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Tech vendors have different definitions for their Network as a Service (NaaS) offerings, making it confusing for tech shoppers. Gartner defines NaaS as a service that converts on-premises infrastructure into an on-demand service that can scale up or down according to enterprise needs. However, Gartner analyst Jonathan Forest believes that this model will not dominate the market in the near future but will be one of many consumption models. Gartner predicts that NaaS will become a viable option for small to midsize companies with limited IT staff and resources in the next two to three years.

Investors are optimistic about the future of NaaS and believe that it will eventually become a multibillion-dollar market. This is evidenced by the recent 5 million investment round for Nile, a startup founded by former Cisco CEO John Chambers and former Cisco chief development officer Pankaj Patel. Nile aims to bring automation and simplicity to networking, and its customers include enterprises with 500 to 5,000 employees.

Nile’s customer reference, SDI, a supply chain software maker, chose Nile to manage its LAN infrastructure. The installation process was simple, and Nile now handles network management while SDI’s IT staff monitors the system through a customer portal. Nile uses synthetic monitoring to detect any network issues and employs encryption and authentication technologies to ensure secure connectivity.

Nile’s service has helped SDI reduce the total costs of having a wired and wireless LAN by a third. Nile charges a monthly fee for its service, eliminating the need for upfront capital expenditures.

While NaaS offerings may be more expensive for enterprises that upgrade networking gear every seven to nine years, Nile’s model presents cost-saving benefits for companies. However, Nile currently doesn’t offer a service for smaller offices, but SDI is waiting for them to release a smaller footprint option.

Lumen Technologies has also entered the NaaS space with its self-service internet product. Although it doesn’t meet Gartner’s definition of NaaS, it allows organizations to quickly add internet connectivity to new offices. Lumen’s product offers flexibility and control to customers, with pricing options based on usage.

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