CIO OPINION areas , providing a pathway for CFOs to participate in the evaluation phase .
Depreciation
Spikes in capital budget spending for network infrastructure put pressure on businesses , causing organisations to slow down acquisition of new network infrastructure . This makes the most obvious benefit the fact that you can shift from a CapEx procurement model to an OpEx one . NaaS provides financial flexibility and predictable monthly subscription charges rather than large upfront networking costs .
If you have leased networking infrastructure , you are already receiving the benefits of switching from CapEx to OpEx . However , a lease is typically aligned to the depreciation lifecycle of the infrastructure , and we see this quite frequently in the range of 7 – 10 years . A lot can change in this amount of time . which technology evolves at the edge . NaaS avoids lengthy lease terms and long depreciation lifecycles . Many NaaS agreements offer expansion and renewal options included to ensure you stay on top of the latest networking technology .
Overprovisioning
Optimising technology utilisation is another challenge confronting CFOs on the path to digital transformation . A challenge within the CapEx model is that it usually requires upfront prediction and planning of long-term capacity for the purpose of making infrastructure investments . NaaS , on the other hand , can grow with your business to meet future capacity demands .
The network should be architected to address current network requirements today but designed in such a way that it enables scale out in future , which builds
To put this in context , the last 8 years has seen us jump from Wi-Fi 5 through Wi-Fi 6 and now into Wi-Fi 6E . Technology iterates quickly , as do business requirements .
NaaS allows for more frequent technology refreshes , every 3 – 5 years which better aligns to the speed at
You no longer purchase and maintain the network ; you consume the network as a service .
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