Zyxel's PAYG Model Signals Shift to 'Network-as-a-Service' for MSPs

By Stephanie Lewis – Strategic Defense & Space Technology

Anaheim, CA – Zyxel Networks is making a significant bet on the future of managed services with the launch of its Pay-As-You-Go (PAYG) billing model for its Nebula cloud networking platform. While flexible billing isn’t new, Zyxel’s approach – coupled with platform enhancements – signals a broader industry shift towards ‘Network-as-a-Service’ (NaaS) and represents a potentially disruptive move in the highly competitive managed service provider (MSP) channel.

The announcement, made earlier this week, enables MSPs to offer usage-based billing to their clients, eliminating upfront commitments and aligning costs with actual service consumption. This model allows MSPs to offer customized packages—fully managed, project-based, or hourly—without the financial risk of traditional licensing agreements. But beyond the billing structure, the move underscores a strategic realignment of how network infrastructure is delivered and consumed.

Addressing a Growing MSP Need

For years, MSPs have struggled with the tension between providing predictable, recurring revenue and delivering flexible solutions tailored to individual client needs. Traditional hardware sales and fixed-price contracts often leave MSPs with unused capacity or clients feeling locked into expensive agreements. “MSPs are increasingly looking for ways to move away from capital expenditure and towards operational expenditure for their clients,” explains a channel analyst who asked to remain anonymous. “This PAYG model directly addresses that need, allowing them to scale services up or down based on actual usage.”

Industry research supports this trend. Gartner predicts a significant increase in NaaS adoption over the next five years, driven by the demand for agility and cost optimization. “We’re seeing a clear shift towards subscription-based networking models,” confirms an MSP owner who preferred not to be named. “Clients are no longer interested in owning and managing complex network infrastructure. They want a seamless, fully managed experience, and they want to pay for what they use.”

Nebula Platform Enhancements: Beyond Billing

The PAYG model is supported by a suite of enhancements to Zyxel’s Nebula platform. Key features include a dedicated MSP portal for centralized management, templates and synchronization tools for streamlined deployment, OpenAPI integration for compatibility with existing PSA and RMM systems, and in-platform support ticketing for faster resolution of issues. Crucially, Zyxel has also expanded its Role-Based Access Control (RBAC) features, bolstering security and governance within multi-tenant environments.

“The platform enhancements are just as important as the billing model,” notes another MSP executive who requested anonymity. “The dedicated portal, for example, gives us a single pane of glass view of all our clients’ networks, simplifying management and reducing the risk of errors. The RBAC features are also critical, allowing us to delegate access to different team members based on their roles and responsibilities.”

Competitive Landscape and Potential Disruption

Zyxel is not alone in offering cloud-managed networking solutions, but its PAYG model sets it apart from established players like Cisco (Meraki), Juniper Networks (Mist AI), and Aruba Networks (Aruba Central). While competitors offer subscription-based pricing, few have fully embraced a true usage-based model.

“Cisco Meraki, for example, is a strong platform, but its pricing is still largely based on fixed monthly fees,” explains an industry consultant. “Zyxel’s PAYG model gives MSPs more flexibility and allows them to compete more effectively on price.”

However, disrupting the established order won’t be easy. Cisco, Juniper, and Aruba have significant market share and strong relationships with MSPs. To succeed, Zyxel will need to continue innovating and demonstrating the value of its PAYG model.

“Zyxel’s move is a bold one,” says one channel analyst. “It has the potential to shake up the market and force other vendors to rethink their pricing models. But ultimately, the success of this strategy will depend on whether MSPs and their clients embrace the PAYG model and see the benefits of a truly flexible, usage-based networking solution.”

Security Considerations

The expanded RBAC features within the Nebula platform are a crucial component of Zyxel’s strategy. By allowing MSPs to granularly control access to network resources, the platform helps mitigate security risks and ensure compliance with industry regulations. “Security is paramount for MSPs,” says a cybersecurity expert. “The ability to delegate access based on roles and responsibilities is essential for protecting client data and preventing unauthorized access.” Zyxel's focus on RBAC demonstrates a commitment to security that will be crucial for building trust with MSPs and their clients.

The Future of Network Services

Zyxel’s PAYG model is more than just a new billing option; it represents a fundamental shift in how network services are delivered and consumed. As the demand for agility and cost optimization continues to grow, we can expect to see more vendors embrace usage-based pricing and cloud-managed solutions. The future of network services is undoubtedly moving towards a more flexible, scalable, and consumption-based model – and Zyxel Networks is positioning itself as a leader in that transformation.