What Is NaaS (Network as a Service)? | phoenixNAP IT Glossary

Network as a Service (NaaS) is a cloud-based service model that provides network infrastructure and services on demand, allowing businesses to manage and scale their networking resources without the need for physical hardware.

What Is Network as a Service (NaaS)?

Network as a Service (NaaS) is a cloud-based model that delivers network infrastructure and services over the internet, enabling businesses to consume networking resources without the need for traditional on-premises hardware.

In this model, service providers offer a wide range of networking functions, including virtualized services such as load balancing, firewalls, VPNs, and bandwidth management, as well as the ability to scale resources on demand. This allows organizations to manage their networks through software-defined technologies, providing more flexibility, cost-efficiency, and the ability to dynamically adjust resources based on usage needs.

With NaaS, businesses can benefit from greater agility, reduced maintenance overhead, and improved network performance, all while avoiding the complexities associated with owning and maintaining physical network equipment. The service is typically offered on a subscription or pay-as-you-go basis, which further helps optimize costs and reduce capital expenditure.

How Does NaaS Work?

Network as a Service works by leveraging cloud infrastructure to deliver virtualized network functions and services to organizations on-demand. The process typically involves the following steps:

Service provisioning. Customers subscribe to a NaaS provider, which allows them to select the specific network services they require. These services are hosted in the provider’s cloud environment, removing the need for physical hardware on the customer’s premises.
Network virtualization. NaaS providers use software-defined networking (SDN) to virtualize the network, abstracting the hardware layer and allowing customers to manage and configure the network through centralized software. This enables the creation of virtual networks with varying configurations, such as virtual LANs (VLANs), firewalls, and VPNs, based on business needs.
Resource allocation. NaaS enables the dynamic allocation of network resources, such as bandwidth, security policies, and network functions, which can be scaled up or down based on demand. This allows businesses to optimize network performance while controlling costs by paying only for what is used.
Service management. Through a cloud-based dashboard or management interface, customers configure, monitor, and manage their network infrastructure. The provider typically offers tools for real-time monitoring, traffic analytics, and performance optimization, helping businesses maintain the health and security of their networks.
Security and compliance. NaaS providers typically integrate robust security features such as firewalls, encryption, and intrusion detection, ensuring that the network is protected from potential threats. Additionally, compliance with industry standards and regulations is often handled by the service provider, reducing the burden on the customer.
On-demand scalability. Since NaaS is based in the cloud, businesses can easily scale their network infrastructure to accommodate growth or changing requirements. This flexibility allows companies to rapidly adapt to evolving needs without significant investments in new hardware or network redesigns.

What Is NaaS Used For?

Network as a Service is used to deliver scalable and flexible networking solutions that replace traditional, on-premises network hardware. NaaS is commonly used for several purposes, including:

Scaling network resources. Businesses can dynamically scale their network infrastructure based on current demand, whether they need additional bandwidth, security features, or virtualized networking functions. This scalability ensures that the network can grow or shrink in real-time without the need for large capital investments.
Reducing infrastructure costs. NaaS eliminates the need for businesses to purchase and maintain expensive physical networking hardware, such as routers, switches, and firewalls. With NaaS, organizations pay for what they use, reducing capital expenditure and operational overhead.
Supporting remote and distributed workforces. With the increasing trend toward remote work and distributed teams, NaaS helps organizations maintain secure, reliable connections across various locations. Virtual private networks, cloud-based security, and optimized bandwidth management are integral for ensuring smooth operations for remote workers.
Network virtualization. NaaS allows businesses to implement software-defined networks, providing flexibility and ease of management. This makes it easier to create, manage, and deploy virtual networks for specific use cases like cloud environments, multi-cloud connectivity, and data center interconnections.
Security and compliance. NaaS includes built-in security features such as firewalls, intrusion detection systems, and traffic encryption, which help businesses secure their networks from cyber threats. This is particularly useful for organizations that need to comply with industry regulations and security standards.
Edge and IoT networking. As businesses increasingly adopt edge computing and Internet of Things (IoT) devices, NaaS provides the necessary network infrastructure to support the real-time data processing and low-latency communication required for these technologies.
Improving network performance. With features like traffic management, load balancing, and optimized routing, NaaS improves the performance and efficiency of a company's network. This results in faster data transfer, reduced latency, and improved application performance, especially for cloud-based applications.

