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What is Network
as a Service
and how can it
help you cut CAPEX?

Author: Mark Stone

The Network as a Service (NaaS) model delivers network transformation "as a service," with simple and easy access to networking tools and processes while helping to reduce your overhead costs. This scalable, secure and reliable platform that can help minimize the expense and complexities of technology refreshes while providing a streamlined path to transformation.

This overview will help you answer the question, "what does NaaS mean?" and then dive into some of the benefits it offers and some of the concrete ways it can help your business reduce costs.

What does NaaS mean?

NaaS is a flexible, programmable, scalable, secure and reliable offering that delivers network services in a more agile, resilient and cloud-centric way than traditional network infrastructures. All of this results in a more cost-effective network.

Businesses today spend vast amounts of their budget on network equipment—even before installation and maintenance costs. With Network as a Service, you have a flexible commercial model with scalable, pay-as-you-go/subscription-based pricing and lease models. You aren't burdened with large upfront purchase expenses or inflexible commitments.

What does NaaS mean for your business? In short, it's a way to make your entire enterprise more scalable, secure, cost-efficient and adaptive.

What are the benefits of Network as a Service?

With Network as a Service, businesses can undergo a number of transformations that can help them become more productive, simplified and automated.

Network technology transformation

Today, many businesses are confined to siloed, hardware-based networks that rely on break-and-fix support models. NaaS can help you circumvent this pattern by providing a modern networking foundation that encompasses a range of features like:

  • Hybrid networking
  • Network Function Virtualization (NFV)
  • Orchestration
  • Service chaining
  • Self-healing capabilities

Operating model transformation

NaaS allows organizations to transform their operating models in numerous ways. By working with a partner, you'll be positioned to access:

  • More dynamic and on-demand services
  • Centralized management
  • Simplified and automated capabilities
  • Better digital engagement, moving away from the long lead times, complex touchpoints and labor-intensive manual engagements of the past
  • Proactive monitoring of your network, solving problems before they evolve into serious risks
  • Experienced security professionals, capable of detecting and dealing with vulnerabilities and suggesting the right hardware and software to ensure optimal network security

Commercial model transformation

NaaS helps transform customers' commercial models, as users move away from services that require large upfront costs, frequent upgrades (with the associated expenses) and multiple vendor contracts.

Our model allows customers to use services with subscription-based pay-as-you-go costs, less frequent upgrade costs and simpler contracting that uses just one service provider instead of many.

How does Network as a Service help you cut CAPEX costs?

Taking a Network as a Service approach can help your business cut CAPEX costs in four major ways:

  1. Reduces total cost of ownership of your infrastructure by continually monitoring, optimizing and tweaking your network to meet ongoing demands, e. Instead of letting parts of the network become old and inefficient, you can continually transform to ensure you're always functioning in the most cost-effective way.
  2. Removes the traditional capital cycle (with set equipment refreshes) to enable rapid transformation based on business needs. Instead of occasional equipment refreshes at set times, a NaaS approach to managing IT can help avoid vendor lock-in and allow customers to change services on uCPE or hosted in the cloud instead of requiring dedicated, proprietary hardware refreshes whenever the OEM vendor requires it.
  3. Offers a subscription-based/pay-as-you-go model, which allows more service flexibility and less vendor lock-in.  This pricing model avoids large upfront payments and purchase requirements for services that may go unused.  You'll be able to plan more accurately with monthly lease payments.
  4. Provides the flexibility to easily make network adjustments as the business evolves to keep up with market demands as well as reduce the cost of ownership. As your business grows and transforms, your network requirements change and increase. The ability to scale resources as required is critical. NaaS allows you to meet your needs by helping you to scale your network more cost-effectively and keep the cost of ownership lower.

What costs are associated with outsourcing these operations and materials?

Depending on your business or industry, the costs of outsourcing your network resources and operations with NaaS vary. However, compared with funding all your hardware, software and operations expenses yourself, budgeting for NaaS is much more predictable and manageable.

Factoring your Network as a Service subscription cost into your budget is relatively simple compared with the significant and often unanticipated expenditures required to install and maintain new infrastructure elements by yourself.

Discover how Verizon can help you access all the benefits of a NaaS model, save costs and build a more agile and scalable and secure network.