Network as a Service (NaaS) is reshaping enterprise connectivity by enabling more adaptive and flexible network infrastructures. The model allows enterprises to consume networking services on demand, replacing traditionally rigid and overprovisioned connectivity models with scalable, software-driven services.
NaaS represents a fundamental shift in how networks are designed, delivered, operated and consumed, marked by the transition from the following:
- Pre-defined service bundles to programmable, on-demand services
- Static provisioning to real-time, elastic scaling
- Hardware-based architectures to software-defined networking (SDN)
- Provider-managed networks to co-managed and self-service models
- Connectivity-centric delivery to application- and experience-centric services
- Fixed, long-term contracts to consumption-based, pay-as-you-go options
By 2034, the NaaS market is expected to reach USD 219.3 billion from USD 43.39 billion in 2026, growing at a CAGR of 22.50 %1. Telecom operators remain the primary providers of NaaS with their:
- ownership of last-mile access,
- extensive infrastructure, and
- a solid enterprise clientele.
Telecom operators are followed by cloud providers such as AWS and Azure, who utilize global interconnection fabrics to integrate networking directly into cloud workloads. Simultaneously, SD-WAN and SASE players deliver NaaS through software-defined overlays and cloud-based security, while neutral hosts, edge providers, and MSPs further diversify the ecosystem via shared infrastructure models.
Architecture, agility and why NaaS requires real-time network visibility
Unlike legacy enterprise connectivity services - where upgrades can take weeks or months and integration spans extended timelines - NaaS enables services to be instantiated in near real time. It does so by leveraging the following:
- SDN for programmability
- APIs for seamless communication across network elements
- orchestration and automation platforms
- virtualized and cloud-native network functions
NaaS enables bandwidth and policies to be adjusted dynamically, often within minutes. This, in turn, demands an architecture that can continuously adapt capacity and services with minimal latency - delivering on the core promise of NaaS. It also requires both enterprises and providers to understand network activity end to end, map event chains, and assess their impact on performance, security, service quality and user experience.
To support this level of dynamic control, NaaS environments depend on real-time, high-fidelity visibility into network activity. Deep Packet Inspection (DPI) provides this foundation by enabling real-time network observability across applications, protocols and traffic behavior. Next-gen DPI software from ipoque uses statistical, behavioral, and heuristic analysis, ML techniques along with metadata extraction, to accurately classify traffic down to applications, protocols, and service types. Leveraging these insights, NaaS providers and enterprises can dynamically adjust policies, bandwidth, and service configurations in line with real-time network conditions.
DPI as the intelligence layer in NaaS
A NaaS architecture inherently involves:
- Managing multiple virtualized network instances per customer - such as dedicated SD-WAN overlays, secure remote access, IoT connectivity, or low-latency application slices.
- Supporting multiple customers on shared infrastructure, each with unique traffic patterns, usage behaviors, and performance requirements.
Given this, NaaS providers require cloud-native, highly scalable visibility tools, including the VPP-based R&S®vPACE, which is designed for compute-intensive environments. This enables both enterprise and service provider dashboards to surface granular metrics and diagnostic insights at every level - packet, flow, session, slice, and virtual network - regardless of traffic type and volume.
How DPI supports key NaaS operational KPIs:
- Managing network performance and service assurance: DPI supports proactive SLA assurance by continuously monitoring latency, jitter, packet loss, throughput, retransmissions, and application response times across customer environments For example, operators can determine whether a slowdown in collaboration applications such as Zoom is due to congestion, routing inefficiencies, or application-layer issues, accelerating root cause analysis and resolution.
- Enhancing security posture: Both DPI engines R&S®PACE 2 and R&S®vPACE provide advanced traffic intelligence by identifying anomalous, suspicious, and potentially malicious traffic flows. This includes detecting command-and-control activity, data exfiltration attempts, and DDoS attacks, identifying shadow IT, and enforcing zero-trust policies. NaaS operators can then isolate affected segments, enforce policies such as blocking or rate-limiting, and trigger alerts in real-time.