Network as a Service Examples

Here are a few examples of Network as a Service (NaaS) offerings:

Cisco Meraki. Cisco Meraki offers cloud-managed networking solutions, including wireless LAN, security appliances, and mobile device management. It allows businesses to manage their networks through a centralized, cloud-based dashboard, simplifying network configuration, monitoring, and troubleshooting.
AWS Direct Connect. Amazon Web Services (AWS) Direct Connect allows businesses to establish a dedicated network connection from their premises to AWS. This service bypasses the public internet, offering more reliable and secure connections for transferring large volumes of data, ensuring better performance for cloud-based applications.
Aryaka Networks. Aryaka provides a global NaaS platform that offers software-defined WAN (SD-WAN) services. It optimizes connectivity for businesses with multiple branch offices, ensuring high-performance networking across geographies, and offers built-in security and application optimization features.
VMware SD-WAN by VeloCloud. VMware’s SD-WAN solution is a cloud-delivered service that simplifies WAN management by virtualizing network services. It optimizes network traffic across hybrid and multi-cloud environments, providing secure and reliable connectivity for remote locations and cloud applications.
Cloudflare Magic WAN. Cloudflare Magic WAN provides a scalable, secure, and high-performance WAN as a service. It connects distributed teams and applications to the internet, using Cloudflare’s global network to improve security, performance, and resilience without the need for traditional hardware-based solutions.

How to Implement NaaS?

Implementing NaaS involves several strategic steps to ensure that your network infrastructure meets your business needs while optimizing costs, performance, and security. Here’s a step-by-step guide to implementing NaaS:

Assess network requirements. Start by understanding your organization’s specific network requirements, including bandwidth needs, security requirements, remote access, and scalability. Determine the types of network functions you need (such as VPNs, SD-WAN, firewalls, etc.) and assess how they align with your overall IT and business goals.
Choose a NaaS provider. Research and select a NaaS provider that best fits your needs. Compare factors such as service offerings, geographical coverage, security features, and integration with existing infrastructure. Leading providers like Cisco Meraki, Aryaka, or VMware offer various NaaS solutions, so choose one based on your specific use cases, such as cloud connections, SD-WAN, or secure remote access.
Plan network architecture. Design the architecture of your virtualized network. This includes deciding on the virtual network functions (VNF), IP addressing, and segmentation. A clear network design will help with easy scalability, security management, and future growth. Map out how different locations or branches will connect to the NaaS platform and any dependencies on other cloud services or data centers.
Set up virtualized network functions (VNF). Deploy virtualized network functions such as load balancing, firewalls, routing, and traffic optimization. NaaS platforms often include pre-built VNFs, but you may need to configure them to meet your business needs. This step ensures that all critical network services are available in a flexible, cloud-delivered manner.
Integrate with existing infrastructure. Ensure that your NaaS solution integrates seamlessly with your existing IT infrastructure, including on-premises systems, private cloud, or other cloud platforms. This might require configuring hybrid-cloud connections or establishing secure VPN tunnels. Integration ensures that your current systems work in harmony with the new NaaS solution.
Configure security features. Security is a critical aspect of NaaS implementation. Configure built-in security features such as encryption, firewall rules, intrusion detection and prevention systems, and access control policies. Define how your network will be segmented and how security will be maintained for remote access, especially for distributed teams or branch offices.
Monitor and optimize network performance. Utilize the NaaS provider’s monitoring tools to track network performance in real time. Most NaaS solutions come with dashboards for visibility into network health, traffic patterns, and potential bottlenecks. Set up alerts and reports to ensure proactive management. Use this data to continuously optimize the network for speed, reliability, and security.
Scale network resources as needed. Monitor usage patterns and adjust bandwidth or service capacity as needed to accommodate growth or changes in workload. NaaS allows businesses to scale their networks up or down efficiently on demand without needing new hardware investments.
Test and validate. Before fully transitioning to NaaS, conduct comprehensive testing to validate that all components (security, performance, scalability) are functioning correctly. Test for failover scenarios, network load handling, and security breaches to ensure the network can handle the expected workload and meet reliability standards.
Provide training and documentation. Ensure that your IT team is trained on the new NaaS platform and how to manage, monitor, and troubleshoot it. Documentation should include guidelines for operating the virtualized network, addressing common issues, and scaling the network.
Review and refine. After deployment, continuously evaluate the effectiveness of your NaaS solution. Regularly review network performance, cost efficiency, and security measures to ensure that the NaaS provider is meeting your business goals. Refining network configurations based on evolving business needs and new NaaS features can help maximize value.

