SD-WAN vs. NaaS: What Are the Differences?

NaaS offers an alternative approach to network management by allowing enterprises to subscribe to network services rather than managing them in-house. The model offers agility, scalability, and cost-efficiency.

NaaS provides rented network infrastructure, management tools, and services from a centralized platform. Despite the vision for NaaS, it’s worth noting that the shift seems gradual. The market is still evaluating potential benefits and integration challenges.

However, both technologies have a common driver. Which is the need for more dynamic network solutions. Modern organizations have to support digital business, remote work environments, and increased security demands.

NaaS adoption may be especially appealing to network practitioners who are looking to overcome particular traditional WAN limitations. It’s helpful in eliminating inflexibility and high costs—plus, supporting evolving network edges.

At the same time, transitioning to NaaS involves navigating several challenges, including: security concerns, dependency on service providers, and integration complexities with existing IT ecosystems.

SD-WAN remains a tested, essential solution for businesses that need robust, configurable network solutions. Its ability to prioritize traffic and enhance connectivity without reliance on a single service provider makes SD-WAN indispensable for the long term.

What is SD-WAN?

SD-WAN, or software-defined wide area network, is a networking technology that uses software-defined networking (SDN) principles to enhance the management and performance of wide area networks.

The technology facilitates more efficient data, application, and user connectivity across multiple locations. By centralizing control and visibility, SD-WAN boosts performance and reliability. It also simplifies the management of network complexities.

SD-WAN operates using virtualized services that can cover large geographical areas.

SD-WAN uses different types of connections, like MPLS, broadband, LTE, and VPNs, to easily connect branch offices and remote users to corporate resources.

Unlike traditional WANs that rely heavily on manual configurations and physical hardware, SD-WAN offers a more flexible solution. It enables dynamic traffic management and network adaptation through centralized software controls. This results in majorly improved speed, security, and network management efficiency.

Common use cases for SD-WAN include:

• Connecting branch offices
• Remote sites
• Optimizing cloud application performance
• Improving connectivity for IoT devices
• Providing secure, scalable network solutions for businesses of all sizes

What is NaaS?

Network as a service (NaaS) is a cloud-delivered network infrastructure service that provides a flexible way to access and manage network services.

With a cost-effective, scalable, and subscription-based model, NaaS allows organizations to operate more agilely, accelerate innovations, and improve performance. It’s delivered via managed service, PaaS, or IaaS.

NaaS originally emerged in response to the need for cost-effective, flexible network infrastructure. In the past, enterprises had to invest heavily in physical networking infrastructure and specialized IT personnel—which are expensive and time-consuming.

In essence, NaaS works by eliminating the need for organizations to procure, deploy, and manage network infrastructure. Businesses purchase a subscription that provides access to the provider's network resources.

A NaaS subscription can include: managed services, rented hardware, or outsourcing complete operations such as deployment, management, and day-to-day operations.

Common use cases for NaaS include:

• Overall outsourced network operations
• Scalable bandwidth on demand (BoD)
• Automatic failover and disaster recovery
• Application prioritization via bandwidth management
• Remote network management via NFW

What are the differences between SD-WAN and NaaS?

While both SDN and SD-WAN are software-defined networking technologies, they differ in network architecture, deployment scenarios, management and control, security features, and programmability.

The differences between SDN and SD-WAN make each technology suitable for specific use cases and organizational needs.

Architecture

SD-WAN architecture uses a centralized control function to manage traffic across wide area networks, utilizing a combination of connections to optimize and secure data flow. The architecture focuses on improving connectivity by applying software-defined networking principles directly to WAN connections.

In contrast, NaaS provides a complete network solution delivered as a service from the cloud which includes various networking tools and services.

Management

SD-WAN gives organizations direct control over their networking paths and policies with tools to adjust settings based on network conditions in real time. The hands-on approach works well for organizations who need to maintain high levels of control over network traffic.

NaaS, however, abstracts much of the network management complexity by outsourcing it to service providers. That way, businesses can focus on core functions without the need to manage day-to-day network operations.

Scalability

SD-WAN provides scalable solutions, but usually requires additional hardware or software configuration as network demands grow.

NaaS offers scalability as a key feature. Customers can easily expand or reduce services based on current business needs—but without the logistical challenges of deploying new hardware or extensive configuration. All thanks to its cloud-based model.

Cost structure

The cost structures of SD-WAN and NaaS are fundamentally different.

