20 August 2025  ·  articles

NaaS vs Traditional Networks: Complete UK Guide

Network-as-a-Service vs traditional networks explained. Compare costs, scalability & security. Complete guide for technical decision-makers.

Knowledge Centre
20 August 2025

Published: 20 August 2025 | Reading time: 13 minutes

Why Network Infrastructure is at a Crossroads

The way organisations approach networking is undergoing a fundamental transformation. Traditional hardware-based networks, once the backbone of enterprise IT, are struggling to meet modern demands for cloud connectivity, remote work support, and rapid scalability.

This shift has sparked intense interest in Network-as-a-Service (NaaS) as an alternative to traditional networking approaches. But what exactly is the difference, and when does each approach make sense?

This guide examines the fundamental differences between NaaS technology and traditional networking, exploring practical implications for UK organisations, particularly those in the public sector and healthcare where compliance, security, and budget considerations add complexity to networking decisions.

Traditional Networks: Strengths and Limitations

How Traditional Networking Works

Traditional network infrastructure follows a capital expenditure model where organisations purchase, own, and maintain physical networking equipment - routers, switches, firewalls, and other appliances installed in data centres and connected to create network infrastructure.

Where Traditional Networks Excel:

  • Predictable costs once initial investment is made

  • Complete control over every aspect of network infrastructure

  • No internet dependency for core operations

  • Mature ecosystem of tools, training, and expertise

Where Traditional Networks Struggle:

  • Scalability constraints: Adding capacity requires purchasing and installing new hardware (months)

  • High upfront costs: Substantial capital expenditure requirements

  • Skills shortage: Specialised expertise increasingly difficult to find and retain

  • Security complexity: Multiple devices requiring individual updates and patches

  • Cloud integration challenges: Poor connectivity to modern cloud services

  • Maintenance overhead: Significant ongoing effort for hardware and software management


What is NaaS Technology and How Does it Work?

Network-as-a-Service (NaaS) represents a fundamental shift from hardware ownership to service consumption. Rather than purchasing and maintaining physical network equipment, organisations access networking capabilities through a cloud-based service model.

Core NaaS Principles

Software-Defined Foundation: NaaS builds on software-defined networking (SDN) principles, where network functions are virtualised and controlled through software rather than embedded in physical hardware.

Cloud-Native Architecture: NaaS platforms seamlessly connect on-premises infrastructure, public clouds, and edge locations through a unified platform that treats all locations as part of a single, software-defined network.

Service-Based Consumption: Instead of buying network equipment, organisations subscribe to networking services - connectivity, security functions, monitoring, and management delivered as integrated services.

Centralised Management: NaaS platforms provide unified visibility and control across all network locations through web-based portals or APIs.

Key Technological Components

  • Network Function Virtualisation (NFV): Software-based virtual network functions replace hardware appliances

  • SD-WAN Integration: Intelligent traffic routing and application-aware quality of service

  • Cloud Connectivity: Native integration with major cloud platforms for optimised connections

  • Security Integration: Built-in security functions rather than separate bolt-on solutions

  • Analytics and Observability: Real-time visibility into network performance and security

At Cloud Gateway, our tech-enabled MSP approach means customers get the benefits of NaaS while choosing how much direct control they want versus how much they delegate to our expert team.


NaaS vs Traditional Networks: Complete Analysis

Cost Models and Financial Impact

Traditional Network Costs:

  • Large upfront capital expenditure requirements

  • Ongoing maintenance and support contracts

  • Dedicated staffing or expensive consultants

  • Regular hardware refresh cycles

  • Additional costs for upgrades and expansions

NaaS Cost Models:

  • Predictable monthly or annual subscription costs

  • OPEX-centric pricing model

  • Flexible commercial terms and short contract terms

  • No vendor lock-in

  • Included platform access, support, and regular updates

For UK public sector organisations operating under tight budget constraints, the predictable OpEx model of NaaS aligns well with annual budget cycles and eliminates the need for large capital approvals.

