NaaS can help organizations increase their flexibility and lower their risk compared to traditional equipment financing methods. Credit: iStock By: Cathy Won, Consultant with eTeam, HPE Aruba Contributor. Many people think of Network as a Service (NaaS) without the managed services component as simply a lease of the hardware and software. However, there are some key differences. Each implementation and experience working with various vendors will differ, but some highlights include the following: 1. Contracts The lease of hardware and software involves the same ordering process as making a purchase. Multiple purchase orders and separate support agreements are involved. With NaaS agreements, typically a single statement of work (SOW) provides a customized solution built for optimized performance and business outcomes that are inclusive of hardware, software, support, and services. 2. Overprovisioning Leasing hardware and software requires the same rigorous planning when an organization makes a large capital investment, often procured as a one-time event. This leads to the added cost and inherent risks of overprovisioning or under provisioning. NaaS delivers the flexibility to overcome those challenges. 3. Liability and risk The pace of change in technology and added devices can often expose networks to security vulnerabilities. NaaS often reduces these risks by ensuring the latest features and functions are implemented at all times. Ideal NaaS services include additional insights and analytics, provided through a dashboard, on the operational conditions of the network environment. Leasing is focused only on the financing of the network hardware and software, typically in a static environment without active services and analytic tools to drive optimal performance. 4. Balance sheet flexibility All accounting practices differ within each organization. NaaS is often supported as an operating expenses (OPEX) model, with some organizations preferring to categorize NaaS as capital expenditures (CAPEX). From the CIO perspective, NaaS is aligned to an operational IT budget point of view. From the CFO perspective, it is typically a question related to financial statements. The benefit of NaaS is that it is a usage-based agreement delivering services for the OPEX point of view. For example, a simple NaaS stock keeping unit (SKU) associated as a service-based delivered service could be more easily consumed from an OPEX perspective. 5. Asset management NaaS often includes intelligent deployments for achieving the best business outcomes. This includes asset management of all hardware, software, support, and service components. Leasing typically adds more decision layers, such as purchasing, renewing, or renegotiating multiple lease schedules. The holistic approach to a NaaS SOW alleviates organizations from the burden and resources of asset management. Consequently, while there can be vast differences between a lease and a NaaS implementation, careful consideration needs to occur with each individual organization to assess the best method to meet its business needs. NaaS offers more flexibility in the financial treatment of network deployments for organizations. Careful consideration should be done with advice and consultation from accounting and finance professionals. Click here to learn more about Aruba’s NaaS offerings or read the NaaS Buyer’s Guide. Related Resources: NaaS ExplainedDemand for Network as a Service Accelerates, Driven by Shorter Planning Cycles and Network Management ConcernsThe Future is Flexible. The Future is NaaS Related content brandpost Sponsored by HPE Aruba Networking Zero Trust: Understanding the US government’s requirements for enhanced cybersecurity By Jaye Tillson, Field CTO at HPE Aruba Networking Sep 26, 2023 4 mins Zero Trust brandpost Sponsored by HPE Aruba Networking How Zero Trust can help align the CIO and CISO By Jaye Tillson, Field CTO at HPE Aruba Networking Sep 20, 2023 4 mins Zero Trust brandpost Sponsored by HPE Aruba Networking Zero Trust Security for NIS2 compliance: What you need to know The NIS2 requirement to adopt a Zero Trust architecture reflects the limitations of models based on implicit trust— this security approach has exposed organizations to great risk. By Eve-Marie Lanza, Senior Security Solutions Marketing Manager, Aruba Sep 12, 2023 6 mins Zero Trust brandpost Sponsored by HPE Aruba Networking AIOps for successful IoT projects By Trent Fierro, Content and Operations at HPE Aruba Networking Aug 23, 2023 3 mins Artificial Intelligence Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe