Editor’s Note: This blog was originally published in 2022 and has been fully updated to ensure accuracy and comprehensiveness. All sections have been expanded and refreshed to reflect the latest best practices and market insights for MSPs and VARs building their own Network as a Service offerings.
Network as a Service (NaaS) has quickly become one of the most in-demand enterprise networking solutions, but that doesn’t mean it’s easy to sell.
For Managed Service Providers (MSPs), the challenge comes down to more than just convincing a customer of the value, you also have to navigate a web of technical requirements, financial considerations, and competing delivery models before you can even make your first pitch.
We know this first-hand.
Before TechGrid became a software company, we operated as an MSP from 2006 to 2021. During that time, we built our own NaaS offering that achieved an 80% conversion rate when proposed to customers. Those results didn’t happen by accident. They were the product of careful planning, trial and error, and a clear understanding of what makes the right approach profitable.
This guide distills what we learned into practical steps so you can build your own NaaS offering with confidence.
What is NaaS?
At its core, Network as a Service is a utility-like subscription model that allows businesses to consume network infrastructure the way they consume electricity or internet—paying for what they use, when they use it, without having to own or maintain it.
A NaaS offering can include one or several components which typically includes:
• Hardware
• Software
• Management tools
• Licenses
• Internet access
• Lifecycle services
The benefit for your customer is simple: they can reduce upfront costs, stay current with built-in refresh cycles, strengthen security, and scale services as their needs change.
What is a Network as a Service Provider?
A Network as a Service Provider (NSP) can be either a Value-Added Reseller (VAR) or a Managed Service Provider (MSP) with both the credentials and capabilities to deliver NaaS effectively. This role goes beyond reselling—it requires owning the service lifecycle and ensuring performance from day one through renewal.
To be considered a qualified NSP, you’ll need:
- Manufacturer and industry certifications for the solutions you provide.
- A modern client portal to deliver a seamless customer experience.
- 24×7×365 network operations center (NOC) for proactive monitoring and incident response.
- Full lifecycle services including design, installation, configuration, monitoring, troubleshooting, remediation, and recycling.
Why You Should Embrace the VAR/MSP Hybrid Model for NaaS
The most successful NaaS providers blend the strengths of Value-Added Resellers (VARs) and Managed Service Providers (MSPs) into one hybrid model. This combination allows you to capture both the initial equipment sale and the long-term service revenue while giving customers a complete, end-to-end solution.
Here’s how each side plays a role:
VAR capabilities – Sourcing the right hardware and software, understanding customer requirements, and ensuring an optimal initial deployment.
MSP capabilities – Delivering ongoing monitoring, security management, and IT support, and building recurring revenue through service contracts.
By integrating these capabilities, you can:
- Enhance customer centricity with solutions that meet immediate needs and provide ongoing value.
- Increase total contract values by bundling hardware sales with managed services.
- Adapt to market demands with the flexibility to offer consumption-based models customers now expect.
Any service provider can become a NaaS provider using TechGrid. Schedule a 1:1 consultation now.
The Infrastructure You Need to Deliver NaaS Successfully
Selling NaaS profitably depends on your ability to deliver it reliably and at scale. That requires more than a sales strategy, it demands a well-integrated infrastructure of systems, processes, and partnerships. The easiest way to think about it is in layers, starting with what the customer sees, moving into your internal workflows, and then expanding outward into operations, finance, and ecosystem support.
Customer-facing foundation
This is where customers interact directly with your NaaS offer. If their experience feels modern and seamless, they’ll trust you with the rest.
- Unified client portal – A single place to manage SLAs, place orders, open tickets, and pay invoices creates a consistent digital experience that eliminates friction.
- Network performance monitoring – Uptime alone doesn’t tell the story. Performance insights show how the network feels for end users, proving the value of the subscription model.
Core systems and processes
Behind the scenes, your technology stack is what makes the service scalable. Without integration and automation, your NaaS offering will struggle to grow.
- Connected tech stack – Linking CRM, quoting, PSA, ERP, accounting, and distributor systems ensures proposals, orders, and invoices flow without manual re-entry or errors.
- CPQ built for NaaS – Use a digital catalog with advanced bundling to package hardware, software, and services into one solution. Simple workflows let you combine subscription, usage-based, and one-time pricing in a single quote, so deals reflect how customers actually want to buy.
- ITSM platform – Centralizing assets, tickets, and documentation reduces wasted effort and gives customers confidence that issues are handled systematically.
- Automated subscription management – From creation to renewal, subscriptions run on autopilot. You can define packages, pricing tiers, and payouts at setup; track usage, upgrades, and support as customers evolve; and automate renewals or cancellations at the end of each term. This keeps revenue predictable, costs aligned, and customer experiences seamless without manual intervention.