Scalability and Deployment Speed

Traditional Networks:

  • Adding sites: Weeks or months for procurement, installation, configuration

  • Bandwidth changes: Hardware upgrades or additional circuits

  • Total deployment: 3-6 months typical timeline

NaaS Platforms:

  • Adding sites: Deploy edge device and update configurations (days)

  • Bandwidth changes: Portal updates taking effect immediately

  • Total deployment: 4-8 weeks typical timeline

Security and Compliance

Traditional Networks:

  • Individual device configuration and maintenance

  • Manual security updates across multiple devices

  • Complex compliance documentation and audits

NaaS Platforms:

  • Centralised security policy enforcement

  • Automatic platform-wide security updates

  • Built-in compliance reporting and audit trails

For UK organisations, NaaS platforms typically provide superior compliance capabilities, particularly valuable for NHS Digital standards, PSN requirements, and financial services regulations.


NaaS vs Other Modernisation Approaches

NaaS vs DIY SD-WAN Deployment

Many organisations consider implementing SD-WAN themselves rather than consuming it through a NaaS platform.

DIY SD-WAN Challenges:

  • Complexity: Requires specialised skills in software-defined networking

  • Security gaps: SD-WAN provides networking but requires separate security solutions

  • Management overhead: Continuous monitoring, policy adjustment, troubleshooting

  • Limited support: Vendors provide technical support but not operational guidance

NaaS Advantage:

  • Expert deployment with proven methodologies

  • Integrated security from day one

  • 24/7 monitoring and proactive management

  • Vendor-neutral approach reducing lock-in

NaaS vs Direct from Telcos

Traditional telecommunications providers offer networking services that may appear similar to NaaS but differ significantly.

Telco Limitations:

  • Innovation constraints: Slow adoption of new technologies

  • Rigid contracts: Long-term commitments with limited flexibility

  • Limited cloud integration: Basic connectivity without deep platform integration

  • Service gaps: Connectivity focus without comprehensive platform capabilities

NaaS Platform Benefits:

  • Faster innovation incorporating latest technologies

  • Flexible commercial terms supporting business agility

  • Deep cloud platform integration

  • Comprehensive platforms combining connectivity, security, and management

NaaS vs MSP: Understanding the Difference

Traditional MSPs manage customer-owned equipment, while tech-enabled MSPs combine platform capabilities with managed services.

Traditional MSP Constraints:

  • Hardware dependency limiting new capabilities

  • Reactive service model responding after problems occur

  • Limited integration across networking, security, and cloud functions

  • Scalability constrained by physical infrastructure

Tech-Enabled MSP Evolution: Cloud Gateway represents this new category, combining:

  • Platform-first architecture enabling rapid scaling

  • Integrated networking, security, and cloud connectivity

  • Proactive monitoring and optimisation

  • Choice between self-service and managed options

Why NaaS Isn't a Product: Understanding Service Delivery Models

One critical concept for organisations evaluating NaaS is understanding it represents a service delivery model, not just a technology product.

The Four Components of NaaS Delivery

Technology Platform: The underlying infrastructure, software capabilities, and technical features enabling network functionality.

Service Wrapper: Ongoing management, monitoring, and support services transforming technology into managed service.

Expertise Layer: Strategic guidance, architectural design, and consultative support ensuring solutions align with business objectives.

Integration Capability: Seamless connection with existing systems, legacy infrastructure, and future technology choices.

Service Delivery Spectrum

Different providers offer different approaches:

  • Pure Platform Providers: Technology with minimal service wrap

  • Traditional MSPs: Comprehensive services but limited platform capabilities

  • Tech-Enabled MSPs: Advanced platform capabilities with full managed services

  • Telco Providers: Connectivity focus with limited platform innovation

Cloud Gateway's position as the UK's only tech-enabled MSP means customers get complete choice: full platform control when desired, comprehensive managed services when needed, or any combination suiting their operating model.


NaaS in Government IT Infrastructure

Public sector organisations face unique networking challenges requiring specialised understanding and capabilities.

