How cybersecurity, cloud and GenAI are driving enterprises toward NaaSHow cybersecurity, cloud and GenAI are driving enterprises toward NaaS

Digital transformation has redefined how enterprises do business, as they search for ways to improve operations and better serve their customers. Organizations have modernized their networks to enable hybrid work, support cloud connectivity and lay the groundwork for new technologies such as generative AI (GenAI).

Yet, navigating an interconnected digital world remains a constant challenge. One option to help smooth the journey is Network-as-a-Service (NaaS).

Several key factors will influence the market growth of NaaS in the near future, and enterprises should take advantage of those opportunities.

The rising tide of cyber threats: Why security is a top priority

The threat of significant cyberattacks against both public and private organizations is at an all-time high, according to MEF's State of the Industry Report – SASE: Validating Cyber Defense in an Era of Unprecedented Threats, published in June 2024. The cost of these attacks is also expected to grow, with Cybersecurity Ventures predicting that cybercrime's financial impact will increase from $8 trillion in 2023 (7.7% of global GDP) to $10.5 trillion by 2025 (~9.5% of global GDP).

Several factors are driving this surge in cyberattacks, among them:

Together, these elements fuel the growing scale, complexity, speed and financial impact of cyberattacks.

In response, enterprises are prioritizing cybersecurity as a critical investment. Secure access service edge (SASE) has emerged as a key way for companies to protect remote and hybrid work models. SASE combines software-defined WAN (SD-WAN) with cloud-based security features, such as secure service edge and zero trust. Among other attributes, SASE safeguards users, devices and applications at scale, regardless of their location -- whether in public or private clouds, on-premises or across mobile and internet environments.

Cybersecurity's next phase will find enterprises evolving from secure SD-WAN to SASE and eventually adopting NaaS services equipped with integrated SASE capabilities. This will allow companies to streamline and strengthen their security deployments without requiring them to manage and maintain their own infrastructure.

Multi-cloud strategies drive agility and resilience

Cloud computing continues to be a primary driver for digital transformation across industries. Providers' platforms offer the essential infrastructure, foundations and software to modernize IT systems and streamline business operations. As a result, enterprises are seeking ways to connect with various cloud service providers. This allows them to optimize expenses, avoid vendor lock-in and ensure greater redundancy and flexibility in their cloud environments.

It's no surprise, then, that worldwide spending on public cloud services continues to grow substantially. According to mid-2024 forecasts by both Gartner and IDC, cloud spending was expected to jump 20% year-over-year in 2024, with rapid advances in AI driving the surge. Gartner predicted that worldwide public cloud services revenues would reach $675 billion in 2024 and climb another 22% to $825 billion in 2025. By 2026, 75% of organizations will adopt a cloud-based digital transformation model, according to the firm.

Generative AI: A game changer in enterprise transformation

GenAI is reshaping entire industries by automating tasks, enhancing data-driven decision-making and personalizing customer experiences. Enterprises are tapping GenAI for diverse applications like translation, content creation and product and service innovation, driving unprecedented digital transformation. Look for GenAI adoption to increase as companies look for other ways to improve their operations.

Modern NaaS: The future of enterprise networks  

Modern NaaS addresses enterprise needs for security and cloud migration by providing scalable, on-demand connectivity. It supports multi-cloud environments and high-performance AI tasks while enhancing edge computing for real-time applications.

Key NaaS benefits include the following:

MEF's 2025 NaaS Industry Blueprint outlines a path for on-demand, globally interconnected networks designed to help organizations unlock services and tap new revenue streams through federated ecosystems and standardized frameworks.

As digital transformation accelerates, enterprises require seamless, secure and scalable services to achieve their goals. Modern NaaS enables businesses to secure their networks, connect to cloud providers and use emerging tools such as GenAI.

Standardized frameworks and federated NaaS ecosystems will create globally integrated networks to fuel collaboration and help companies stay ahead in a rapidly evolving market. By aligning with these innovations, businesses can transform challenges into growth opportunities, positioning themselves for long-term success.

(Editor’s note: This article is part of our regular series of articles from the industry experts at MEF.)

Pascal Menezes, CTO at MEF, is a proven technology thought leader, sales evangelist, product manager and seasoned IP architect with decades of experience in internetworking, next-generation information systems, and communication architectures. Pascal currently serves as Chief Technology Officer at MEF. He is focused on SD-WAN, SASE, cloud scale architectures, real-time media networks, Software Defined Networks (SDN), Network Function Virtualization (NFV) and Lifecycle Service Orchestration (LSO).

See his collection of Network Computing articles here.