What is Network as a Service? NaaS Meaning, Examples, and Benefits

5G, AI, and IoT are changing the telecom industry, creating new business models and pushing companies to be more agile in testing and launching new products. But there’s a significant roadblock that prevents companies from taking advantage of these opportunities. It’s outdated operational and business support systems (OSS/BSS). 

These legacy platforms tightly connect telecom services, technologies, and networks, preventing the quick roll-out of new products. But what’s more, outdated OSS/BSS systems rely heavily on manual service design, activation, and management processes, allowing only limited automation. To deal with this, network engineering and operations teams have to create manual procedures, which over time transform into a pile of undocumented tribal knowledge inside the company. Finally, the entire network depends on several team members who are the only ones able to handle the system. 

To break free from these constraints, service providers need a more flexible and modern approach to network management. This is where Network as a Service (NaaS) and its underlying technology, Software Defined Networking (SDN), come into play. At Flyaps, we’ve been building complex custom telecom solutions for worldwide providers like Yaana and Netspark IP & Telecom since 2013 and have practical know-how in this domain. In this article, we’ll dive into what NaaS and SDN are, how they function, and why telecom companies should consider adopting NaaS. But first, what makes OSS/BSS such a problem for telecom? Here’s the answer. 

Why legacy OSS/BSS can’t keep up with telecom needs

The main issue with legacy OSS (Operations Support Systems) and BSS (Business Support Systems) is their deep integration with network architectures. These systems were designed for traditional telecom infrastructures where every function is tied directly to the network. Such a firmly connected OSS/BSS architecture helps companies quickly launch new products, but it also causes significant long-term issues. 

Problem #1: The need for a large team of internal and external staff

Managing legacy OSS/BSS is a resource-intensive task that requires a large team of both internal and external specialists. For instance, each product launch or network change requires custom integrations, which must be handled by specialized personnel. This not only increases operational costs but also complicates project management, slowing down the adoption of new technologies.

Problem #2: High software integration and maintenance costs

Apart from retaining a large team of experts, telecom companies must also invest significant sums into maintaining legacy OSS/BSS. Analysys Mason reveals that telecom providers have spent $20.3 billion on BSS networking services in 2022, which is $800 million more compared with 2021. The costs are increasing each year as the systems become more complex to maintain. Such financial burden makes it difficult for companies to invest in new technologies or focus on improving the quality of their services.

Problem #3: Expertise lock-in

As we’ve already mentioned, legacy OSS/BSS require manual practices for service management. Due to that, developers have to create their own ways to improve the system, often without documenting these changes. If these experts leave, the company will be left with a system that no one can understand and manage. This, in turn, can lead to numerous drastic consequences, including the risk of extended system downtimes — when no one knows how to fix the problem, services can be offline for hours or even days, affecting customer satisfaction and revenue. And in the worst-case scenario, mismanagement of the system could result in a complete loss of valuable data. 

Problem #4: Scalability issues with 5G

Another big challenge for legacy OSS/BSS is the surge in network traffic that comes with 5G. Legacy systems weren’t built to handle the needs of modern networks, especially when combining multiple services like voice, data, and video. The most important thing for new 5G services is real-time data processing and decision-making with very low delays. Unfortunately, traditional OSS/BSS aren’t fast or flexible enough to meet the real-time, high-speed demands that 5G requires.

Let’s conclude why OSS/BSS can pose problems for telecom. 

To solve these problems and become more agile, telecom service providers need an OSS/BSS transformation and a modern approach to network management. This involves the implementation of NaaS, which allows telcos to separate products from the technology and network assets. But before we dive into details, let’s cover what Network as a Service is and what exactly it offers to telcos.  

What is Network as a Service (NaaS)?

Network as a Service, or NaaS, is a new approach in cloud computing that leverages SDN-enabled, cloud-centric solutions and replaces the traditional hardware-focused and fixed-cost methods of building and managing networks.

