What is the difference between NaaS and managed service providers (MSPs)?

NaaS and managed services providers (MSPs) both offer solutions for outsourcing network management and operations, but they differ in range of services, delivery model, flexibility, and agility.

MSPs offer a broad range of IT services, including network management, cybersecurity, data backup, and general IT support, which can include managing the customer’s existing network. They provide customized solutions based on specific customer needs, working closely with the customer’s IT team.

NaaS providers focus specifically on delivering network services through a subscription-based model, which includes design, deployment, and operations, all fully managed by the provider. NaaS solutions are more flexible and scalable, leveraging cloud technology to dynamically adjust resources based on demand, whereas MSPs may not offer the same level of real-time scalability or observability into the network, and tend to have a broader, more generalized IT focus.

Let’s look at some specific differences between NaaS and MSPs.

Range of IT and Network Services

Compare the differences in range of services and features between NaaS and MSPs.

Network-as-a-Service

• Network Specialization: NaaS providers focus solely on network technology and operations, with specialized domain experts to manage the entire network lifecycle.
• Fully Managed Network: NaaS delivers a purpose-built network technology stack, complete with state-of-the-art hardware, software, network operations center (NOC), security, proactive monitoring tools, AI and automation technology, and network data analytics. Along with specialized network staff, NaaS offers full management of the network, including design, deployment, maintenance, monitoring, operations, upgrades, and support.
• Customized Solutions and Integrations: Ensuring interoperability between NaaS and customer deployments, NaaS providers support typical enterprise needs like customizing network architecture and configurations to support unique usage and traffic patterns, or technology integrations like integrations with existing cybersecurity solutions or enterprise authentication

Managed Service Provider

• Broad IT Expertise: MSPs offer a broad range of IT services that includes network management as one component. While this can be beneficial for businesses looking for comprehensive IT support beyond just networking, NaaS providers bring specialized networking knowledge providing more diverse expertise across different networking, security, AI-driven network operations technologies.
• Customized Solutions: MSPs typically provide tailored solutions based on specific client needs, which may include a range of IT services beyond just network management, such as IT support, data backup, cybersecurity, and cloud services.

Delivery Model

Compare the differences in network delivery models between NaaS and MSPs.

Network-as-a-Service

• Comprehensive Service Package: NaaS offers an all-inclusive service that combines hardware, software, and management into a single subscription-based model. It includes network design, deployment, monitoring, maintenance, security, operations, optimizations and upgrades, and support.
• Flexible Consumption and Predictable Cost: Pricing for NaaS is all-inclusive and provides better predictability and transparency to network costs. Because this consumption-based model is entirely an operating expense (OpEx), it is typically more budget friendly and better supports growth and changing business conditions with better on-demand resource and capacity scalability.
• Cloud-Managed Network: NaaS leverages cloud technology to provide network services over the internet, centralizing management and operations controls. This limits the amount of on-premises hardware to access points and switches providing greater flexibility and scalability.

Managed Service Provider

• Ala Carte Services: While network design, deployment, monitoring, maintenance, security, and operations, come standard in NaaS, depending on the MSP, some services may require additional fees or are organized into various service and support tiers, ranging from basic to comprehensive support levels.
• Fixed and Flexible Contracts: MSPs typically offer fixed or flexible rates depending on the customer, usually with a mixture of OpEx and capital expenditures (CapEx) for separate hardware purchasing when offered. MSP pricing generally does not offer the same level of dynamic, on-demand scalability as NaaS, focusing on maintaining existing resources or charging additional upgrade fees rather than rapidly adjusting capacity or upgrading to new technology.

Hardware Ownership and Upgrades

Compare the differences in asset ownership between NaaS and MSPs and how that affects upgrades and the network lifecycle.

Network-as-a-Service

• Network Hardware and Lifecycle Ownership: NaaS providers own the hardware and has full control over the entire network lifecycle. With ownership of the entire infrastructure, NaaS providers has full control to prioritize network operations, replace failing hardware, integrate new technologies and upgrades to ensure performance, reliability, security, and agility.
• Included Hardware Upgrades: Most importantly, NaaS includes equipment upgrades, so not only are customers able to access new technology, ensuring the network supports business growth and modernization without major increases in capital investment.

Managed Service Provider

• Customer-Owned Infrastructure: In many cases, MSPs manage the customer’s existing infrastructure, although they may also provide additional hardware and software if needed, which typically involves reselling or leasing equipment to customers. The customer often retains ownership and responsibility for the initial procurement and installation of network equipment.
• Hardware Upgrades Not Included: While NaaS providers include replacing failing hardware and upgrading hardware when new technologies are released, most MSPs are limited to either OEM support or rely on the customer to procure the necessary equipment. In cases where an MSP may resell or lease new equipment, these are often additional fees and not part of the original contract.

Performance Guarantees

Compare the differences in SLAs and performance guarantees between NaaS and MSPs.

Network-as-a-Service

• Comprehensive SLAs: NaaS typically includes SLAs that guarantee performance, uptime, coverage, capacity, and response times, providing peace of mind that the network will meet business requirements.
• Network Resilience: NaaS is built to be resilient ensuring network continuity, whether it’s redundant fiber internet connectivity to guard against ISP outages, protecting against power fluctuations, or managing hardware failures through automatic failovers.

Managed Service Provider

• Limited Guarantees: Because MSPs don’t own most of the network infrastructure and services a customer needs in a modern network, they aren’t able to offer the same levels of SLAs and network performance guarantees outside of their own response times.
• Network Resilience: While MSPs can support network resilience, they are typically additional purchases or separate tiers of support, as opposed to NaaS which includes this as a core component of the network design.

Native vs Optional Features

Compare the differences in native and optional network features between NaaS and MSPs.

Network-as-a-Service

• All-Inclusive Network Functionality: Few things in NaaS are optional network services. Because NaaS is purpose-built to support modern networks, it includes the full network technology stack, hardware software, AI and monitoring tools, Zero Trust security, and range of services like network design, deployment, monitoring, maintenance, AI-driven operations, and support.

Managed Network Service

• Customizable Offerings: MSPs typically offer an ala carte menu of IT services, so features that are native to NaaS are frequently add-ons, leaving it to customers to choose between service and technology options. For example, Zero Trust architecture is typically an additional service for MSPs, but is built into NaaS by design, inclusive of micro-segmentation, strict access controls and authentication, SD-WAN, and monitoring and protecting network traffic.

Proactive vs Reactive Management

Compare the differences in proactive and reactive management approaches between NaaS and MSPs.

Network-as-a-Service

• Proactive Management: NaaS includes a proactive approach to network operations. The entire network is continually monitored and with built in automations and AIOps, many issues are resolved automatically. Software and security patches are automatically applied to ensure a continuous secure, always-on network environment.
• Network Operations Center (NOC): Some NaaS providers offer a fully managed 24/7 Network Operations Center (NOC), ensuring peak performance and high availability through continuous monitoring and maintenance to automatically address any issues.

Managed Service Provider

• Reactive Management: While many MSPs have varying maintenance and support levels, much of this depends on contract requirements with their customers. Because this involves a contractual nature with customers, whether its lack of financial resources or expectations of being able to operate the network in house, many MSPs may not monitor the network or apply patches and updates automatically, or at all. Not only can this introduce network performance and reliability issues, but also significant compliance and security risks.

Interested in learning how NaaS can simplify your network operations? Talk to a Join NaaS expert today and get a tour of our NaaS solutions.