Forecast: AI to push cloud-managed network revenue over $10bn

A recent report by Dell'Oro Group indicates a significant surge in the public cloud-managed LAN market, forecasting its value to surpass $10 billion by 2030. This accelerated growth is primarily attributed to the pervasive influence of artificial intelligence (AI) and the heightened focus on mitigating AI-driven cybersecurity risks. Enterprises are increasingly opting to outsource their Local Area Network (LAN) management to specialized vendors, including industry leaders such as Arista, Cisco, Extreme, and HPE. This strategic shift allows organizations to benefit from consistent and timely security updates, thereby enhancing their defensive posture against evolving cyber threats. Furthermore, by entrusting LAN management to external experts, businesses can reallocate their internal IT talent and resources towards more strategic initiatives, particularly the critical task of integrating and optimizing AI applications within their operations. This enables a more focused approach to AI implementation, driving innovation and efficiency across various business functions. The report also sheds light on the rapid expansion of the Campus Network as a Service (CNaaS) market. Revenue generated by LAN-as-a-Utility providers, which specialize in highly automated wireless LAN (WLAN) and campus switches, experienced a remarkable doubling in 2025. This impressive growth trajectory is expected to continue, fueled by the continuous development of new functionalities within CNaaS offerings and the expansion of channel partnerships. The appeal of CNaaS lies in its ability to provide flexible, scalable, and operationally efficient networking solutions that align with the dynamic demands of modern cloud-first and AI-centric environments. The trend underscores a broader industry movement towards managed services in cloud networking, where the complexity of maintaining robust and secure network infrastructure is offloaded to providers, allowing enterprises to concentrate on their core competencies and technological advancements like AI.