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Why Cisco Expects Mobile NaaS to Drive Revenues

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How does NaaS benefit mobile service providers?

According to Cisco (CSCO), the adoption of mobile Network-as-a-Service (or NaaS) should help businesses to “have more flexibility and control of their mobile services.” NaaS is expected to provide a number of benefits to mobile service providers.

Cisco states that new service elements can be integrated, which can reduce the cost of support and encourage experimentation. Mobile service providers would be able to reduce the cost of service operations with more open and streamlined support models.

Cisco’s research report states that mobile NaaS can also reduce the impacts of a number of technological issues such as a software glitch, radio misbehavior, or a faulty sensor. This can be achieved as mobile NaaS is able to partition traffic by customer and application.

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Internet of Things: A key driver for mobile NaaS

The IoT (Internet of Things) will be one of the key drivers for mobile NaaS. According to Juniper (JNPR), the number of connected devices is expected to increase from 13.4 billion in 2015 to 38 billion in 2020, representing a growth rate of 285%.

As shown in the above chart, the global IoT market is expected to reach $7 trillion by 2020, growing at a CAGR (compound annual growth rate) of 21%. The IoT segment has attracted a number of tech heavyweights, including semiconductor (SMH) giants Intel (INTC) and Qualcomm (QCOM).

As the number of connected devices increases, mobile service providers will want to take advantage of this market opportunity.

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