Instead of purchasing and maintaining expensive hardware, organisations can now access networking infrastructure on demand, paying only for what they need, when they need it. But is this a passing trend, or does it mark a change in how networks are designed and delivered?

Shifting to a service model

For decades, enterprise networks have relied on hardware heavy, capital-intensive models. Organisations invested in routers, switches, firewalls, and complex configurations, all managed by in-house IT teams or outsourced to third parties. But as digital transformation accelerates, and we face a shortage of skilled networking professionals, companies are questioning whether they need to own their networking equipment at all.

NaaS introduces a cloud based, consumption model which moves networking from a capital expense (CapEx) to an operational expense (OpEx). Instead of purchasing and maintaining networking infrastructure, businesses can subscribe to services that provide connectivity on demand. This is especially useful for companies adopting hybrid or cloud-only strategies, as NaaS supports integrations between cloud and on-premise resources.

It offers a compelling alternative, delivering on-demand scalability, automated updates, and streamlined management. The model is still maturing, but it reflects the success of cloud computing where organisations are increasingly prioritising agility, cost efficiency and simplified operations over outright ownership. With NaaS, businesses can deploy network resources faster, scale up or down as needed, and reduce the complexity of managing hardware across multiple locations.

What’s driving the adoption of subscription-based networking?

There are several factors making NaaS an attractive proposition. One of the most significant is the growing demand for flexibility. Traditional networking models often require upfront investments and long-term commitments, which are restrictive for organisations that need to scale their infrastructure quickly or adapt to changing needs. In contrast, a subscription model allows businesses to pay only for what they use, making it easier to adjust capacity and features as needed. Cost efficiency is another big driver. With networking delivered as a service, organisations can move away from large capital expenditures toward predictable, operational costs. This helps IT teams manage budgets more effectively while reducing the need to maintain and upgrade hardware. It also enables companies to access new technologies without costly refresh cycles.

Security and compliance are becoming increasingly complex, especially for companies handling sensitive data. NaaS solutions often come with built-in security updates, compliance tools, and proactive monitoring, helping businesses stay ahead of emerging threats. Instead of managing security in-house, IT teams can rely on service providers to ensure their networks remain protected and up to date.

Additionally, the rise of cloud computing and hybrid work has accelerated the need for more agile and scalable networking solutions. As businesses adopt more cloud-based applications and support a distributed workforce, they require networks that can provide seamless connectivity across multiple locations. Subscription-based networking offers an efficient way to manage these demands, ensuring reliable performance without the hassle of traditional infrastructure management.

How the market is responding

Enterprises and public sector organisations are beginning to recognise the value of NaaS. In the UK, Digital Health and Care Wales recently issued a contract notice for a NaaS solution, signalling growing interest in this model. Analysts also predict that as NaaS offerings mature, they will play a more significant role in procurement frameworks and IT strategies.

Some industries, such as healthcare and finance, have been cautious in their approach due to regulatory concerns and existing infrastructure investments. However, as the benefits of subscription-based networking become more evident, adoption is likely to accelerate. Especially as it offers organisations a way to quickly respond to industry changes or unforeseen challenges. Whether that’s adapting to sudden spikes in traffic, new regulatory requirements or integrating emerging technologies, a subscription-based model ensures that network resources can scale dynamically. NaaS also allows companies to test new innovations, deploy applications, or expand to new locations without the limitations of legacy infrastructure, helping them stay ahead.

The road ahead

While NaaS presents clear advantages, it’s not a one-size-fits-all solution. Businesses need to assess whether a subscription-based model aligns with their specific needs, taking into account security requirements, compliance considerations, and existing investments.

For many, the transition to NaaS will be gradual, starting with hybrid approaches that blend traditional and as-a-service models. Over time, as confidence in the model grows and providers refine their offerings, NaaS may become the default approach to enterprise networking.

Subscription-based networking represents a significant evolution in how organisations build and manage their IT infrastructure. Much like the shift to cloud computing, it offers a more agile, cost-effective way to meet today’s digital demands. While traditional networking won’t disappear overnight, the flexibility and scalability of NaaS suggest that a future where networking is consumed as a service, rather than owned as an asset, is well within reach.

Justin Day is CEO and Co-Founder of Cloud Gateway

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