dynamic configuration and control of network resources.

Then Network Function Virtualization (NFV) took the flexibility further by virtualizing a number of network functions traditionally performed by dedicated hardware appliances.  With NFV, functions such as firewalls, load balancers, and intrusion detection systems could be run as software on standard servers.

In 2013, the rise of cloud computing and Infrastructure as a Service (IaaS) providers further advanced the evolution of NaaS. With IaaS, organizations could outsource their entire IT infrastructure, including networks, to cloud service providers. This allowed them to leverage the provider’s network capabilities, scalability, and global presence, reducing the need for on-premises infrastructure.

Network virtualization technologies, like Virtual Extensible LAN (VXLAN) and Network Virtualization using Generic Routing Encapsulation (NVGRE), enabled the creation of overlay networks. Overlay networks abstract the underlying physical network infrastructure to create virtual networks with their own addressing and routing schemes. This facilitates multi-tenancy, improves network segmentation, and enhances scalability.

SD-WAN gained prominence in the NaaS landscape during Covid with the rapid transition to remote work, but emerged in the network world as early as 2014. It leverages SDN principles to dynamically route network traffic over multiple connections, including MPLS, broadband internet, and LTE. SD-WAN offers centralized management, improved application performance, and network resilience. It also purportedly reduces costs compared to traditional WAN architectures, but in practice, optimizing SD-WAN for security and global connectivity can drive up its related costs since SD-WAN lacks a global backbone.

Finally, the global deployment of 5G technology in 2019 has brought network slicing capabilities to NaaS. Network slicing creates virtual, independent networks over a shared infrastructure, tailored to specific use cases or customer requirements. It enables the provisioning of dedicated network resources for different applications, ensuring performance, security, and quality of service.

The benefits of NaaS for business

Network as a Service offers businesses numerous benefits compared to traditional network setups, particularly when it comes to ease of deployment and maintenance. But as you’ll read in this section, there’s actually a lot more to it.

 

Enhanced Ease of Deployment and Maintenance

Network as a Service (NaaS) simplifies the deployment and maintenance processes compared to traditional network setups. By eliminating the need for costly hardware and software installations, as well as ongoing maintenance requirements, NaaS offers a seamless and hassle-free solution. This benefit is particularly advantageous for businesses that lack dedicated IT resources or face resource constraints, as it allows them to leverage enterprise-grade networking capabilities without the overhead associated with on-premises infrastructure.

 

Easy Access to Applications and Data

One of the key advantages of NaaS is its ability to provide users with access to their applications and data from virtually anywhere with an internet connection. This is a boon for modern businesses that have embraced remote work or maintain geographically dispersed teams and locations. NaaS enables a consistent and reliable networking experience, ensuring that employees can collaborate and access critical resources seamlessly, regardless of their physical location.

 

Flexibility and Scalability

NaaS offers unparalleled flexibility and scalability, empowering businesses to rapidly adjust their bandwidth usage based on evolving user demands. This agility is crucial in today’s dynamic business landscape, where workloads and resource requirements can fluctuate rapidly. With NaaS, organizations can scale their network resources up or down on-demand, avoiding the pitfalls of over-provisioning or under-provisioning, and optimizing their operational costs.

 

Improved Network Performance Insights

Traditional network infrastructure solutions often lack comprehensive visibility into network performance and potential issues. NaaS, on the other hand, provides businesses with valuable insights into their network performance, enabling them to anticipate and address potential issues proactively. This proactive approach not only helps organizations optimize their networks for improved application performance and user experience but also enhances overall productivity by minimizing network-related downtime and disruptions.

 

Cost-Effective Alternative to MPLS

NaaS presents a cost-effective alternative to traditional Multiprotocol Label Switching (MPLS) solutions, which can be expensive and inflexible. By leveraging cloud-based networking technologies, NaaS eliminates the need for dedicated hardware and expensive leased lines, resulting in significant cost savings for businesses. This cost-effectiveness makes NaaS an attractive option for organizations of all sizes, enabling them to access enterprise-grade networking capabilities without breaking the bank.

 

Examples of how global enterprises use NaaS include:

  1. A multinational corporation with offices in different countries can use NaaS to connect its branches to a centralized network, for secure and efficient communication and collaboration between teams.
  2. A large e-commerce company can use NaaS to handle the high volume of traffic to its website, ensuring that customers can access its services quickly and securely.
  3. A healthcare organization can use NaaS to securely share patient data between different healthcare providers, improving the quality of care and reducing costs.

Does NaaS help sustainability efforts?

According to the World Economic Forum, e-waste – electronics that have been discarded, donated, or recycled – are the fastest-growing waste stream in the world, with global e-waste projections expected to reach 81.6 million US tons by 2030: an amount that could fill more than 100 Empire State buildings.