At the same time, NaaS is also a flexible and cost-effective business model that provides network services for businesses on-demand, much like how Software as a Service (SaaS) operates. With NaaS, companies that occasionally experience traffic spikes, for example, during a product launch, can quickly scale up their network resources without purchasing and setting up new hardware. Once the traffic returns to normal, they can scale back down, saving on costs and avoiding the hassle of managing extra equipment. This flexibility allows businesses to easily adapt to changing needs.

Apart from NaaS, you might have heard about managed Network as a Service. What is it and how does it work? Here’s a brief overview.

Managed Network as a Service: meaning and benefits

Managed Network as a Service takes the concept of NaaS further by having service providers handle the entire network’s operation, maintenance, and management on behalf of their customers. Using this model, businesses no longer need to worry about the complexities of network management. Instead, they can rely on their NaaS provider to ensure that the network runs smoothly.

The benefits of managed NaaS include:

• Reduced operational costs. Businesses no longer need to invest in hardware, software, or specialized staff to manage their networks. 
• Simplified management. The NaaS provider takes care of all technical details, allowing businesses to focus on their core functions. 
• Faster time to market. The network can be quickly reconfigured or scaled to meet new demands without the delays of traditional network management.

Now that we know what NaaS is and what managed Network as a Service can offer, let’s see what exactly differentiates NaaS from traditional OSS/BSS.

NaaS vs OSS/BSS 

Unlike traditional OSS/BSS systems, which are directly linked to physical hardware, NaaS takes a different approach. It separates network management from the hardware by using model-driven abstraction and open APIs. This means that all network functions are presented through a unified service catalog.

First, it allows them to quickly adapt to new technologies and market demands without being held back by physical infrastructure limitations. Then, managing and scaling their services becomes much easier because they can do it all through a single platform, rather than juggling multiple systems. Finally, NaaS allows providers to automate routine tasks and reduce the need for manual intervention. This results in fewer errors, faster deployment, and less time spent on troubleshooting and maintenance. 

Take a look at this comparative table to see how NaaS is different from OSS/BSS: 

With that covered, let’s see some of the main NaaS providers and what they offer. 

Top 3 NaaS Providers

Here’s a look at three leading Network as a Service providers, with a brief overview of their features and benefits.

Perimeter 81 by Check Point

Perimeter 81 delivers a comprehensive cloud-based platform that integrates network and security services into a unified offering. This includes VPN alternatives, firewall-as-a-service, secure web gateway, and Zero Trust Network Access.  On top of that, their global Backbone network provides high-performance connectivity with extensive geographic coverage, ensuring reliable and secure network access across various locations.

Backbone includes features like:

• VPN alternatives for secure remote access without traditional VPN setups.
• Built-in firewall and other security measures to protect against threats.
• Centralized management for overseeing and configuring network services.

Cisco Plus  

Cisco Plus NaaS solution combines the company’s two main services: Cisco Plus Hybrid Cloud and Cisco+ Secure Connect Now. While Cisco Plus Hybrid Cloud integrates on-premises data centers with cloud resources, Cisco+ Secure Connect Now focuses on delivering secure, reliable network access. It combines secure Internet access, threat protection, and Zero Trust Network Access to ensure safe connections and data protection across various network environments.

Its key benefits include:

• Hybrid cloud integration for connectivity between data centers and cloud services.
• Edge computing to speed up applications and minimize latency by handling tasks close to the source of data.
• Security features such as real-time threat detection, firewall protection, and secure network access.
• Single interface for monitoring and managing network services and handling administrative tasks.

Megaport MCR 

Megaport’s MCR platform facilitates on-demand cloud connectivity and private peering between cloud providers. It operates across global data centers, offering efficient data routing and minimal latency.

Here are the Megaport’s key benefits:

• Cloud connectivity for direct connections between cloud providers without physical infrastructure.
• Multi-cloud support that enables hybrid cloud setups and direct cloud-to-cloud links.
• High-speed options to ensure connectivity speeds range from 1 to 10 Gbps.

