How Enterprises Are Implementing NaaS (And Leaving MPLS)

NaaS and middle mile are fairly new concepts in the industry, but they're old hat on TeleGeography's podcast. In past episodes, we've spotlighted the framework, concept, market players, and products available.

Today, we look at things from another perspective.

Ameet Naik, Director of Product Marketing at Cloudflare, takes center stage to help us tackle some real-world use cases. You'll laugh. You'll cry. You'll ponder the post-MPLS SD-WAN network and the future of the WAN business.

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Key Takeaways

Shifting Away from Traditional MPLS and Embracing Internet-Centric Networking

We're seeing a significant shift away from traditional MPLS networks, which were built to solve WAN problems 10-15 years ago, offering benefits like any-to-any connectivity and gold-plated SLAs. However, MPLS contracts became problematic during the pandemic when organizations had to rapidly reconfigure their physical footprints, often being locked into paying for connections they no longer needed.

The experience of running businesses largely over the internet during the pandemic forced a re-evaluation of the WAN, leading organizations to look for alternatives that offer more flexibility and agility.

Many organizations are currently in a hybrid state, managing a mix of legacy MPLS and newer approaches. The internet is increasingly being asked to become the enterprise and corporate network, although this brings challenges related to reliability, availability, performance, and security.

Evolving Commercial Models and the Need for Flexibility in a Dynamic World

The traditional MPLS commercial model involves predictable, long-term contracts, which customers are used to. NaaS and cloud models often introduce more flexibility but also potential unpredictability in cost with pay-per-use models.

Customers are consistently expressing a need for flexibility and agility, particularly given the uncertainty around future work policies (e.g., hybrid work) and the dynamic business climate.

A shift in commercial models reflects the broader reality that IT infrastructure teams must be able to react flexibly to changes in business decisions, physical footprints, and evolving traffic patterns driven by factors outside their direct control, such as widespread video calls and the rise of IoT/OT devices.