- Improving monetization opportunities: DPI enables NaaS operators to identify usage patterns and unmet demand. For instance, if an enterprise consistently exceeds allocated bandwidth during peak periods or experiences quality degradation, operators can propose tailored upgrades or offer optimization services such as caching, traffic prioritization, or enhanced security tiers as paid add-ons. DPI also enables more granular service models in multi-tenant NaaS environments. Operators can introduce differentiated billing and invoicing structures based on application classes, premium low-latency traffic, security services, or per-application SLA assurance. Combined with customer-facing visibility portals, this allows providers to position NaaS as a service-oriented offering centered around application experience and operational outcomes, rather than simply bandwidth delivery.
- Optimizing cost and resource allocation: With full visibility into traffic consumption patterns, operators can identify which enterprises or workloads place the highest demand on shared infrastructure. This enables more accurate cost attribution, efficient capacity planning, improved operational efficiency, better pricing models, and stronger ROI.
- Enabling application-aware QoS enforcement: DPI enables significantly more precise QoS policies than traditional Layer 3 or Layer 4 approaches. Rather than prioritizing traffic solely based on ports or protocols, DPI provides granular application visibility that allows operators to identify and manage specific services—even when encrypted HTTPS traffic is used. This enables operators to prioritize latency-sensitive applications such as Microsoft Teams or Zoom, secure critical SaaS applications such as SAP or Salesforce, or limit bandwidth-intensive streaming traffic such as YouTube based on real-time network conditions and business priorities.
- Supporting compliance and governance requirements: DPI supports compliance, governance, and data protection initiatives by helping operators detect sensitive traffic patterns, enforce segmentation policies, and strengthen auditing capabilities. These capabilities are particularly relevant in highly regulated environments such as financial services, healthcare, critical infrastructure, and government networks, where organizations must demonstrate appropriate security controls and policy enforcement while maintaining operational visibility.
Maintaining visibility in encrypted NaaS environments
Encryption protocols such as TLS 1.3, QUIC, and ECH are being applied progressively across more enterprise applications to safeguard information and users. This challenges visibility, resulting in serious performance and security implications for the enterprise itself as well as NaaS providers. The encrypted traffic intelligence (ETI) by ipoque helps address this loss of visibility. Embedded within R&S®PACE 2 and R&S®vPACE, ETI leverages
- machine learning
- deep learning
- high-dimensional data analysis
to infer traffic characteristics without decrypting payloads. This enables reliable classification of encrypted, anonymized, and obfuscated traffic, ensuring complete transparency into protocols and applications, without compromising privacy or compliance.
Helping enterprises improve their services and revenues
Beyond operations, DPI-derived insights can be packaged into advanced analytics services by NaaS providers to help enterprise clients
- optimize application performance
- enhance user experience
- uncover new revenue opportunities
For example, enterprises can use these analytics to optimize their computing stacks or enhance application features. They can also identify user segments consistently engaging with specific services, such as digital wallets, and leverage these channels to deliver targeted offers.
A win for autonomous networks
Looking ahead, DPI data will play a foundational role in emerging NaaS architectures built on digital twins and knowledge graphs. Digital twins can replicate network environments in near real time, enabling simulation, optimization, and predictive maintenance. Knowledge graphs, meanwhile, map relationships between network entities, events, and services, enabling context-aware intelligence. High-quality DPI data feeds these systems with accurate, real-time inputs, forming the basis for autonomous network operations.
On the automation front, Agentic AI systems used in the orchestration and automation of NaaS can greatly benefit from real-time DPI data in driving adaptive, intent-based policies. R&S®PACE 2 and R&S®vPACE, with one of the highest detection accuracy rates in the industry, enable AI agents to learn network conditions and adjust their decisions continuously in closed-loop automation models. For example, it allows agents to dynamically adjust routing, deploy network functions, or create new network slices. For NaaS providers, intelligent and autonomous networks operations improve scalability and operational efficiency across growing customer environments.
Conclusion
NaaS is rapidly emerging as a preferred model for enterprise networking, offering unmatched flexibility, scalability, and control. For NaaS providers, embedding deep visibility through DPI enhances QoS, strengthens SLA assurance, and enables more reliable service delivery, supporting scalable service assurance and consistent user experiences across complex network environments.
Sources:
[1] Fortune Business Insights: https://www.fortunebusinessinsights.com/network-as-a-service-market-106700