In the quest for hug potential profits, I'm always looking at where the puck is going.
I’ve brought up the important industry movement to software-as-a-service (SaaS) like a broken record.
Simply put, there’s no escaping this movement and it will be part of many, if not all, of the technology trends of the future.
Recently, I shared with you that Gartner predicts that the SaaS industry will be worth $143.7 billion by 2022. And analysts at Bloomberg predict that cloud platform and SaaS will grow at a 9% compound annual growth rate between 2019 and 2023.
Consumers are impacted since Microsoft, Adobe and many other have jumped on the SaaS bandwagon.
Most enterprise software has switched to this model as well.
Think about all the software that your employer uses for email, customer service, project management, marketing… Each one is charging some sort of subscription fee.
The network landscape is a little more complicated than your word processor program. But the same theory can be applied.
Just like SaaS eliminates the needs for a pile of discs and trips to Best Buy, network-as-a-service is eliminating the need for specialty hardware. Plus, it allows for easy adaptability and customization.
Traditional networking uses a combination of hardware and software to direct traffic across routers and switches. The transition to a software-defined network (SDN) is exactly what it sounds like. The network is defined by the software.
This allows easy deployment of applications to specific parts or even across the whole network. It also allows for network functionality virtualization (NFV). NFV is the use of software running on a central controller as a substitute for specialized hardware.
One tangible example is the firewall. In any organization’s data center, there will be at least one hardware firewall. Combines with software firewalls on individual computers, the entire network is theoretically protected.
In an SDN, the firewalls are all software-based, but can be adjusted and customized for each section of the network.
This is done by "network slicing".
It even allows for network slicing so the customer can finetune each part of the network. Different slices might need different functionality, speeds, or security.
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For example, the parts of the network containing sensitive data can be locked down while consumers can still access other parts.
It allows customers to fine-tune, control and dynamically adjust their networks.
This is where NaaS gets really cool…AI and built-in automation.
This can include automating the design, creation, modification and monitoring of network slices. And when required it can also automate the provisioning of underlying resources.
Combine this with advanced analytics, AI and machine learning and the result is a self-driving, self-healing and self-optimizing network.
These adaptive networks will be able to make their own adjustments faster than any human could. It can even identify problems before they even happen and provide solutions.
There are two trends that factor into how important NaaS will be for businesses. First is the Coronavirus. Businesses already have needed to adapt.
For some, that meant a new enterprise software and for others, it meant a complete pivot of the direction the business was headed.
The other is the inevitable switch from 4G to 5G. This is going to mean massive hardware upgrades. So why not switch to a combination of hardware and software that will save time and money in the future.
This is one of the trends that I’m keeping my eye on because the "pick and shovel" plays here will be great money makers.
I’m putting the finishing touches on my latest issue of Wealthy Tech Investor.
This month I share more specific trends I’m following in the enterprise software space… plus the specific company that is sure to be a winner.
If you're not a subscriber, this is a hot pick you'll won't want to miss out on.
To your prosperity and health,
Joshua M. Belanger
Executive Publisher & Founder