Now let’s turn to the practical value of NaaS and see its benefits on the examples of real-life companies. 

Network as a Service examples: how NaaS helps businesses reduce costs and improve connectivity

Many leading companies have already recognized the value that NaaS can bring to their networks and started actively implementing it. Here are 3 NaaS examples that showcase the practical benefits of this approach. 

Case #1: Bayer adopts NaaS to support digital business transformation

Pharmaceutical company Bayer adopted NaaS to enable easier and cost-effective network management. 

As Bayer continued to move to a cloud-first, digital business model, the company decided to build a global network environment. Their goal was to develop a secure, stable and flexible network platform and support ongoing digital business transformation. For this, Bayer used NaaS to create a next-generation network that could easily scale and adapt to the company's growing needs, ensuring secure and reliable global connectivity. As a result, NaaS allowed Bayer to deliver managed network services to over 700 sites in 91 countries around the world and create a more resilient and responsive network. 

Case #2: Bertelsmann solves the problem of fragmented network

Bertelsmann, a global media company, is another example of NaaS in action. 

The company suffered from a fragmented corporate network with more than a hundred vendors and constant seasonal traffic spikes that affected their infrastructure performance. To change it, they decided to re-establish corporate IT and connect their units, from customer interaction to media services, across multiple locations. For that, Bertelsmann turned to NaaS. The company implemented a software-defined wide area network (SD-WAN) using Cisco iWAN, which allowed for application-aware routing and optimized bandwidth usage. Additionally, they deployed Secure Cloud Interconnect (SCI) and Virtual Network Services (VNS) to facilitate secure and scalable cloud access across multiple locations. By adopting NaaS, Bertelsmann has doubled its North American business capacity and can now seamlessly meet seasonal demand fluctuations and. 

Case #3: Tate & Lyle implements NaaS to support business growth

Tate & Lyle, a global food ingredients company, struggled to keep their business operations running with their outdated legacy network, which hindered their growth. 

The company needed a flexible, transport-agnostic infrastructure to add new endpoints across remote locations in 28 countries, including a plant deep in the Brazilian jungle.

By adopting NaaS through a Managed SD-WAN solution (via Versa Networks), Tate & Lyle centralized its network management, enabling seamless endpoint deployment and configuration. This new approach improved application performance, automatically routed traffic based on network quality, and helped the company control costs by efficiently using redundant network resources, all while supporting the company’s global growth.

Now that we’ve examined how leading companies adopt NaaS, let’s consider some main NaaS applications. 

Main NaaS applications

Here are some of the key areas where NaaS is making a significant impact.

Network slicing in 5G networks

One of the most prominent applications of NaaS is network slicing in 5G networks. This allows service providers to create multiple virtual networks, or slices, over a single physical infrastructure. Each slice can be customized to meet specific needs, such as ultra-low latency for online gaming or high bandwidth for streaming services. 

What’s notable about this approach is the flexibility it offers. Slices can be adjusted to meet changing customer demands and provide cutting-edge services such as fraud detection monitoring, instant fleet management, drone-assisted network maintenance, smart metering, and predictive resource management. These capabilities, along with telecom-specific applications like real-time customer management, advanced policy control, online charging, and mediation, offer telecom operators a unique opportunity to unlock significantly greater value for their networks.

Simplified, on-demand deployment of VPNs

With NaaS, Virtual Private Networks (VPNs) are available out of the box, eliminating the need for complex setups and expensive hardware. Telecom providers can quickly deploy, manage, and scale VPNs as needed, adjusting capacity based on demand. This not only reduces infrastructure costs but also speeds up the entire process, allowing businesses to implement secure, reliable connections without technical complexity or large investments.

Bandwidth on demand

Another valuable application of NaaS is bandwidth on demand. Companies experiencing fluctuating traffic, for example, during a product launch or a live event, can use NaaS to boost their network capacity without permanently upgrading their infrastructure. This ensures they only pay for the bandwidth they need when needed, making it a cost-effective solution for handling peak network usage.