Unique Public Sector Requirements

Regulatory Compliance:

  • NHS Digital standards for healthcare connectivity

  • PSN requirements for government departments

  • HSCN compliance for NHS organisations

  • Data Protection Act and GDPR considerations

Data Sovereignty:

  • UK-based infrastructure ensuring data never leaves British soil

  • Government-grade security exceeding commercial requirements

  • Comprehensive audit trails meeting transparency obligations

Budget Constraints:

  • OPEX-focused budgets preferring subscription models

  • Shorter contract terms aligning with political cycles

  • Value-for-money requirements with transparent pricing

How NaaS Supports Public Sector Digital Transformation

Modernising Legacy Infrastructure:

  • Secure connectivity between legacy systems and cloud services

  • Phased migration minimising disruption to critical services

  • Security overlay protecting systems lacking modern safeguards

Enabling Citizen Services:

  • Scalable infrastructure supporting new digital services

  • Multi-channel support for web, mobile, and in-person interactions

  • Geographic reach ensuring consistent service delivery

Supporting Inter-Agency Collaboration:

  • Cross-network connectivity between PSN and HSCN environments

  • Standardised security policies simplifying collaboration

  • Shared services supporting multiple organisations

Cloud Gateway's role as the only UK provider offering secure access to both HSCN and PSN networks positions us uniquely to support these requirements with proven public sector expertise.


Determining if NaaS is Right for Your Organisation

Decision Framework

Organisational Readiness:

  • Change management capability for operational transitions

  • Risk tolerance for external service dependencies

  • Strategic alignment with cloud adoption and digital transformation

  • Budget flexibility for OpEx vs CapEx models

Technical Requirements:

  • Network complexity and customisation needs

  • Legacy integration requirements

  • Performance and latency sensitivity

  • Compliance and regulatory obligations

Key Evaluation Questions

Strategic Questions:

  • Does NaaS align with our broader IT and business strategies?

  • Are we prepared for operational changes NaaS requires?

  • How does NaaS support our digital transformation objectives?

Technical Questions:

  • Can the platform integrate with our existing infrastructure?

  • Does the provider understand our industry requirements?

  • How does the platform handle our critical applications?

Operational Questions:

  • What level of network control do we need to maintain?

  • Do we have expertise for self-service platforms?

  • How will NaaS affect current staff roles?

When Traditional Networks Might Still Be Appropriate

  • Highly regulated environments mandating specific infrastructure control

  • Extreme security requirements necessitating direct control

  • Recent significant investments in traditional infrastructure

  • Very simple, stable requirements in small organisations

  • Highly specialised technical requirements needing extensive customisation


Frequently Asked Questions

Is NaaS more expensive than traditional networking? Short-term monthly costs may be higher, but total cost of ownership over 3-5 years often favours NaaS when including maintenance, staffing, and refresh costs.

Can NaaS work with existing infrastructure? Modern NaaS platforms integrate with existing systems rather than requiring replacement, supporting gradual modernisation approaches.

What are the risks of moving to NaaS? Key risks include vendor dependency, internet connectivity requirements, and change management challenges. Proper planning and provider selection mitigate these risks.

How do we evaluate NaaS providers? Assess platform capabilities, industry expertise, service delivery models, commercial terms, and track records with similar organisations.

Is NaaS suitable for regulated industries? Yes, often providing better compliance capabilities than traditional approaches through centralised management and professional expertise.


Conclusion

NaaS represents a fundamental evolution in network delivery, offering compelling advantages for organisations facing modern networking challenges - scalability requirements, security threats, cloud integration needs, and skills shortages.

Success with NaaS requires understanding it as a service delivery model rather than just technology, careful provider selection based on industry expertise and service capabilities, and commitment to operational changes that effective implementation requires.

For UK organisations, particularly those in regulated sectors, NaaS can provide the network foundation necessary for digital transformation while meeting stringent compliance and security requirements.

Ready to explore NaaS for your organisation? Contact our networking experts to discuss how Cloud Gateway's tech-enabled MSP approach can support your network modernisation objectives, or request a demo to see our platform capabilities in action.

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