Service assurance and operations
Once services are deployed, ongoing reliability and security are what differentiate great providers from everyone else.
- Full lifecycle service capabilities – From design and deployment to monitoring, updates, and recycling, covering the entire lifecycle builds long-term customer trust.
- NOC and SOC tools – Continuous monitoring for performance and security ensures customers get proactive defense instead of reactive support.
- Cybersecurity tools – Integrate SOC platforms, threat detection, and compliance monitoring into your NaaS stack so customers gain 24×7 protection as part of the service. By bundling advanced security into your offering, you reduce risk for the customer while creating a higher-value, stickier subscription.
Financial and ecosystem enablers
Finally, growth depends on how you fund deals, manage risk, and expand your reach through partners.
- Integrated tech finance – Owning the customer relationship and the subscription keeps you in control, while offloading liability and compliance to the finance layer. This enables scalable monthly payments without turning your business into a bank.
- OEM and service partnerships – No single vendor can do it all. By cultivating certified partnerships, you gain flexibility and resilience to design the right solution for every customer.
- Training and enablement – Even the best infrastructure fails without a prepared team. Training ensures sales reps sell on value and outcomes while engineers deliver on the promises made.
Choosing Your NaaS Delivery Model
Once your infrastructure is ready, you’ll need to decide how you’ll actually bring NaaS to market. There are three main models to choose from, each with different implications for control, scalability, and profitability.
-
The OEM-Led Model – The manufacturer delivers the NaaS service directly, which limits your ability to customize or influence margins.
-
The Single Provider Model (e.g., Nile, Meter) – A centralized provider delivers the full stack, with your business adding complementary services.
-
The Platform-Enabled Model – You maintain control over pricing, packaging, and the customer relationship, while using a platform to connect all the necessary systems and partners.
Common Pitfalls When Rolling Out NaaS
Even with a strong infrastructure in place, many MSPs and VARs find themselves struggling in the early stages of rolling out NaaS. It’s rarely because the demand isn’t there, more often it’s because the launch was rushed or certain operational realities were overlooked. Over the years, we’ve seen a clear pattern of avoidable mistakes that can slow growth and frustrate both your team and your customers.
Some of the most common pitfalls include:
- Over-customizing every deal in a way that makes it impossible to scale the service efficiently.
- Underestimating integration complexity between internal systems, partners, and distributors.
- Overlooking the onboarding experience, leaving customers unsure of next steps or value delivery.
- Misaligned pricing and contract terms that don’t reflect customer expectations or your true cost of delivery.
- Insufficient sales team training, leaving reps selling features instead of business outcomes.
What are the Benefits of Selling NaaS?
While the operational lift is real, the upside is equally significant. When executed well, NaaS can transform your revenue model and strengthen your position in the market.
The benefits include:
Transformed Service Delivery
NaaS enables MSPs to transition from selling individual products to offering comprehensive solutions.
This allows customers to shift their focus from technical specifications and manufacturer reputations to ensuring their network operates like a utility — reliable, with high uptime, and optimized performance. This shift enhances the value proposition for MSPs, emphasizing the delivery of outcomes and performance rather than just the components themselves.
Increased Company Valuation
Selling NaaS can significantly boost your company's valuation, potentially up to 8X, by growing annual recurring revenue. By easily converting hardware and services quotes into comprehensive, bundled, and subscription-based technology solutions, MSPs can create a robust and predictable revenue model. This increases financial stability and attractiveness to investors, further driving company growth.
Higher Customer Retention
With NaaS, customers are more likely to stay engaged due to the ongoing nature of the service. The continuous relationship fostered by a subscription model promotes higher customer retention and loyalty, leading to increased lifetime value of each customer.
Improved Cash Flow
Selling NaaS allows MSPs to transition from one-time sales to a subscription-based model, ensuring a steady and predictable revenue stream. The subscription model associated with NaaS helps MSPs manage cash flow more effectively. Regular monthly payments ensure:
- Consistent influx of funds
- Reduced financial strain of fluctuating revenues
- Better resource allocation
Upsell & Cross-sell Opportunities
NaaS creates opportunities for MSPs to upsell additional services and cross-sell complementary products. As customers experience the benefits of the subscription model, they may be more inclined to invest in other managed services, further boosting MSPs' revenue.
