What is Network as a Service (NaaS)? Definition, Components, and Best Practices

In the network as a service (NaaS) approach, enterprises subscribe to a NaaS vendor instead of building infrastructure themselves.

Last Updated: April 12, 2023

  • Network as a service (NaaS) is defined as a software, virtualization, or cloud-intensive networking approach where an enterprise subscribes to one or more network capabilities from a NaaS vendor instead of building it themselves.
  • This may encompass hardware rentals, connectivity services, maintenance, consulting, analytics, etc.
  • This article explains how NaaS works, its components, and best practices.

Table of Contents

What is NaaS?

Network as a service (NaaS) is a software, virtualization, or cloud-intensive networking approach where an enterprise subscribes to one or more network capabilities from a NaaS vendor instead of building them, which may encompass hardware rentals, connectivity services, maintenance, consulting, analytics, and more.

Leading NaaS providers include cloud companies like Rackspace and Amazon, networking specialists like Cisco, and telecom service providers like AT&T and Verizon.

When most businesses configured their network architecture, the internet was not viewed as a trustworthy location to conduct business. Therefore, they created their own proprietary incarnations of the internet and leased connections to integrate their facilities. Each office needed its very own equipment for firewall creation, DDoS security protocols, load balancing, etc., which would help support their wide area networks (WANs).

When individuals accessed the internet (as opposed to the intranet), the traffic had to pass through the company’s network via a virtual private network (VPN) before being able to access the internet.

As business operations migrated to the cloud, this approach rapidly became inefficient. Employee bottlenecks in the secure network would impede service delivery.

Moreover, as cloud computing became more efficient, additional capabilities were accessible through the cloud. Currently, DDoS protection, firewalls, load balancing, and other crucial networking operations may all be performed in the cloud, reducing the necessity for internal IT staff to develop and run these services.

NaaS is a much more efficient option than depending on domestically managed WANs, which need ongoing maintenance and often cause network traffic bottlenecks.

With NaaS, enterprise employees may connect directly to their cloud services via a virtual network managed and secured by an external vendor instead of internal IT teams trying to keep up with the increasing demand for network services.

See More: What Is GSM (Global System for Mobile Communications)? Meaning, Working, Architecture, and Applications

Understanding the meaning of network as a service or NaaS

NaaS is a cloud-based approach that enables users to simply run the network and obtain the desired results without having to own, develop, or maintain their own infrastructure.

Organizations have the freedom to purchase services based on consumption and to grow as their business requirements evolve. NaaS also enables the monitoring and management of networking services and the tracking of consumption and pricing. On-demand services may be bought, implemented, and co-managed.

The conventional network model necessitates capital expenditures (CapEx) for physical networks, including switches, routers, and licenses. The DIY IT strategy necessitates planning and deployment effort and the competence to deploy and operate equipment and guarantee security access restrictions.

NaaS is an emerging concept for enterprises to utilize network infrastructure with flexible operating cost (OpEx) subscriptions, which include software, hardware, management tools, licensing, and lifecycle solutions.

NaaS vs. SaaS vs. IaaS

In many aspects, NaaS is the inevitable outcome of the decades-long migration of business processes to the cloud. Today, the entire network may be offered as a service instead of only software, infrastructure, or platforms. Interestingly, several other elements can be offered as a service, including software (SaaS) and infrastructure (IaaS). All three components will likely be present in a cloud-led modern enterprise landscape.

Software as a service (SaaS) is any subscription-based software program delivered through the cloud. SaaS encompasses several internet-based apps used daily.

Infrastructure as a service (IaaS) is the flexible consumption or subscription-based usage of any IT software and hardware infrastructure components over the cloud. Like SaaS, this category may encompass the comprehensive IT infrastructure spectrum, including computing, storage, and networks.

Network as a service (NaaS) differs from SaaS and IaaS because it is far more specific and refers directly to networking capabilities.

