What Is a Network-as-a-Service (NaaS) Model and How Does It Work?

An institution can scale up its network based on the number of enrolled students and those using it on campus at a given time. Instead of paying for peak volume, the institution can select a subscription-based model. This model allows them to manage the ebbs and flows in network usage, from holidays to summer breaks.

Or, a big university may choose to build its own private 5G network. It may work with the service provider to manage the network or manage it on their own. The latter involves coordinating applications such as security, lighting, and energy management.

City governments can partner with a service provider to bring smart cities to life. Consider street lighting. With NaaS, 5G, and the Internet of Things (IoT), streetlights detect an approaching vehicle or person in real time from their mobile device. When they are in proximity to the light, the intensity increases. After they pass, the lights dim again. This helps the city maintain safety, save money, and reduce energy waste.

Companies that manage a fleet of trucks can track their vehicles’ oil, temperature, and pressure with NaaS, 5G, and IoT. Compared to previous technologies, 5G increases the throughput and decreases the delay in data transmission. The enterprise is able to prioritize the monitoring of critical assets. It receives data in real time to stay ahead of maintenance issues and avoid costly future breakdowns.

Another use case is blockchain. Companies can use blockchain coupled with NaaS to control the monitoring of a product. This increases the frequency and precision at critical junctures of the product’s origin — from the shipping container on a vessel to the truck that takes it to the distribution center.

Imagine a drone that continuously surveys a beach. It streams images back to an application running on a multi-access edge computing (MEC) node at the cell tower. The edge application analyzes the images. Whenever it detects a shark, it sends an alert to the lifeguard at the local beach. By saving seconds from previous architectures, this implementation can save lives.

Service providers unlock the true potential of NaaS when they open the network to a developer community and partners. But that means they have to change how they think, act, and work.

Cultural barriers often stand in the way. This is because service providers are used to having tight control over the network. The idea of building a platform is also elusive — they don’t think of the network as a platform. And some organizations would rather see others try it first.

That’s why service providers must identify a strong leader with a vision who can articulate the value of NaaS to everyone — from board members to employees with boots on the ground. This leader should create a safe space for experimentation and innovation. And, they should understand the importance of opening up the network to their own developers as well as third parties.

A service provider can be an aggregator of apps, an innovator of apps, or both. As an aggregator, they can resell existing services, like network management apps or collaboration tools. Internal developers can partner with OEMs to create apps or even extend their developer network to include an ecosystem of value-added developers.

Cloud-native architectures are critical. They are containerized, agile, and modular with an extended digital BSS layer. This is what enables flexibility and innovation for application development. The BSS layer aggregates data and extends the network to developers to create applications that lead to new revenue streams.

How is NaaS delivered? Service providers need to make network functions available through APIs. Consumption-focused, industry-standard APIs through associations like TM Forum expose the network safely and securely. These APIs include:

• Service qualification API: This is a qualification check that determines if a network service can be delivered at a particular location.
• Service ordering API: This API enables seamless ordering and provisioning of your service. A service order is automatically created and placed in your downstream network systems.
• Usage consumption API: This API helps you retrieve and leverage customer insights based on their network usage data.

Governance and close management of these APIs are critical. Ensure your deployment strategy includes an API management layer to control and monitor access.

To get the most out of NaaS, service providers need to stand up a marketplace. They can do this by creating a portal for partners or an ecommerce storefront for consumers.

But that’s not all. Digital self-service is essential. Service providers can use automation to streamline the commercial and provisioning processes. This makes it easy for customers to configure, price, and quote (CPQ) services. Once the order is placed, order management capabilities fulfill the service with zero-touch provisioning. Service providers should also embed chatbots, which use AI to answer common questions. If the chatbot is unable to provide an answer, they can escalate it to an agent to assist the customer. (Hint: It’s a good idea to connect service with commerce data to deliver the best customer experience.)

Don’t forget about continuous recruitment and education efforts. Nurture relationships with new and existing partners and developers by establishing an ecosystem. Spend time teaching developers about the value of the network, networking elements, and basics like 5G slicing. This is what Apple, Google, and Salesforce do to teach developers about the value of the platforms. The result is expanded product and service offerings.