According to a recent Dell’Oro report that examines the growing popularity of ‘as a service’ (aaS) offerings to business, adaption of ICT Networks (NaaS) in campus installations is likewise spiralling globally.
Commenting on the report – entitled ‘Campus NaaS and Public Cloud-Managed LAN Advanced Research Report’ – Siân Morgan, Wireless LAN Research Director at Dell’Oro Group said: “LAN equipment manufacturers are expected to generate record revenues this year, but we are predicting a contraction in 2024. We expect to see Campus NaaS gain traction as the LAN Market slows down. The recurring price structure and maintenance-free technology are two elements that will resonate with certain segments of enterprises.
“Campus NaaS is an emerging market and vendors are approaching it from different angles. All of the Campus NaaS variants are inspired by the cloud-consumption model, but that’s where their similarities end. Each version is targeted at different segments and has different growth potential. Some offers will help vendors gain market share, while others could expand the overall size of the market.
Additional highlights from the Report:
- Recurring license revenues are becoming a material force for revenue growth, and these will gain pace as Public Cloud-Managed LAN revenues grow to US$9 billion in 2027.
- Three types of Campus NaaS are emerging: Campus NaaS Enabler; Turnkey Campus NaaS; and Wi-Fi as a Utility. Each type of Campus NaaS has different characteristics and growth drivers.
- New vendors are jumping into the fray. Startups are emerging from stealth mode, incumbent vendors are evolving their offers, and there is an opportunity for vendors from adjacent markets to take market share.
- The 5-year CAGR of Campus NaaS is enhanced by its recurring revenue profile.