Siân Morgan

Research Director

Manufacturer revenue from Public Cloud-Managed WLAN and Switching has been growing faster than revenue from premises-managed solutions for the past 10 years. In addition, license revenue associated with Public Cloud-Managed solutions has been outpacing the market, driving up prices. A growing acceptance of cloud-based solutions has increased the adoption of Public Cloud-Managed equipment, which has pushed vendors’ ARR (Annual Recurring Revenue) to record high-levels. The predicted growth in Public Cloud-Managed adoption over the next five years will broaden the market for feature-rich, cloud-based LAN services.

The transition to a hybrid workforce, the increased complexity of the LAN, and the pending AI revolution, have led to a significant increase in the number of Enterprise Campus services incorporating the NaaS (Network-as-a-Service) label. However, there are multiple versions of NaaS out there. With each variation having different commercial, financial, and technological implications, it’s a complex landscape to navigate.

In 2025, revenue from the sale of enterprise LAN networking equipment is expected to return to growth after the digestion period of 2024.  New entrants have introduced Campus NaaS (CNaaS) offers, aiming to steal revenues from incumbent LAN manufacturers.  Incumbent vendors are looking to shore up their share, expand the overall market, and boost cloud-managed sales with their own versions of CNaaS. The five-year forecast of the three types of CNaaS offers shows accelerating revenue growth.

In this ARR, we assess the market for Public Cloud-Managed LAN equipment (including Switching and WLAN) as well as the market for Enterprise CNaaS. We also investigate the following key questions:

  • How do the different CNaaS offers on the market differ?
  • What is the total addressable public cloud-managed Enterprise LAN market?
  • What is the CNaaS market worth today and how will revenues change over the next five years?
  • What are the inhibitors and catalysts for Enterprise Campus NaaS growth?
  • Who are the key market players?