In contrast to SaaS and IaaS, it exclusively refers to networking equipment, software, and services offered in a “cloud-like” manner, implying subscription- or consumption-based pricing. Occasionally, the phrase is expanded to cover the complete daily operations and administration of a network environment by a third party, like a vendor or vendor partner.

Why is NaaS important?

NaaS is an important step in the evolution of IT and networking infrastructure because it allows enterprises to:

  • Reduces costs: When businesses match their expenses with real consumption, they benefit. They are not required to pay for unused excess capacity and may continuously expand capacity as demand increases.
  • Simplifies upgrades: Businesses with their own infrastructure must execute timely updates, fix bugs, and add security patches. Frequently, IT personnel may need to travel to multiple locations to execute such updates. NaaS enables the regular distribution of new fixes, capabilities, and features.
  • Unlocks efficiencies: It automates numerous operations, including onboarding new users, and offers synchronization and customization for optimal efficiency. This may reduce the time and resources spent on these activities.
  • Supports employees anywhere: Today’s employees may demand network connectivity from anywhere, including their offices and homes, and on any device. NaaS can offer global coverage, low-latency connections facilitated by a global point-of-presence core network, and minimal packet loss.
  • Improves security: There is a tighter synergy between the network and network security due to NaaS. The majority of vendors offer on-premise as well as cloud-based protection in a single package.
  • Obtains visibility: Additionally, customers may be given the opportunity to co-manage the NaaS. Over time, the NaaS provider performs preemptive network management and analysis of application performance and the infrastructure components.
  • Scales easily: Inherently, NaaS is more scalable when compared to conventional hardware-based networks. Users of NaaS simply purchase extra capacity rather than acquiring, installing, configuring, and securing new equipment.

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NaaS challenges to be aware of

Developing network compatibility and portability standardization is among NaaS’s challenges. A client purchasing a NaaS service, for instance, may wish to ensure that there is room for replacements or double-sourcing. In this instance, the technology must be interoperable with several other platforms or specifications.

This is where open-source projects such as OpenStack and application programming interfaces (APIs) are crucial. Further, adhering to existing Institute of Electrical and Electronics Engineers (IEEE) Internet standards is essential. Metro Ethernet Forum (MEF) and TeleManagement Forum (TM Forum) are two groups developing standards and protocols for carrier NaaS solutions.

Compatibility is another common challenge with NaaS. The NaaS provider’s infrastructure might not be interoperable with existing legacy systems, like outdated hardware and on-premises applications. Critical apps and procedures are still hosted on-premises in many businesses, not the cloud. This makes the transition to a NaaS paradigm somewhat more difficult.

NaaS vendors are now coming up with managed service offerings to help with these challenges, as we will discuss next.

Components of NaaS

A NaaS offering will include four main components that ensure it is successfully deployed:

components-of-network-as-a-service-naas

NaaS Components

1. Connectivity

The connectivity component focuses on providing network links with predefined bandwidth and quality of service (QoS). It allows different devices, systems, and networks in the organization to communicate with each other through data transmission.

These devices or systems can be wired using fiber connections or wireless, as in software-defined wide area networking (SD-WAN) or mobile 5G. Organizations can encourage employees, especially those who work remotely, to only access the network through virtual private networks (VPN) to keep their networks safe from attacks.

Connectivity enables organizations to access virtual hardware services provided by NaaS vendors to perform their daily operations smoothly and fulfill consumer requests. This component allows organizations to access resources such as storage units to store information, firewalls to safeguard sensitive information, and switches or routers to control network traffic.

2. Self-service portal

The self-service portal is a component of NaaS that enables organizations to connect and access their ecosystem of virtual network functions (VNFs) in almost real time. This portal has a user-friendly interface and can be accessed through a web browser or proprietary applications. After establishing connectivity, organizations can easily manage their network and value-added services (VAS) with a single click through the NaaS portal and integrated VNF marketplace.

The self-service portal allows organizations to configure their system settings, manage network status and performance, troubleshoot, and fix issues. This allows them more flexibility and efficiency when modifying, adapting, and scaling their networks to meet demand.

