Campus NaaS Startups Poised to Grab Larger Share of the Pie, According to Dell'Oro Group

Public Cloud-Managed LAN Equipment Drives Up Vendor Subscription Revenue

REDWOOD CITY, Calif., Nov. 6, 2024 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, projects that Campus Network as a Service (CNaaS) startups with LAN-as-a-Utility offers will grow faster than the other types of CNaaS offers and represent a third of all CNaaS revenues by 2028.

"Startups such as Nile, Meter, Join Digital and Ramen are ramping up to deploy a significant amount of Campus NaaS equipment over the next year," said Siân Morgan, Enterprise Wireless LAN Research Director at Dell'Oro Group. These companies are adding to their portfolios with complementary products, such as 5G solutions, and working on scaling their businesses by forging partnerships.

"HPE maintains the largest breadth offers in the CNaaS Enabler category," added Morgan. "We've seen an acceleration in annual recurring revenue (ARR) in most of the major LAN vendors, especially those that have a high adoption of Public Cloud-Managed LAN solutions. The data indicates that the tides may be turning on subscription license price erosion seen over the past few years." 

Additional highlights from the Campus NaaS and Public Cloud-Managed LAN Advanced Research Report:

• The Public Cloud-Managed LAN market is expected to exceed $12 billion in 2028.
• Juniper Mist has risen to become the number two vendor in terms of Public Cloud-Managed WLAN revenue.
• After a slow start for CNaaS deployments, we are still predicting that annual revenues will exceed $940 million in 2028.
• The three types of Campus NaaS offers: Enabler, Turnkey, and LAN-as-a-Utility will be subject to different market drivers and suitable to different verticals, and are expected to grow at different rates.

About the Report

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. It quantifies both the CNaaS and the Public Cloud-Managed LAN markets in terms of revenues and shipments, and provides forecasts for the next five years. The report compares CNaaS and Public Cloud-Managed LAN revenues to overall campus LAN equipment sales, including Wireless LAN and Campus Ethernet switching manufacturer revenues. Also included is a summary of some of the available vendor offers and a regional breakdown of the market opportunity. For more information about the report, please contact us at [email protected].

About Dell'Oro Group

Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit https://www.delloro.com.

SOURCE Dell'Oro Group