SD-WAN vs. MPLS for Multi-Location Businesses
Multi-location businesses need reliable, performant connections between sites. For years, MPLS (Multiprotocol Label Switching) was the only enterprise-grade option. SD-WAN has changed the equation.
MPLS Overview:
MPLS is a private, carrier-managed WAN technology that provides guaranteed bandwidth, low latency, and built-in QoS between locations.
Advantages: - Guaranteed bandwidth and SLA (99.99% uptime typical) - Predictable latency (critical for real-time applications) - Built-in QoS — carrier prioritizes your traffic classes - Fully managed by carrier — minimal in-house expertise needed - Private network — traffic never touches the public internet
Disadvantages: - Expensive ($500-3,000+ per site per month depending on bandwidth) - Long provisioning times (30-90 days for new circuits) - Inflexible — adding bandwidth or sites requires carrier coordination - Cloud traffic must backhaul through hub — adds latency - Vendor lock-in with multi-year contracts
SD-WAN Overview:
SD-WAN (Software-Defined Wide Area Network) uses commodity internet connections (broadband, fiber, cellular) with intelligent overlay software to create a virtual private WAN.
Advantages: - 50-70% cost savings vs. MPLS - Uses any internet connection — broadband, fiber, LTE/5G - Direct cloud access from each site (no backhaul penalty) - Application-aware routing — automatically chooses the best path - Rapid deployment (days vs. months) - Centralized management via cloud portal - Easy to add/remove sites
Disadvantages: - Internet-dependent — quality varies by ISP - No guaranteed bandwidth (best-effort internet) - Requires edge appliance at each site - More complex initial design and policy configuration - Encryption overhead (typically negligible with modern hardware)
Cost Comparison (10 sites, 100Mbps per site):
| Category | MPLS | SD-WAN | |----------|------|--------| | Per-site circuit | $1,500/mo | $300/mo (dual broadband) | | SD-WAN appliance | N/A | $500-1,500 one-time per site | | Controller/license | N/A | $50-150/site/mo | | Monthly total (10 sites) | $15,000/mo | $4,500/mo | | Annual savings with SD-WAN | — | $126,000 |
When to Keep MPLS:
- Real-time trading/financial applications requiring guaranteed latency - Regulatory requirements mandating private circuits (some government, defense) - Locations where internet quality is poor or unavailable - Organizations with 3+ year MPLS contracts (add SD-WAN at renewal)
When SD-WAN Wins:
- Cloud-first organizations (Microsoft 365, Salesforce, AWS) - Businesses with 5+ locations where MPLS costs are significant - Retail chains with many branches needing cost-effective connectivity - Organizations adding locations frequently - Anywhere internet quality meets application requirements
Hybrid Approach (Most Common):
Many organizations keep MPLS for critical hub sites while deploying SD-WAN at branches. The SD-WAN overlay connects all sites and uses MPLS as a preferred underlay at the hub while using internet at branches.
SD-WAN Vendors to Evaluate:
- Cisco Viptela/Meraki: Best for existing Cisco shops - Fortinet: Strong security integration - VMware VeloCloud: Cloud-native, good for multi-cloud - Palo Alto Prisma SD-WAN: Best security story - Aruba EdgeConnect: Good for HPE/Aruba networks
Summit DNC designs and deploys SD-WAN solutions for multi-location businesses across Southern California. We evaluate your existing WAN, design the SD-WAN architecture, and manage the transition. Contact us for a WAN assessment.
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