Additionally, this portal allows organizations to minimize operational costs by automating routine tasks such as maintenance, provisioning, and monitoring.

3. VAS and VNF marketplace

VAS and VNF are components of NaaS that let organizations access and buy additional network services beyond basic connectivity. VAS services enhance the functionality and capabilities of a network. Examples of these services may include fully managed local area networks (LANs), security measures such as firewalls, voice over IP (VoIP), or mobile virtual networks (MVN).

The VNF marketplace provides organizations with an easy-to-use and access portal where they can buy VAS. Usually, these VAS are made up of VNFs. The VNF marketplace gives organizations several options to choose from when deciding to purchase additional network functions such as routers, firewalls, and load balancers without investing in more hardware. Therefore, it enables them to scale up or down their operations to meet demand easily.

Additionally, this marketplace may easily integrate with applications like customer relationship management (CRM), configure-price-quote (CPQ), billing, and network inventory systems to provide continual service delivery.

4. Managed network services

Managed network services refer to the networking activities businesses outsource to a managed service provider (MSP), which is also the NaaS provider in this instance. Throughout the relocation and installation stages, these services allow organizations’ current IT teams to focus on other tasks. This improves operational efficiency since the NaaS vendor can monitor and troubleshoot specific services.

NaaS operations range from simple network access to virtual network services. The NaaS provider may additionally offer managed services for WAN optimization, unified communications, network management, cable installations, and network monitoring.

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Top 7 Best Practices of Using NaaS

Organizations looking to implement NaaS solutions should follow the following seven best practices to maximize and maintain these solutions’ effectiveness as they safeguard their assets. Remember that you need to apply these efforts consistently to ensure their success.

NaaS implementations should also be regularly monitored to measure their effectiveness and, when necessary, adjusted to keep up with industry standards.

Let us now discuss these best practices in detail:

top-best-practices-of-using-network-as-a-service-naas

Best Practices of Using NaaS

1. Develop a comprehensive network strategy

Implementing NaaS in organizations is a big step that requires careful and strategic planning. Making informed decisions is key to maintaining the desired performance levels. That is why users must clearly understand their network topology before implementing NaaS. They should understand their organization’s goals and how the network infrastructure helps it meet them.

The IT team should conduct an audit to familiarize themselves with the NaaS components, layouts, and limitations. They should understand various system configurations and identify the implemented security measures. IT should then outline the expected performance, interaction, and availability level that the NaaS solutions will bring to the organization.

2. Regularly review and implement a robust network security framework

Network security is a vital component of NaaS. A strong network framework includes policies, processes, and practices that ensure the network is safe from vulnerabilities and prevents unauthorized access. This will help organizations employing NaaS deal with cyber threats. 

Elements of network security such as firewalls, intrusion detection and prevention systems, and encryption protocols should be regularly monitored by network managers and updated to keep up with the best security measures in the industry.

Nevertheless, simply updating network protocols is not enough if these policies and procedures are not clearly communicated to IT staff in the organization and end users where applicable. For instance, setting up network encryptions is ineffective if the staff is not informed of the importance of keeping their private passkeys. Therefore, organizations should maintain a clear line of communication with the NaaS vendor regarding cybersecurity.

They should also educate their staff and publish reference documents for NaaS components to keep everyone informed to secure sensitive data from unauthorized access. Additionally, these reference documents can be used as a guide that can be reexamined to update security procedures when necessary.

3. Monitor network performance and availability

NaaS vendors allow organizations to use their hardware as the vendor operates and maintains it. In this scenario, the vendor should monitor the performance to detect and resolve problems before a shortage occurs.

Organizations that rent hardware from NaaS vendors while retaining the power to maintain and operate it (i.e., without managed services) should ensure that they have trained personnel to monitor its performance. This results in minimal outages of business-critical applications and thus enhances the QoS.

