Dell'Oro Group projects that Campus Network as a Service (CNaaS) revenues will double in 2024 in the midst of a LAN equipment market contraction.
"Campus NaaS uses cloud-managed equipment to simplify LAN connectivity for enterprises," said Siân Morgan, Wireless LAN Research Director at Dell'Oro Group. "CNaaS vendors are changing the way companies consume Wi-Fi in their network, and we expect this model of service to grow faster than the overall LAN market for the next five years. CNaaS startups such as Nile, Join Digital, and Shasta Cloud have begun partnering with service providers to extend the reach of their innovative offers.
"Public Cloud-Managed LAN equipment has always grown faster than the overall LAN equipment market, but that growth differential is narrowing. The next wave of high growth in the LAN equipment market will come from CNaaS. We've identified 13 vendors with CNaaS, and with the new CNaaS Service Packs that HPE has released, the company has the largest breadth of available offers," add Morgan.
Additional highlights from the Campus NaaS and Public Cloud-Managed LAN Advanced Research Report:
- On average, unit pricing for LAN equipment is forecasted to decline over the next five years now that lead times have returned to normal.
- Recurring license revenues outgrew expectations in 2023, promising to contribute considerable revenues to both Public Cloud-Managed LAN and to CNaaS.
- The market has converged on three types of Campus NaaS offers: Enabler, Turnkey, and LAN-as-a-Utility. Each type of Campus NaaS has different characteristics and growth drivers.
- The CNaaS model is expected to flourish in two particular use cases which benefit from a recurring cost structure and a fully-managed network.
