AI pushes public cloud-managed LAN market to new heights: Dell'Oro

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Analyst firm Dell'Oro Group predicted concerns about AI cybersecurity threats and a desire to focus on AI use cases will push the Public Cloud-managed LAN market into a phase of accelerated growth from 2026 to 2030.

Public Cloud-managed LAN revenue is expected to grow by double-digits in 2026 and outpace the LAN market over the next five years.

All told, Dell'Oro expects cloud-managed network revenue to top $10 billion over its forecast period. 

Dell'Oro Senior Director Siân Morgan noted that vendors including Arista, Cisco, Extreme and HPE are deepening their Public Cloud-managed LAN feature sets. But LAN-as-a-Utility startups are starting to shake up the market. 

"LAN-as-a-Utility vendors Meter and Nile are expanding the Campus NaaS (CNaaS) market by developing channel relationships and establishing a global presence," continued Morgan, "CNaaS revenue from LAN-as-a-Utility vendors, made up of highly automated WLAN and campus switches, doubled in 2025 and the elevated growth is expected to continue."

Read the full press release here