Impact of COVID-19 on the Global Network as a Service Market
Network as a service is a virtual networking business model used to integrate cloud networking services with a cloud networking framework. This model delivers the service over a network virtually through a subscription model or "pay as you" service. The increasing adoption of cloud technology from medium and large enterprises, as well as rapid growth in the IoT systems, is contributing to the growth of the network as a service model. Furthermore, the rise in the development of new data center infrastructure is the critical factor driving the growth of the market. The novel COVID-19 has a neutral impact on the network as a service market. The epidemic has thrown up an unprecedented crisis for the nations and businesses across the world. The spread of coronavirus across the globe has resulted in lockdowns in the countries, which has compelled people to stay at home and forced companies to allow their employees to work at home to contain the spread of the epidemic. Cloud technology helps employees access the system and application from home. People staying at home has increased the usage of the internet. This has surged the demand for high-speed network connection. The amount of data generated through the Internet requires cloud services and data centers to manage the large volume of data, which drives the growth of the network as a service market. According to MRFR analysis, the video streaming consumption during the pandemic is more than 60%; OTT service providers can improve video network stability and increase the channel uptime. Companies such as Google Inc. have partnered with Synamedia in May 2020 to expand its video network portfolio with the OTT as a service portfolio. This partnership helps Synamedia to meet the needs of customers by maximizing the performance and increasing the scalability for OTT services as well as reduce the complexity and operational cost.
Source: MRFR Analysis
However, on the flip side, the halt in the construction of new data centers and delays caused in the existing construction projects of data centers due to the COVID-19 pandemic is hindering the growth of the global network as a service market. Furthermore, the lack of proper infrastructure for the implementation of the network as a service, especially in the underdeveloped and emerging economies, is also hampering the growth of the market. Post-pandemic, the development in the telecom industry related to the network expansion and the rise in the development of the data center infrastructure are expected to drive the growth of the network as a service market.
Source: MRFR Analysis