Brandon Butler, IDC Senior Research Manager, Enterprise Networks
In the AI era, small and medium-sized businesses (SMBs) are racing to gain a competitive edge and ensure they aren’t left behind. By adopting Network as a Service (NaaS) models and leveraging 5G connectivity, SMBs can accelerate digital transformation, drive efficiency, and unlock new opportunities for growth. Reliable and secure connectivity is now a cornerstone of modern business agility.
Advanced 5G NaaS connectivity empowers businesses to securely access cloud-based, AI-powered applications for HR, finance, planning, logistics, and productivity. 5G connectivity also drives high-quality user experiences, serving as the linchpin for connected workplaces, which delight employees and customers and enable new business opportunities.
Conversely, unreliable connectivity can be detrimental. Network downtime can lead to lost revenue, decreased productivity, and dissatisfied employees and customers. In all, through technology such as fixed wireless access, 5G has cemented its place as a reliable and secure primary connectivity method for organizations across the country.
5G connectivity drives high-quality user experiences, serving as the linchpin for connected workplaces, which delight employees and customers and enable new business opportunities.
However, SMBs face distinct challenges in advancing their connectivity strategies and adopting a NaaS model. According to IDC’s survey data, medium-sized businesses with 500–999 employees cited key obstacles, including a lack of IT staff/labor shortages, network complexity, and aging infrastructure, as their top connectivity challenges (see Figure 1). Uncertainty around macroeconomic conditions, price volatility, and inflation add to the complexity. For SMBs, the stakes are high. Without robust connectivity, they risk falling behind in an increasingly competitive landscape where agility and innovation are paramount.
To address these challenges, scalable and secure NaaS solutions offer a transformative approach. By leveraging 5G and enterprise-grade infrastructure, NaaS combines advanced connectivity with comprehensive deployment and ongoing support services, enabling organizations to enhance their business strategies without requiring significant capital expenditures or dedicated IT staff.
Combining NaaS service delivery models with powerful and reliable 5G connectivity provides SMBs with the flexibility to scale their operations while ensuring secure and resilient connectivity, all with a simple, subscription-based licensing model. 5G NaaS enables SMBs to focus on growth and innovation, not on managing the day-to-day network. So how can SMBs operationalize a 5G-enabled NaaS?
Key considerations for advanced, secure connectivity services for SMBs.
Figure 1: IDC’s survey data on top connectivity challenges for midsize businesses.
Q. From a networking perspective, what are the top connectivity-related challenges your organization currently faces?
Source: IDC’s Future Enterprise Connectivity Survey 2024, showing results for a 500–999 cohort; n = 150.
IDC recommends that SMBs focus on the following core capabilities of a 5G-enabled NaaS:
- Scalable and agile connectivity: Powerful and reliable fixed wireless 5G provides high-quality connectivity that can be spun up quickly and deployed anywhere.
- Next-generation infrastructure: SMBs shouldn’t settle for consumer-grade devices. Enterprise-grade infrastructure enables high levels of network performance, integrated security, and AI-powered management capabilities.
- Platform-based approaches: A key to reducing the complexity of next-generation network architectures is to leverage platform-based approaches that integrate multiple technologies, including 5G routers,
Wi-Fi access points, switches, security, IoT sensors, and smart cameras, into a single system that a NaaS delivery model manages centrally. - AI-powered management: An intuitive, cloud-based, and centralized dashboard provides real-time insights into devices, network health, and user experiences. Advanced AI functionality recognizes issues before they impact users or performance, automatically fixing problems and security vulnerabilities.
- Integrated security: Security must be built into—not bolted onto—the platform through natively supported premises-based firewalls or cloud-based SASE architectures and strong traffic encryption.
- Comprehensive services: NaaS models manage the full life cycle of the deployment, from the initial scoping of materials to professional installation and ongoing management, upgrades, and operations. NaaS models are ideal for SMBs, with consolidated licensing and predictable pricing.
The AI era is changing how organizations—especially SMBs—are approaching their digital transformation strategies. IDC predicts that by 2027, 60% of SMBs will invest in AI-driven connectivity technologies to automate network operations, enhance planning, improve user experiences, and optimize security (IDC’s FutureScape: Worldwide Small and Medium-Sized Business 2025 Predictions, December 2024).
This shift reflects the growing need for intelligent, adaptive networks that can keep pace with the demands of modern SMBs. But accessing advanced technology can’t add more complexity.
With a 5G-enabled NaaS model, SMBs gain the agility, security, and scalability to thrive in today’s digital-first economy while reducing complexity, lowering costs, fostering innovation, and accelerating digital transformation.
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Frequently asked questions (FAQs).
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Network as a Service (NaaS) is a subscription-based model that delivers secure, scalable connectivity without requiring large upfront investments. For SMBs, it provides enterprise-grade performance with reduced complexity and predictable costs.
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The NaaS model helps SMBs scale quickly, adopt AI-powered tools, and securely connect employees and customers. By removing infrastructure burdens, SMBs can focus on innovation and customer experience.
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5G enhances NaaS by delivering ultra-fast, low-latency connections. This supports real-time applications, AI workloads, cloud services, and IoT devices essential for SMB growth.
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Unlike traditional infrastructure, which requires large capital outlays and IT management, NaaS offers flexibility, managed services, and continuous upgrades in a subscription model.
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SMBs often struggle with limited IT staff, aging infrastructure, security concerns, and rising costs. The NaaS model helps overcome these challenges with enterprise-grade, managed solutions.
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NaaS includes managed services such as deployment, monitoring, and upgrades, reducing the need for in-house IT expertise.
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NaaS integrates security through built-in firewalls, traffic encryption, and cloud-based SASE solutions to protect data and devices.
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AI-powered dashboards identify and resolve network issues proactively, improving reliability, reducing downtime, and enhancing user experience.
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Subscription models provide predictable monthly pricing, eliminating large capital investments while consolidating licensing and operations.
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Examples include enabling hybrid work, supporting connected retail stores, powering IoT devices in manufacturing, and providing secure connectivity for remote offices.
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