Dell’Oro Group States Campus Network as a Service (CNaaS) Revenues Will Double in 2024

Dell’Oro Group, providing market information about the telecommunications, security, networks, and data center industries, anticipates that Campus Network as a Service (CNaaS) revenues will double in 2024 during a LAN equipment market contraction.

“Campus NaaS uses cloud-managed equipment to simplify LAN connectivity for enterprises,” said Siân Morgan, Wireless LAN Research Director at Dell’Oro Group.  “CNaaS vendors are changing the way companies consume Wi-Fi in their network, and we expect this model of service to grow faster than the overall LAN market for the next five years. CNaaS startups such as Nile, Join Digital, and Shasta Cloud have begun partnering with service providers to extend the reach of their innovative offers.”

Morgan also states, “Public Cloud-Managed LAN equipment has always grown faster than the overall LAN equipment market, but that growth differential is narrowing. The next wave of high growth in the LAN equipment market will come from CNaaS.  We’ve identified 13 vendors with CNaaS, and with the new CNaaS Service Packs that HPE has released, the company has the largest breadth of available offers.” 

Dell’Oro Group’s Campus NaaS and Public Cloud-Managed LAN report “defines the key characteristics of CNaaS and investigates the various types of services available on the market”.

Some of the highlights of the report include unit pricing for LAN equipment anticipated to go down over the next five years since lead times have now normalized. In 2023, recurring licensee revenues exceeded expectations which will add significant revenues to Public Cloud-Managed LAN and CNaaS.

The market has converged on three types of Campus NaaS options: Enabler, Turnkey, and LAN-as-a-Utility. Each version of Campus NaaS has different features and growth drivers. The CNaaS model is forecasted to grow in two specific use cases which benefit from a recurring cost structure and a fully-managed network.