Such a broad spectrum of NaaS capabilities is possible thanks to its powerful underlying technology: Software Defined Networking (SDN). Let’s see how SDN works, making NaaS so flexible and effective. 

What is SDN and how does it improve network performance?

SDN changes how networks are managed and operated by separating the control plane (which decides where traffic is sent) from the data plane (which actually forwards traffic to the selected destination). This separation is key to making networks more flexible, scalable, and responsive to changing demands.

SDN architecture: how it works

At the heart of SDN lies its unique architecture, which is designed to centralize network intelligence and give service providers more control over their networks. Traditional networks rely on a distributed approach, where each network device (like a router or switch) decides how to forward traffic based on its own knowledge. In contrast, SDN centralizes decision-making in a software-based controller that communicates with all network devices.

Here’s a breakdown of the SDN architecture:

• Application layer. This is where applications interact with the network. Examples include network monitoring tools, security applications, and more.
• Control layer. The SDN controller resides here, acting as the brain of the network. It makes decisions about how traffic should be handled based on policies set by administrators.
• Infrastructure layer. This layer contains the physical and virtual devices that actually forward traffic, such as switches, routers, and servers.

The SDN controller communicates with the infrastructure layer using standardized protocols like OpenFlow, ensuring consistent and automated control across the entire network.

Types of SDN

SDN isn’t a one-size-fits-all solution. There are several different approaches to implementing SDN, each suited to different needs:

SDN benefits

SDN brings a host of features and benefits that make it a critical component for implementing NaaS:

• Simplified operations. By decoupling the control plane from the data plane, SDN centralizes network management. This simplification allows service providers to manage their networks more efficiently, reducing the complexity of manual configurations and troubleshooting. It’s especially crucial for NaaS as it allows for the dynamic provisioning and reconfiguration of network services on demand.
• Programmability and automation. One of the biggest advantages of SDN is its programmability. Service providers can use software to dynamically adjust network behavior in real time. This is essential for NaaS, where customer demands can change rapidly, and network services need to be provisioned, scaled, and modified quickly. 
• Enhanced network visibility and control. SDN provides a comprehensive, centralized view of the entire network, making it easier to monitor performance and manage resources. For NaaS, this visibility ensures that services meet the quality and reliability expectations of customers, as providers can quickly identify and address any issues that arise.
• New technologies unblocked. SDN enables service providers to support future technologies like IoT, edge computing, and AI-driven network management. As these technologies evolve, SDN ensures that the network can adapt and scale accordingly, providing the flexibility that NaaS requires.

SDN’s ability to simplify network management, automate processes, and provide real-time control and visibility is exactly what makes NaaS possible. As service providers shift towards offering on-demand network services, the flexibility and scalability of SDN will be crucial in delivering these services.

NaaS and SDN – a new era for telecommunications?

The combination of SDN and NaaS has definitely changed many rules for telecommunications service providers. If previously companies had to maintain costly unscalable OSS/BSS, now businesses can pay for networks on demand, scaling their capabilities as needed and supporting technologies like 5G, IoT, edge computing, and AI-driven network management. 

Does it mean that the future is right here, with 5G and AI changing the world? Yes and no. The final answer depends on how the industry will handle the new possibilities these technologies bring. To retain users and win in the market, CSPs need not just adjust but proactively support changes which becomes possible with a dedicated expert team that can handle complex technical challenges of telecom.

At Flyaps, we’ve been long working for the world’s leading telecom companies, building and rehauling complex solutions for global organizations. For a worldwide provider of smart compliance and national security solutions, we built a cloud-based roaming BI system that provides instant analysis of the market situation and improves forecasting, budget planning, and calculation algorithms. Moreover, we created a custom CRM/ERP solution that allowed our client, a leading telecom consulting firm, to automate back-office operations and cut the time spent on project implementation in half.

If you are searching for a reliable team that can solve the unique challenges of telecom, contact us, and we’ll be glad to help you achieve your goals.