Network as a Service (NaaS) providers leverage virtualization technologies and shared infrastructure to consolidate network resources, leading to significant reductions in hardware requirements and associated electronic waste generation. By allowing multiple logical networks to run on shared physical infrastructure, NaaS minimizes the need for redundant dedicated networking hardware, resulting in a smaller overall hardware footprint.

NaaS’s energy profile is also lighter than traditional networks. Enabling dynamic resource allocation based on actual demand eliminates the need for over-provisioning resources to handle peak loads. This optimization approach translates into reduced energy consumption, as organizations can scale their network resources up or down as needed, mitigating the risk of inefficient energy usage due to underutilization.

The cloud computing infrastructure and data centers utilized by NaaS providers are designed with energy efficiency as a top priority, employing advanced cooling systems, power management techniques, and energy-efficient hardware. These energy-saving measures, combined with the resource optimization and hardware consolidation facilitated by NaaS, contribute to a significant reduction in the overall carbon footprint associated with networking services.

What are the challenges of NaaS?

While NaaS offers many potential benefits, there are several challenges organizations must navigate. Network performance and reliability are critical, requiring careful evaluation of service level agreements (SLAs) for uptime, latency, and bandwidth requirements. Vendor lock-in poses risks too, as migrating between NaaS providers can be difficult, demanding consideration of network configuration and data portability. Integrating NaaS with existing on-premises infrastructure, applications, and services can be complex, especially in hybrid environments. Depending on the industry, organizations may also need to ensure the NaaS provider complies with specific regulatory standards and data protection laws.

Furthermore, adopting NaaS may require developing new skills and knowledge related to cloud-based networking, virtualization, and software-defined networking (SDN) technologies. Proper training and knowledge transfer are crucial for successful implementation and ongoing management. Ultimately, organizations should carefully evaluate NaaS providers, negotiate appropriate SLAs, implement robust security measures, and develop a comprehensive strategy for integrating NaaS into their existing infrastructure and processes to address these challenges effectively.

How is NaaS related to SASE?

NaaS (Network as a Service) and SASE (Secure Access Service Edge) are two different but related concepts in the world of networking and cloud computing.

NaaS refers to the delivery of networking resources, such as bandwidth, routing, and network security, as a service over the internet.

SASE, on the other hand, is an architecture that combines networking and security functions into a single cloud-based service. SASE provides secure access to network resources for remote users, regardless of their location or the device they are using, by using a combination of networking technologies and security services such as firewalls, secure web gateways, and zero-trust network access.

So, while NaaS focuses on the delivery of network resources, SASE provides a comprehensive solution for secure access to those resources. However, NaaS can be a component of SASE, as the delivery of networking resources is a critical part of providing secure access.

The future of NaaS

The future of NaaS looks promising as cloud computing continues to rise in popularity. As technology advances, NaaS solutions will continue to evolve and integrate with other IT solutions such as AI-powered analytics tools and automated workflow processes. This integration will allow organizations to better protect their data while streamlining their network management processes through automation.

In addition, the integration of edge computing is a potential game-changer for companies looking to improve their network’s latency and responsiveness. Edge computing makes applications run faster by storing data closer to where it is required. This reduces the need for large bandwidths across wide area networks (WAN) as well as the costs associated with running an enterprise network over time.

Finally, 5G technology is expected to revolutionize how businesses access their cloud resources in the near future.  5G’s speed will enable businesses to send larger amounts of data within shorter time frames than ever before – cutting latency issues that can slow down operations or disrupt customer service experiences. Additionally, 5G technology provides enhanced encryption protocols that help keep sensitive company data safe from unauthorized access or misuse. This makes it an ideal choice for any business looking for improved efficiency from its network operations without sacrificing security measures.

Overall, Network as a Service (NaaS) offers an attractive solution for businesses seeking greater agility, scalability and flexibility from their networks. All while providing cost savings and enhanced security features. By taking into account additional considerations when evaluating NaaS solutions, such as vendor support and industry regulations, companies can get the most out of this technology. And protect themselves against potential risks associated with its implementation. With new advances in 5G and edge computing, now is an ideal time for organizations to take advantage of NaaS to stay ahead in today’s digital landscape.

Teridion's AI-powered NaaS Solution—Reliable and Cost-Effective

Teridion’s patented AI Network as a Service is the only connectivity solution that delivers reliable internet performance as a plug-and-play platform. To any global location with any edge device. Beyond offering a new standard for connectivity, Teridion breaks the trade-off between performance and ease of use.  Our NaaS is fast to deploy, flexible to configure, transparent in monitoring, and cost-effective compared to existing solutions.

It’s now easier than ever to digitally transform your enterprise, with global teams working together as though in the same room.

Picture of Sharon Duchin
Sharon Duchin

Head of Marketing

Sharon Duchin is the Head of Marketing at Terdion. Prior to joining Teridion she was the CMO of several startups, as well as a Business Unit Manager at Keter Plastic and a Marketing Manager at General Mills USA. Sharon Holds an MBA from Chicago Booth and a B.Sc. in Computer Science and Economics from the Hebrew University.
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