SD-WAN may involve upfront costs for hardware and software, plus ongoing expenses for maintenance and network management.

NaaS, on the other hand, typically operates on a subscription-based model that can lower initial capital expenditures and spread costs over time. This model works well for organizations who are focused on reducing large capital investments.

What are the similarities between SD-WAN and NaaS?

Integration with cloud services

Both SD-WAN and NaaS use cloud-based technologies to enhance network flexibility and scalability.

SD-WAN simplifies WAN management by using software to control the flow of traffic across a wide area network. High-end SD-WAN solutions integrate with cloud computing services to optimize connectivity and performance.

Similarly, NaaS provides network services through a cloud computing platform. That allows businesses to consume networking infrastructure on-demand without the headaches of traditional network management.

Focus on security

SD-WAN and NaaS both strongly emphasize network security.

SD-WAN integrates security functionalities directly into the network fabric. Features like encryption, firewalls, and microsegmentation protect data in transit across various connections.

NaaS focuses on delivering network connectivity and functionality as a service. Security features might be included as part of the service offering, but the specific features and level of control can vary depending on the provider.

Support for modern networking needs

Both technologies support the evolving requirements of modern enterprises: remote work, increased data consumption, etc.

SD-WAN and NaaS offer solutions that address the need for more dynamic, flexible, scalable network infrastructures.

And they both support distributed workforces with high volumes of cloud-based traffic. Which makes both technologies suitable for businesses looking to modernize network operations.

Further reading:

• Branch Network Security: Securing Branch Networks with SD-WAN
• What Is the Cloud-delivered Branch?

Will NaaS replace SD-WAN?

No, NaaS will not replace SD-WAN. Instead, the relationship between SD-WAN and NaaS is evolving into a more integrated solution.

Right now, organizations are interested in NaaS largely because of its flexibility and comprehensive service model. At the same time, SD-WAN remains a crucial component within many NaaS offerings, often provided as a managed service.

Hybrid adoption suggests that while NaaS may change how SD-WAN is consumed, it doesn’t eliminate the need for SD-WAN technologies. Companies are increasingly opting for NaaS platforms that include managed SD-WAN services, allowing them to enjoy the benefits of both technologies.

The integration of SD-WAN into NaaS solutions will likely continue to grow, facilitated by the broader adoption of secure access service edge (SASE) frameworks.

Further reading: SD-WAN vs. SASE: What’s the Difference?

How can SD-WAN and NaaS work together?

Today, SD-WAN and NaaS are complementary solutions that can drive business value when integrated effectively.

As mentioned, SD-WAN focuses on optimizing wide area network connections. It provides enhanced control and visibility across multiple locations. It also addresses specific connectivity issues like network congestion and packet loss. Which all adds up to reliable, secure connections that are necessary for business operations.

On the other hand, NaaS offers a broader, more flexible approach to network management. It provides a platform for consuming network infrastructure as a cloud-delivered service.

Which means:

Together, SD-WAN and NaaS can offer a strong framework for streamlining network operations.

For example: By integrating SD-WAN's detailed traffic management capabilities with NaaS's scalable infrastructure model, businesses can achieve a responsive, adaptable network environment. The integration would allow for the intelligent routing of network traffic, plus the rapid scaling and deployment of network resources as needed.

What is the future of SD-WAN and NaaS?

The future of SD-WAN and NaaS as a combined solution is unclear. On its own, the SD-WAN technology market is growing productively and continues to answer the demand for unified networking and security capabilities. The future of NaaS, however, isn’t as well-defined. The landscape continues to evolve, with new solutions emerging frequently.

The SD-WAN market is experiencing rapid growth and maturation because of the increasing demand for flexible, cloud-based networking solutions.

"By 2026, 60% of new SD-WAN purchases will be part of a single-vendor secure access service edge (SASE) offering, up from 15% in 2023. By 2026, generative AI technology embedded in SD-WAN offerings will be used for 20% of initial network configuration, up from near zero in 2023."

-Gartner, Inc., 2023 Gartner® Magic Quadrant™ for SD-WAN

According to the 2023 Gartner^® Magic Quadrant™ for SD-WAN, the SD-WAN market is forecast to generate a compound annual growth rate (CAGR) in end-user spending of 14.6% from 2022 through 2027.

Not to mention, the integration of advanced technologies like artificial intelligence (AI) and machine learning (ML) into SD-WAN solutions is expected to enhance network management, uptime, and performance.

