Cloud-Managed Network Revenue Set to Exceed $10 Billion by 2030 Amid AI Advances

Cloud-Managed Network Revenue Set to Exceed $10 Billion by 2030



The Dell'Oro Group, a respected authority in the telecommunications and data center sectors, has released an insightful report forecasting over $10 billion in revenue for cloud-managed networks by 2030. The report highlights the pivotal role of artificial intelligence (AI) in shaping the landscape of network management, especially with growing concerns around cybersecurity threats.

Accelerated Growth Driven by AI Integration


The report indicates that from 2026 to 2030, the public cloud-managed Local Area Network (LAN) sector is poised for accelerated growth. Siân Morgan, a senior director at Dell'Oro Group, emphasizes that as vendors like Arista, Cisco, Extreme Networks, and HPE enhance their public cloud-managed LAN capabilities, more enterprises are likely to delegate LAN management to these experienced vendors. This shift not only alleviates the burden of network management but also allows businesses to concentrate on implementing AI-driven initiatives.

The Rise of LAN-as-a-Utility Vendors


An interesting development in this market is the emergence of LAN-as-a-Utility startups, such as Meter and Nile. These companies are significantly broadening the Campus Network as a Service (CNaaS) market. Their efforts in building relationships with channel partners and establishing a global footprint have already shown impressive results, with CNaaS revenues doubling in 2025.

Morgan notes that the increasing functionality and automation features of campus switches and WLANs have made CNaaS offerings more appealing. This trend is expected to continue as businesses strive for efficiency and agility in their networking solutions.

Key Insights from the Report


1. The report outlines that the public cloud-managed LAN market is projected to undergo double-digit growth within the next year, significantly outpacing overall LAN market growth.
2. There’s a note of uncertainty among new customers about HPE’s dual cloud management platforms following its acquisition of Juniper, although existing customers appear reassured.
3. The evolving functionality of CNaaS is driving revenues upward, reinforcing the case for businesses to consider these services seriously.

The comprehensive assessment of the CNaaS and public cloud-managed LAN markets details key characteristics, available services, and forecasts over the next five years. It not only measures revenues and shipment figures but also compares them against traditional campus LAN equipment sales, including wireless LAN and ethernet switching revenues from manufacturers.

Conclusion


The insights from the Dell'Oro Group’s report underscore a fast-evolving market influenced by the integration of AI technologies in network management. As organizations seek to secure their networks against cyber threats, the adoption of cloud-managed LAN solutions is becoming more prevalent, setting the foundation for a robust technological future in network management. Companies interested in efficient, secure, and scalable network solutions should keep a close eye on this rapidly growing market and consider leveraging CNaaS and other cloud-managed services to stay competitive.

For further information about the report and its findings, Dell'Oro Group encourages interested parties to reach out for a deeper understanding of the market dynamics at play.

Topics Telecommunications)

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