LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global network as a service (NaaS) market to grow at a CAGR of over 42% during the period 2018-2022, according to their latest report.
One of the major trends impacting the growth of the market is the penetration of cloud computing, which is at an all-time high. The adoption of cloud computing is increasing around the world because of its features such as cost-effectiveness, agility, and superior functionality. The adoption of cloud computing is anticipated to continue to increase during the forecast period. The rise in the penetration of the cloud phenomenon is a major trend that affects the adoption and proliferation of NaaS. NaaS is expected to find increasing acceptance when compared with traditional networking infrastructure due to its inherent features, including cost-effectiveness, security, compliance with standards, and ease of use. The traditional networking infrastructure, which is installed on-premises incurs high operational and maintenance costs for users. Cloud computing solutions solve most of these problems while allowing enterprises to focus on their core competencies.
This report is available at a USD 1,000 discount for a limited time only: View market snapshot before purchasing
Save more with Technavio. Buy 2 reports and get the third for FREE: View all Technavio’s current offers
In this report, Technavio analysts highlight the growing acceptance of OPEX model as a key factor contributing to the growth of the global network as a service market:
Growing acceptance of OPEX model
With the increasing adoption of cloud computing and virtualization technology, enterprises and industries are switching from the CAPEX model to the OPEX model. This has increased further due to the tightening of IT budgets and streamlining of processes. This shift to the OPEX model allows enterprises to focus more on their business and strategic goals, rather than on networking equipment and infrastructure. Besides, cloud-based networking services are based on the pay-per-use or the pay-as-you-go model. In this model, buyers pay only for the resources and capacity used.
According to a senior analyst at Technavio for IT professional services, “Traditional networking implementation is based on high upfront capital expenditure. The OPEX model is a more cost-effective and flexible proposition that is highly attractive owing to its inherent operational efficiencies. The OPEX model reduces the cost of ownership and maintenance of the entire networking infrastructure drastically. The in-house costs are reduced, and operational limitations are eradicated with optimal resource allocation.”
Looking for more information on this market? Request a free sample report
Technavio’s sample reports are free of charge and contain multiple sections of the report such as the market size and forecast, drivers, challenges, trends, and more.
Global network as a service market segmentation
This market research report segments the global network as a service market into the following end-users (IT and telecom, BFSI, manufacturing, and healthcare) and key regions (the Americas, APAC, and EMEA). It provides an in-depth analysis of the prominent factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.
Of the four major end-users, the IT and telecom segment held the largest market share in 2017, accounting for more than 25% of the market. However, the market share for this application is expected to decrease by nearly 5% by 2022. However, this segment will dominate the market throughout the forecast period.
The Americas accounted for around 46% of the global NaaS market in 2017. The major factors that are responsible for the dominance of the Americas are the technological maturity in terms of data center and network infrastructure and the massive size and growth of the industrial and private sectors. The accelerated technology adoption, increased focus on IT productivity, and service delivery optimization are some of the other reasons contributing to the growth of the market in this region.
Personalize this report according to your needs: Request a customization
Technavio’s analysts and industry experts will work directly with you to understand your requirements. We offer USD 1,000 worth of FREE customization at the time of purchase
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 10,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
If you are interested in more information, please contact our media team at firstname.lastname@example.org.