Where NaaS is concerned, AI-integrated solutions continue to crop up, often emphasizing network automation and self-healing capabilities.

Software-defined networking within the NaaS model, referred to as SDNaaS, is another industry trend. The industry may see specialized NaaS solutions emerging to meet the unique requirements of various industries, including healthcare, warehousing, smart factories, and manufacturing.

On the other hand:

“Although NaaS package offerings are still in a nascent phase (see What Is NaaS, and Should I Adopt It?), we believe that product managers should focus on these four major customer personas and the values that these personas care about,” notes Gartner (Early NaaS Pricing Lessons to Drive Adoption, April 27, 2023, Marissa Schmidt, Naresh Singh ).

So, NaaS remains an intriguing but developing technology. Time will tell how it will shape the future of network services.

Also:

“There is much commercial hype in the industry around network as a service but with significant differences on what it means. Communication service providers that sell enterprise network services cannot neglect this trend, and need to build and differentiate their NaaS offerings,” Gartner reported (Market Trend: CSP NaaS Offerings for Enterprise Networking, June 13, 2024, Gaspar Valdivia, Ted Corbett).

Though no one knows for sure how NaaS will evolve, its integration with SD-WAN could lead to more sophisticated, industry-specific solutions that apply the strengths of both technologies.

For example: The merging of SD-WAN's robust connectivity options with NaaS’s cloud-driven scalability could offer businesses a more adaptable network infrastructure capable of supporting dynamic business needs without the complexity of traditional setups.

Overall, the trajectory for SD-WAN and NaaS suggests a shift towards more integrated, user-friendly network services that cater to the increasing demands for flexibility, security, and efficiency in enterprise networking.

How to choose between SD-WAN and NaaS

Choosing between SD-WAN and NaaS depends on your organization's specific needs, goals, and existing infrastructure.

If your organization is looking to optimize existing WAN performance with significant control and customization, SD-WAN may be the better choice. If you prefer a managed network service model that minimizes hardware dependencies and adapts easily to future needs, NaaS could be more suitable.

Here’s how to make an informed decision:

1. Assess your current network infrastructure.

SD-WAN is ideal for organizations that need to enhance existing WAN infrastructure. It uses multiple connection types to optimize performance and ensure reliability.

On the other hand, NaaS is a more comprehensive solution that abstracts physical network infrastructure management, providing network services through a subscription model.

2. Consider your organization’s need for scalability and flexibility.

SD-WAN allows for better bandwidth utilization and easy scalability by managing traffic across multiple connections. Which is beneficial for growing businesses who need efficient resource allocation.

NaaS, however, offers more flexibility without the need to manage hardware. This is especially useful for organizations aiming to reduce their hardware footprint and focus on core business operations.

3. Evaluate the level of control and customization required.

SD-WAN provides granular control over traffic routing and policy enforcement. This is a major boon for organizations with specific network performance and security requirements.

Again, NaaS offers a managed service model, so the provider handles network management. This works well for organizations who want to lean on expert management and possibly reduce internal IT workload.

4. Assess security requirements.

SD-WAN built-in security features like firewalls, intrusion prevention, and data encryption. This is ideal if you require a highly customizable and integrated security solution within your WAN. It’s worth noting, though, that managing these features usually requires internal security expertise.

NaaS provides pre-configured security features with varying levels of control depending on the provider. This simplifies management but may not offer the same level of customization as SD-WAN. NaaS can be a good fit if you prioritize ease of management and prefer to outsource security to a managed service provider.

5. Determine budget goals.

SD-WAN can reduce costs by optimizing the use of cheaper broadband connections alongside MPLS. But it still requires investment in hardware and management resources.

NaaS, with its subscription-based model, can offer predictable operating expenses and reduce capital expenditures by eliminating the need for significant hardware investments.

6. Think about long-term, future network needs.

Both SD-WAN and NaaS support future-proofing but in different ways.

SD-WAN optimizes WAN performance and scalability, allowing your network to adapt to changing needs and technologies. Which means the network can easily incorporate new technologies and handle increased data traffic as the organization grows.

NaaS, in contrast, offloads network management to the provider. This way, the network can easily adapt to future technological changes without requiring hardware upgrades.

TIP

Many vendors offer free trials, so test your options before making a decision. Trials can help determine which solution best fits your needs by providing hands-on experience with the technology.

Assessing your specific requirements and strategic goals will guide you in making the best decision between SD-WAN and NaaS.

SD-WAN vs. NaaS FAQs