How Does NaaS Help Companies?

Network as a Service (NaaS) helps companies by providing scalable, flexible, and cost-efficient networking solutions that eliminate the need for on-premises hardware. By leveraging cloud-based infrastructure, businesses can easily manage and scale their network resources, such as bandwidth, security, and virtual network functions, without significant upfront investments.

NaaS enhances network performance, improves security with integrated features like firewalls and encryption, and allows for real-time monitoring and optimization. This flexibility empowers companies to quickly adapt to changing business needs, support remote workforces, and maintain high levels of operational efficiency while reducing maintenance costs and complexity.

What Are the Benefits and the Challenges of Network as a Service?

While NaaS offers numerous advantages, such as scalability, cost efficiency, and improved network management, there are also potential obstacles that organizations need to consider before implementation. Understanding both sides helps businesses make informed decisions about integrating NaaS into their network infrastructure.

NaaS Benefits

Network as a Service offers several key benefits that help businesses optimize their network infrastructure. These advantages make it an attractive choice for organizations looking to improve scalability, reduce costs, and enhance network performance. Here are some of the primary benefits of NaaS:

Scalability. NaaS allows businesses to scale their network resources up or down based on demand. This flexibility ensures that companies can adjust their network capacity without the need for significant infrastructure changes, enabling them to easily accommodate growth or fluctuating workloads.
Cost efficiency. By moving to a cloud-based network, businesses can eliminate the need for costly on-premises hardware and reduce maintenance and management expenses. With NaaS, companies typically pay for only what they use, helping to optimize their operational budgets and avoid large capital expenditures.
Simplified network management. NaaS provides a centralized, cloud-based management platform that streamlines the configuration, monitoring, and troubleshooting of network services. This reduces the complexity of managing physical network devices and allows IT teams to focus on higher-value tasks rather than maintaining hardware.
Improved security. NaaS platforms often come with built-in security features such as firewalls, intrusion detection systems, and data encryption. These features help businesses safeguard their networks from cyber threats while ensuring compliance with industry standards and regulations.
Enhanced performance. NaaS providers typically offer optimized, high-performance networking capabilities, including low-latency connections and efficient traffic routing. This ensures that businesses can deliver reliable and fast access to cloud-based applications, even for remote or distributed teams.
Faster deployment. With NaaS, businesses can quickly deploy and configure network services without waiting for the installation of physical devices. This speed of deployment enables companies to meet business demands more rapidly, supporting faster time-to-market for new initiatives.
Flexibility for remote and distributed teams. NaaS supports remote work environments by providing secure and reliable connectivity for employees across multiple locations. With virtualized network functions, businesses can easily integrate remote access solutions, such as VPNs and secure WANs, to ensure seamless communication across global teams.

NaaS Challenges

While NaaS provides significant benefits, there are also several challenges that organizations may face when implementing or relying on NaaS solutions. These challenges include:

Dependence on service providers. With NaaS, businesses rely on external service providers for their network infrastructure. This dependency means that any issues, such as downtime or service disruptions, are beyond the organization's direct control, potentially impacting business operations.
Security and compliance concerns. While NaaS typically includes built-in security features, organizations may still face challenges ensuring that these solutions meet their specific security and compliance requirements. Managing third-party access, data privacy, and regulatory compliance can be more complex when relying on an external provider.
Performance variability. NaaS is dependent on the provider's infrastructure, which means that performance can be affected by factors such as internet connectivity, network congestion, or provider limitations. Businesses may experience unpredictable latency or bandwidth issues, especially if the service is not optimized for their specific use case.
Integration with existing systems. Integrating NaaS with legacy on-premises infrastructure or other cloud services can be challenging. Organizations need to ensure seamless compatibility and avoid service disruptions, which may require specialized technical expertise and careful planning.
Cost management and complexity. Although NaaS is generally more cost-effective than traditional networking, managing the ongoing costs can be complex. Businesses must monitor usage carefully to avoid unexpected charges, especially with variable pricing models based on bandwidth or consumption. Additionally, evaluating the total cost of ownership can be more difficult when dealing with subscription-based pricing.
Vendor lock-in. Moving to a NaaS model can result in vendor lock-in, as businesses may become heavily reliant on the service provider's platform and technologies. Switching providers or migrating away from NaaS can be complex and costly, making it difficult for organizations to maintain flexibility.

What Is the Difference Between SASE and NaaS?

