Analyst firm Dell’Oro Group projects that campus network-as-a-service (NaaS) revenues will grow quickly over the next five years to US$609 million, eclipsing the growth rate of the public cloud-managed LAN market, with the North American region remaining the largest revenue opportunity both for campus NaaS and public cloud-managed LAN.
The five-year compound annual growth rate (CAGR) of campus NaaS, it says, is enhanced by its recurring revenue profile.
“Campus NaaS is an emerging market and vendors are approaching it from different angles,” said Siân Morgan, wireless LAN research director at Dell’Oro Group. “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.
“LAN equipment manufacturers are expected to generate a record level of 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.”
