Public cloud-managed campus switch, WLAN market set for growth

Public Cloud-Managed Campus Switch and WLAN market revenues are expected to experience double-digit growth over the next three years, according to Dell’Oro.

“Vendors who sell Public Cloud-Managed LAN solutions are able to generate higher levels of recurring revenue,” said Siân Morgan, Enterprise Wireless LAN Research Director at Dell’Oro Group. Despite the challenging market, 2024 is the first year we’ve seen signs that enterprises are willing to increase their spending to get more advanced Public Cloud-Managed features.

“This willingness to incur recurring IT charges is positive news for startups such as Nile, Meter, Join Digital, Ramen and Shasta Cloud, who are ramping up deployment of their Campus NaaS (CNaaS) offers. CNaaS is a market segment that grew 65 percent in 2024,” added Morgan.

Additional highlights from the Campus NaaS and Public Cloud-Managed LAN Advanced Research Report:

• The Public Cloud-Managed LAN market is expected to exceed $12 billion in 2029.
• HPE’s Cloud-Managed offer has grown faster than the market, and the company’s pace of development seems unaffected by the pending lawsuit aiming to prevent HPE’s acquisition of Juniper.
• CNaaS revenue is accelerating thanks to increased traction with MSPs and Systems Integrators.
• The three types of CNaaS offer: Enabler, Turnkey, and LAN-as-a-Utility will be subject to different market drivers and suitable to different verticals, and are expected to grow at different rates.

Dell’Oro