Concerns about AI cybersecurity threats and a desire to focus on AI use cases will push the public cloud-managed LAN market into a phase of accelerated growth from 2026 to 2030 – to more than $10-billion – according to the Dell’Oro Group.
“As vendors like Arista, Cisco, Extreme, and HPE deepen public cloud-managed LAN feature sets, it is becoming more attractive for larger enterprises to outsource the LAN management host to the vendor,” says Siân Morgan, senior director at Dell’Oro Group. “These enterprises can benefit from frequent patches, including security fixes, and can then free up time to focus on the implementation of AI.
“LAN-as-a-Utility vendors Meter and Nile are expanding the campus NaaS (CNaaS) market by developing channel relationships and establishing a global presence,” continues Morgan, “CNaaS revenue from LAN-as-a-Utility vendors, made up of highly automated WLAN and campus switches, doubled in 2025 and the elevated growth is expected to continue.”
Additional highlights from the campus NaaS and public cloud-managed LAN Advanced Research Report include:
- Public cloud-managed LAN revenue is expected to grow by double-digits in 2026 and outpace the LAN market over the next five years.
- Following from its acquisition of Juniper, HPE’s is maintaining two cloud management platforms, which is reassuring for existing customers, but confusing for new ones.
- CNaaS revenue is accelerating due to the development of new functionality and channel expansion.