Organizations can also monitor network performance and availability using a cloud-based dashboard. This practice will enable them to detect and resolve issues before they affect end users.

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4. Backup data and create a disaster recovery plan

Disasters like fires, power outages, floods, or security breaches can occur anytime. The best practice of creating a robust disaster recovery plan can mean the difference between a minor setback and a major catastrophe. Your NaaS disaster recovery plan should include backing up network data, developing evacuation procedures, restoring access to critical business applications, and providing secondary connectivity routes.

In the same way, as the technology industry grows, so does the number of cybercriminals, and thus cyber crimes rise. It is simply a case of “when” and not “if” before organizations face a security vulnerability. Therefore, it is a best practice that all organizations using NaaS maintain a backup of their operational and sensitive data to combat ransomware attacks.

It is also a good idea to create a failover system so that users can access their applications at all times with minimal downtime.

5. Train staff and end users

Implementing NaaS in organizations requires a unified approach to ensure its success. That means every staff member, even those who need help understanding technical concepts, should be trained.

Organizations should educate both IT teams and end users to familiarize them with a basic understanding of NaaS solutions, including the type of service they get from the vendor. They should know how to access various vendor storage units, servers, and other network hardware components.

Additionally, organizations should educate staff and end users on security protocols, procedures, and corporate policies to ensure they do not succumb to security threats. For instance, they should be made aware of various phishing attacks that cyber attackers use to invade their systems. This education should be an ongoing effort as security threats keep evolving.

Remember, even if the NaaS vendor takes ownership of security and operations, some workloads and responsibilities will always be on the organization’s internal team and workforce. That is why training and ongoing education are crucial.

6. Continuously look for optimization and growth opportunities

Another useful NaaS best practice is continually improving on existing measures, policies, and procedures in the organization through quick, cloud-based reconfigurations.

Administrators can organize quarterly meetings between different departments to discuss various procedures. During these meetings, they can reexamine various components of the NaaS implementation and how it integrates with the organization and optimize where necessary. For instance, they can review how departments resolve common problems such as slow network performance, brainstorm, and optimize.

Likewise, organizations can look to upgrade existing infrastructure components, such as computers or CPUs, that contribute to slow NaaS performance.

Additionally, IT administrators must always stay on top of the best industry standards. They should ensure they use only the recommended equipment from the NaaS vendor and apply the best security practices, like updating their firmware and software.

7. Automate network tasks

Automating network tasks is a must-have for organizations implementing NaaS. They should strive to automate monitoring tasks using network analytics and reporting tools. These tools automatically monitor network and CPU usage to detect problems early and send reports to the right department.

Further, automating disaster recovery procedures allows applications to keep functioning as expected in cases where power outages occur. Organizations can also automate provisioning and maintenance tasks to improve productivity. You can work with your NaaS vendor to outline an end-to-end network automation roadmap.

Ideally, the vendor will provide chatbots and self-service portals that you can use to resolve common problems. This practice enables organizations to minimize operational costs by saving on person-hours, improving workplace productivity, and improving the end-user experience.

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Takeaway

Network as a service, or NaaS, is rapidly becoming the go-to option for companies planning digital transformation. IDC reports that this is because of shorter planning cycles and concerns around network management (2022 survey). Indeed, enterprises can expect to move at least 50% of their infrastructure to NaaS in the upcoming quarters due to its high cost, effort, and value-adding advantages. Vendors should also consider strengthening their NaaS (and cloud) capabilities to stay competitive in the marketplace.

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Chiradeep BasuMallick
Chiradeep is a content marketing professional, a startup incubator, and a tech journalism specialist. He has over 11 years of experience in mainline advertising, marketing communications, corporate communications, and content marketing. He has worked with a number of global majors and Indian MNCs, and currently manages his content marketing startup based out of Kolkata, India. He writes extensively on areas such as IT, BFSI, healthcare, manufacturing, hospitality, and financial analysis & stock markets. He studied literature, has a degree in public relations and is an independent contributor for several leading publications.
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