Here is a table that outlines the key differences between SASE (Secure Access Service Edge) and NaaS:

Feature	SASE	NaaS
Definition	SASE is a security-focused architecture that integrates networking and security services, such as SD-WAN, firewall, secure web gateway, and zero trust network access (ZTNA) into a single cloud-delivered service.	NaaS is a cloud-based service model that provides on-demand network infrastructure, including functions like virtual networks, bandwidth management, and connectivity without the need for physical hardware.
Primary focus	Security and networking convergence, ensuring secure access to resources regardless of location.	Scalable network infrastructure, enabling businesses to manage and optimize their networks on-demand.
Core services	Includes SD-WAN, firewall, ZTNA, secure web gateway, VPN, and cloud security functions.	Includes virtualized network functions like VPNs, SD-WAN, load balancing, and traffic management.
Network architecture	Focuses on unifying networking and security into a single service edge for all users and devices.	Primarily concerned with providing flexible, scalable network resources through cloud-based infrastructure.
Security features	Strong emphasis on integrated security, including threat prevention, secure access, and identity-based policies.	Security features may be included, but NaaS is more focused on the networking side of services rather than on holistic security solutions.
Target use case	Ideal for organizations with distributed workforces or those using cloud applications that need secure access and traffic management.	Best suited for organizations looking to optimize and scale network resources dynamically, often without managing physical network hardware.
Deployment model	Delivered via a unified cloud service, combining networking and security features in one platform.	Delivered via cloud services, providing virtualized network infrastructure that can be scaled up or down as needed.
Flexibility	Provides flexibility for users and devices to securely access applications and data from any location.	Provides flexibility in scaling network resources such as bandwidth, virtual networks, and network functions.
Example providers	Zscaler, Palo Alto Networks, Cisco Umbrella, Netskope.	Cisco Meraki, Aryaka Networks, VMware SD-WAN, Cloudflare Magic WAN.

What Is the Difference Between SD-WAN and NaaS?

Here is a comparison between SD-WAN (Software-Defined Wide Area Network) and NaaS:

Aspect	SD-WAN	NaaS
Definition	A technology that uses software to manage and optimize a wide-area network (WAN) by providing centralized control and flexible traffic routing.	A cloud-based service model that delivers network infrastructure and services (like routing, security, and load balancing) on demand.
Primary focus	Optimizing and managing WAN performance across multiple sites, often using internet connections alongside private circuits.	Providing virtualized network functions (e.g., firewalls, load balancing) on demand, offering flexibility, scalability, and cost efficiency.
Deployment	Typically deployed on-premises with an emphasis on optimizing traffic between branch offices and data centers or cloud environments.	Entirely cloud-based, allowing businesses to consume network services without the need for physical hardware.
Scope of services	Primarily focuses on WAN optimization, application performance, and secure connectivity across multiple locations.	Offers a broader range of network services, such as SD-WAN, security, bandwidth management, and virtualized networking, on demand.
Scalability	Scalability is achieved by adding more SD-WAN appliances or controllers.	NaaS is highly scalable, as services are dynamically allocated based on demand and usage, with no hardware limitations.
Flexibility	Offers flexibility in terms of managing traffic paths and policies but may still require dedicated hardware for deployment.	Provides complete flexibility by offering network services entirely in the cloud, allowing businesses to scale resources as needed.
Cost structure	Typically involves upfront costs for SD-WAN devices and ongoing management costs. Pricing can be based on licenses or per-site.	Subscription or pay-as-you-go model, where businesses pay for the network services they use, avoiding upfront hardware costs.
Security	Provides built-in security features such as encryption, secure tunneling, and segmentation across WAN connections.	NaaS includes security services such as firewalls, VPNs, and intrusion detection, depending on the provider’s offering.
Use cases	Ideal for businesses with multiple remote sites or branch offices needing reliable and secure connectivity over a wide area.	Suitable for businesses that want to avoid managing physical network infrastructure, needing scalable and flexible network services.

What Is the Future of NaaS?

Network as a Service (NaaS) is expected to grow in relevance as organizations adopt cloud-based and hybrid IT environments. Future developments in NaaS are likely to include AI-assisted traffic management, integrated security features, and increased automation for provisioning and monitoring. The expansion of technologies such as 5G, edge computing, and IoT will further drive demand for NaaS solutions that can support low-latency, high-bandwidth connectivity across distributed systems. As remote work and global collaboration become standard, NaaS will play a key role in enabling flexible, secure, and resilient enterprise networks.