LAN-as-a-Utility Startups Expected to Drive CNaaS Revenue CAGR Over 50 Percent
REDWOOD CITY, Calif. – June 30, 2026 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, concerns about AI cybersecurity threats and a desire to focus on AI use cases will push the Public Cloud-managed LAN market into a phase of accelerated growth from 2026 to 2030.
“As vendors like Arista, Cisco, Extreme, and HPE deepen Public Cloud-managed LAN feature sets, it is becoming more attractive for larger enterprises to outsource the LAN management host to the vendor,” said Siân Morgan, Sr. Director at Dell’Oro Group. “These enterprises can benefit from frequent patches, including security fixes, and can then free up time to focus on the implementation of AI.
“LAN-as-a-Utility vendors Meter and Nile are expanding the Campus NaaS (CNaaS) market by developing channel relationships and establishing a global presence,” continued Morgan, “CNaaS revenue from LAN-as-a-Utility vendors, made up of highly automated WLAN and campus switches, doubled in 2025, and the elevated growth is expected to continue.”
Additional highlights from the Campus NaaS and Public Cloud-managed LAN Advanced Research Report:
- Public Cloud-managed LAN revenue is expected to grow by double-digits in 2026 and outpace the LAN market over the next five years.
- Following from its acquisition of Juniper, HPE’s is maintaining two cloud management platforms, which is reassuring for existing customers, but confusing for new ones.
- CNaaS revenue is accelerating due to the development of new functionality and channel expansion.
Dell’Oro Group’s Campus NaaS and Public Cloud-managed LAN report defines the key characteristics of CNaaS and investigates the various types of services available on the market. It quantifies both the CNaaS and the Public Cloud-Managed LAN markets in terms of revenues and shipments, and provides forecasts for the next five years. The report compares CNaaS and Public Cloud-Managed LAN revenues to overall campus LAN equipment sales, including Wireless LAN and Campus Ethernet switching manufacturer revenues. Also included is a summary of some of the available vendor offers and a regional breakdown of the market opportunity. For more information about the report, please contact us at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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