The needs of enterprises are different now and will continue to evolve away from pure CAPEX consumption models, according to a new report from 650 Group, which provides insight into the NaaS market for campus/enterprise switching. While managed service providers historically took vendor equipment to offer solutions as a service, vendors offering the solution directly via the channel have been a relatively new phenomenon over the past two years.
“NaaS is not a new concept for Campus Ethernet Switch networks. However, it has historically been implemented by managed service providers (MSPs) or local resellers,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “The NaaS market for campus switching is still in the early stages of adoption but is showing robust growth. Existing vendors like HPE Aruba along with new vendors like NileSecure vie for first mover advantage. During 2023, several vendors enhanced their NaaS offerings and expanded solutions toward MSP partners. We continue to see vendors shift revenue away from traditional one-time CAPEX models towards subscription and NaaS to meet customer demand. Customers want options and flexibility as hybrid and remote work are here to stay, and applications reside in a multi-cloud world.”
650 Group’s Quarterly Ethernet Switch – Campus Switching NaaS report includes segmentation on a regional and worldwide basis and provides market data for the China and non-China markets. It also looks at the adoption rate of NaaS compared to Cloud Managed Solutions and provides additional adoption metrics. The reports will also examine the vendor’s current revenue splits between traditional CAPEX and subscription-related revenue. Future reports will include additional segmentation and vendors.
