The enterprise networking landscape is undergoing a significant transformation with the emergence of campus network-as-a-service (NaaS). According to the newly released 2024 Campus NaaS Research Brief by AvidThink, Silicon Valley is betting big on this new segment, anticipating substantial growth by 2030.
Campus NaaS offers enterprises a simplified, subscription-based model for managing their local area networks, including both wired and wireless infrastructure. This model aligns with the broader trend of "as-a-service" offerings that have already revolutionized software, computing, and storage.
Several factors are driving the rapid growth of campus NaaS:
1. Enterprises are seeking to reduce complexity in network management and focus on core business activities.
2. The shift towards OpEx models and predictable spending is making NaaS an attractive option for CFOs.
3. Advancements in cloud management, AI/ML, and automation are enabling more efficient network operations.
4. The ongoing convergence of networking and security is creating opportunities for comprehensive NaaS solutions.
While established networking vendors like Cisco, HPE Aruba, and Juniper are adapting their offerings to the NaaS model, it's the startups that are truly driving innovation in this space. Companies like Nile, Meter, Join Digital, Ramen Networks, and Shasta Cloud are challenging incumbents with their "pure-play" NaaS offerings.
These startups are attracting significant attention and funding from Silicon Valley investors. For instance:
- Nile, founded by ex-Cisco executives, has raised $300 million and boasts John Chambers as a board member and investor.
- Meter has secured $85 million in funding from prominent investors including Sequoia Capital, Stripe founders, and Meraki co-founders.
Silicon Valley's enthusiasm for campus NaaS is reflected in the ambitious growth projections for the market. According to the research brief, analysts at Dell'Oro project the value of Campus NaaS and Public Cloud-Managed LAN to reach $12 billion by 2028, with NaaS driving a substantial portion of that growth.
Key findings from the research brief include:
• The total worldwide market value for enterprise wireless LAN and campus switching was estimated at $35 billion in 2023.
• AI-powered service automation and orchestration are expected to play a crucial role in reducing operational costs and improving user experience.
• Integration of advanced security features, including zero-trust architectures, is becoming a key differentiator for NaaS offerings.
• The rollout of Wi-Fi 7 is anticipated to drive an upgrade cycle for NaaS vendors and their customers.
As the campus NaaS market continues to evolve, it presents both opportunities and challenges for enterprises. While the promise of simplified network management and reduced costs is appealing, concerns about vendor lock-in, security, and integration with existing systems remain.
For a comprehensive analysis of the campus NaaS landscape, including detailed profiles of key players and recommendations for enterprise IT teams, readers are encouraged to download the full research brief from AvidThink.
The rapid growth and innovation in the campus NaaS market underscore Silicon Valley's belief that this new segment will play a crucial role in shaping enterprise networking by 2030. As startups continue to push the boundaries of what's possible with NaaS, established vendors will need to adapt quickly to maintain their market positions in this fast-evolving landscape.
