Market Trends of Network As A Service Industry
Increased Adoption of Cloud Services among Enterprises to Drive the Market
- The growing use of technology and customer preference for remote data access drives the increased need for cloud-based solutions. Companies understand the cost and resource savings benefits of migrating to the cloud rather than maintaining on-premise infrastructure, leading to increased adoption among large corporations and SMEs. Cloud computing and virtualization are expected to lower software setup costs and hardware utilization during the next five years.
- According to Thales Group, more than 60% of corporate data was kept in the cloud last year, a massive increase from 30%. These trends create considerable potential prospects for manufacturers in this market, with the increasing adoption of cloud computing among organizations broadening the market's scope.
- For instance, according to Druva Inc., a company located in India, numerous companies focus on enterprise data mainly because of its substantial volume of unstructured data. According to the company, this data type is held in enterprise storage systems. Furthermore, according to the most recent Cisco Global Index, cloud data centers currently manage 94% of all computing workloads, while traditional data centers handle only 6%. This figure emphasizes the global potential for cloud-based contact center deployment in the future.
- Banking and other vital businesses are expected to embrace cloud-based service rollout rapidly. This is due to the IT industry's continued quest for simplified infrastructure and solution developers' ability to create hybrid cloud solutions by obtaining application and infrastructure components from different providers. This tendency is driving the Network-as-a-Service (NaaS) market forward.
- According to Pluralsight LLC, in 2023, 94% of organizations used cloud services for their technology initiatives. In a company survey of over 1,000 leaders and technologists across industries worldwide to find out how organizations leverage cloud computing, 70% of organizations report that more than half of their infrastructure exists in the cloud. Around 49% are actively moving more of their data to the cloud. Such data indicates a rapid adoption of new cloud services.
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North America to Occupy Significant Market Share
- The United States has developed an economy that embraces advanced technology, propelling the expansion of network automation, cloud-based services, and the Network as-a-Service (NaaS) market. IT teams are set to adopt NaaS solutions from suppliers that offer hybrid solutions, including software, cloud intelligence, and the autonomy to manage on-premise hardware in the next five years.
- As a pioneer in technology adoption, the United States is experiencing a rise in demand for enhanced network services, driven by significant growth in mobile devices. With the growth of virtualized settings such as cloud software-defined networks (SDN) and virtual network functions (VNF), various network service providers (NSPs) in the region have enabled on-demand infrastructure. However, planning and acquiring network connectivity for organizations may take time and effort, posting difficulties for businesses attempting to stay up with digital trends and function at software-driven speeds.
- The Canadian NaaS market is expanding due to new product releases, acquisitions, mergers, partnerships, and collaborations transforming the North American market. There has been a noteworthy increase in cyberattacks on IT service providers, resulting in data breaches. As a result, the Canadian Center for Cybersecurity has issued recommendations to organizations, allowing them to be more selective when picking network service providers.
- Market demand is increasing significantly as automation and linked device deployment expand. The NaaS model is especially beneficial for small firms since it allows them to delegate day-to-day equipment upkeep and focus on their key capabilities, such as customer service. Given the prevalence of small enterprises in Canada, using NaaS is projected to grow considerably in popularity soon.
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