Top reasons for implementing NaaS

By Cathy Won, Consultant with eTeam, HPE Aruba Networking Contributor

In a recent IDC NaaS survey¹, sponsored by HPE, 71% of respondents agree or strongly agree as-a-service (aaS) consumption models offer better IT agility compared to traditional consumption models. Typically, flexible consumption, also known as paying based on usage, has often been touted as the top reason for implementing aaS today, whether for storage or computing. However, the results from the IDC survey revealed an interesting insight when it comes to network as a service (NaaS) implementations.

The survey found that “flexible financing” and “keeping pace with technology” are the top catalysts for implementing NaaS by IT executives/directors who have either installed or are very familiar with the NaaS landscape. Flexible financing is defined as paying via subscription, having limited capital resources, shortening planning cycles, and dealing with a dynamic business. Given what we’ve heard from customers in the past two years, it is no surprise that organizations are prioritizing increased predictability and cost control. New means of providing better predictability are helping organizations navigate this dynamic and challenging business climate.

These needs for improved predictability underscore the findings that “flexible financing” was chosen by a 4:1 margin in lieu of paying based on a usage metric. Until now, it has been a common belief that flexible consumption is the predominant rationale for aaS deployments.

To further substantiate the reasoning behind flexible financing over flexible consumption pricing, the respondents agreed that eliminating up-front CapEx and easing network budgeting are key components in their decision-making process. The historical belief that flexible consumption is a top driver for NaaS adoption seems to have changed, as organizations look beyond metered pay-by-use pricing. The need for more agility to support continually changing business dynamics with a predictable and streamlined budgetary process points to the preference for the flexible financing NaaS model.

“Keeping pace with technology” proved to be equally important as the other top catalyst for NaaS. In the survey, respondents showed concern that rapid advancements in network technology make it difficult for staff to keep pace with their training needs. Other challenges included keeping legacy applications securely connected as the network infrastructure modernizes.

So, is it a surprise that the leading catalysts for NaaS today are flexible financing and keeping pace with technology? Read about this key finding and more in the 2023 IDC NaaS Enterprise State of the Market: As Adoption Continues, Benefits of As-a-Service Models Crystallize. As the changing macroenvironment drives transformation in how organizations deliver critical IT services, new options for implementing network infrastructures through NaaS are continuing to gain momentum.

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¹Source: IDC White Paper sponsored by HPE, Enterprise NaaS State of the Market: As Adoption Continues, Benefits of as a Service Models Crystalize Doc#US50530723, April 2023