Simplified Service Delivery and Automation
NaaS allows MSPs to automate the entire service delivery process, centralizing information and coordinating all stakeholders in one platform. This:
- Reduces administrative overhead
- Streamlines operations and increases efficiency
- Allows the MSP to focus on higher-value activities
Greater Flexibility
NaaS enhances MSPs' ability to be agile and responsive to customer needs, especially in disruptive situations. The flexibility of the subscription model allows MSPs to scale services up or down quickly, adapting to changing market demands and customer requirements.
Enhanced Security and Monitoring
NaaS enables MSPs to offer advanced security and monitoring tools as part of their service package. Providing 24/7 network security and management enhances the value proposition and helps build trust with customers, positioning MSPs as reliable and comprehensive service providers.
Sustainable Practices
By facilitating proper recycling of end-of-life equipment and promoting a sustainable approach, MSPs can align themselves with environmentally conscious customers. This commitment to sustainability can enhance the MSP’s brand reputation and appeal to a broader customer base.
Faster Onboarding and Expansion
NaaS simplifies the process of bringing new locations online, making it faster and more efficient. This efficiency allows MSPs to onboard new customers and expand their service reach with minimal disruption and effort.
Access to Expert Resources and Talent
Selling NaaS allows MSPs to provide their customers with access to expert resources and specialized skills. This enhances the MSP's value proposition and can lead to additional revenue streams through professional services and consulting.
Customer Benefits of NaaS Solutions
From the customer perspective, financing a NaaS solution enables them to acquire more comprehensive network implementations than traditional purchasing methods allow. This leads to:
- Standardization of manufacturers and configurations across the organization, reducing administration and support overhead for the MSP due to increased homogeneity.
- A predictable refresh cycle ensures customers remain current with the latest technology, aligning network performance closely with the capabilities of client devices and reducing support tickets for the MSP.
While these benefits enhance the customer's network performance and operational efficiency, they also serve as compelling selling points for you as the MSP.
ROI Timeline and KPIs to Track
Launching a NaaS offering isn’t just about “going live”, but about hitting measurable milestones that prove the model is working. The MSPs and VARs who succeed the fastest are the ones who define their success metrics up front and track them consistently. Doing this helps you make adjustments early, avoid costly missteps, and communicate progress to both internal teams and investors.
Some of the most telling metrics to watch include:
- Time to first deal closed, which indicates how quickly your sales team can convert interest into revenue.
- Gross margin per NaaS deal compared to traditional project work, showing whether your new model is actually more profitable.
- ARR growth over the first 12–18 months to confirm recurring revenue is scaling.
- Customer churn rate, which is a leading indicator of retention and satisfaction.
- Quote turnaround time, giving you a clear picture of sales efficiency and responsiveness.
How GLS Transformed Network Projects into Predictable, High-Value NaaS Revenue
GLS, an MSP delivering enterprise-grade IT and telecom services with 24/7 NOC and SOC support was stuck in a cycle of reactive, one-off firewall replacements until they adopted a Network as a Service (NaaS) model powered by TechGrid. What had been transactional quotes turned into scalable solutions that unlocked bigger deals and recurring revenue.
In just 60 days, a modest pilot grew into a full network refresh:
- A $5K pilot transformed into a $100K project through predictable subscription pricing.
- Financial roadblocks disappeared as customers moved from "How do we fund it?" to simply saying, “Let’s do this.”
- GLS shifted from individual hardware projects to repeatable NaaS sales motions, accelerating deals and simplifying conversations.
Curious how this shift changed everything for GLS? Read the full GLS case study to see the details and get inspired for your own approach.
How to Launch in Weeks, Not Years with TechGrid
The idea of building a NaaS offering can feel overwhelming, especially if you’ve only seen it done through years-long internal projects. But the reality is that with the right platform and processes, you can stand up a fully functioning, customer-ready NaaS offering in a matter of weeks. It’s all about focusing on the essential steps, sequencing them correctly, and avoiding unnecessary complexity in your first iteration.
Here’s the typical path we guide MSPs through:
- Configure your digital catalog so your core offerings are defined, priced, and packaged for quick quoting.
- Connect critical apps and distributor APIs to ensure product availability and pricing are always up to date and quoting data syncs seamlessly.
- Enable digital quoting so your sales team can create quotes faster and more consistently using a workflow based on industry best practices.
- Integrate billing and subscription management to automate invoicing and renewals from day one.
- Train your sales team and launch a pilot, using a real customer engagement to refine the process before full rollout.
If you're wondering how to get started without taking on financial risk or losing control, the solution is TechGrid. Built by former MSP operators, TechGrid connects your existing tools and partners together around modern sales and fulfillment workflows that automates and powers NaaS delivery.
You can plug into a NaaS-ready system built on best practices that makes building your own offering simple, fast, and cost-effective. If this sounds like something your business would be interested in, request a 15 minute demo now.
