SD-WAN vs. MPLS: Which network solution is best for your business?

A growing number of enterprises are shifting toward a multi-cloud environment with the rise of remote and hybrid work. In fact, 76% of organizations have already adapted to a multi-cloud infrastructure.

These dynamic networks offer companies many reported advantages, such as scalability, agility, and optimized performance. When it comes to a company’s digital transformation and transition to a multi-cloud environment, Software-Defined Wide-Area Networking (SD-WAN) often emerges as a top consideration.

What is SD-WAN?

Many companies with a multi-cloud network have replaced the conventional Multiprotocol Label Switching (MPLS) transport protocols with SD-WAN. 

SD-WAN refers to a software-based method of managing wide-area telecommunication networks. With SD-WAN, you can combine transport services (including MPLS circuitry) through encrypted overlay tunnels to communicate and prioritize enterprise data across internal applications. 

There is a good reason for SD-WAN’s widespread appeal. While the MPLS has proven reliable for decades in handling predetermined communication pathways, it lacks the flexibility and agility for managing modern multi-cloud environments with vast and dispersed endpoints. 

Unpacking the SD-WAN architecture

SD-WAN networks run on an abstract infrastructure divided into a control and forwarding plane. The control plane functions from a centralized location as a remotely controlled network, eliminating the need for on-premise technicians. At a granular level, SD-WAN features three components that comprise its virtualized infrastructure, removing the reliance on specific hardware. 

SD-WAN Edge 

The SD-WAN Edge refers to the user endpoint within the network. These may include multi-cloud systems, on-premise data centers, and SaaS platforms. 

SD-WAN Controller

An SD-WAN Controller offers a transparent view of connected networks and facilitates decision-making policies for orchestrators. Essentially, an SD-WAN controller provides centralized management of enterprise data flow and authenticates devices linked to your network. 

SD-WAN Orchestrator

Your designated SD-WAN Orchestrator manages and systematizes policies and traffic among authorized controllers. The component streamlines intuitive workflows across your enterprise networks (e.g., branch offices). Essentially, orchestrators are the definitive bridge between your controller and edge routers. You can upgrade orchestrator functions by providing enhanced analytics and performance SLAs that expedite troubleshooting processes and network fixes.  

Top SD-WAN providers

The modern market features an assortment (and an ever-growing number) of SD-WAN vendors, each providing unique features and functionalities. Therefore, you will benefit from researching the leading vendors to access the best solutions in network function virtualization (NFV) and software-defined networking (SDN) deployments.  

Fortinet Secure SD-WAN

With superior security standards, Fortinet offers services that drive high-performance network capabilities. The vendor’s SD-WAN structure helps your organization manage precious enterprise data without compromising speed or function. Also, Fortinet’s SD-WAN services have undergone rigorous testing, with Gartner validating the solution for its high performance, reliable security, and low total cost of ownership (TCO). 

Using Fortinet’s SD-WAN technology guarantees several improvements to communication processes with built-in encryption protection and sandboxing features that prevent data loss. Fortinet provides frictionless integration to your branch infrastructure for smooth data management across LANs, optimizing hybrid SD-Branch layouts. 

Versa Networks (OS)

Versa Networks’ SD-WAN solution features an integrated platform with premium security capabilities. The technology’s intuitive functions include multi-cloud connectivity, full multi-tenancy and micro-segmentation of businesses, and context-based network and security policies throughout registered networks. 

Versa prioritizes optimal network security as one of its core missions. In 2021, Gartner recognized Versa Networks as a visionary in the Gartner® Magic Quadrant™ for Network Firewalls, emerging as the preferred choice from an in-depth comparison of the top 19 vendors in the communications industry. The SD-WAN offers access to Versa’s Secure Access Service Edge (SASE), enhancing user security through multi-factor authentication, data protection, and SSL decryption.

Aryaka

Aryaka is an innovative service provider that combines SD-WAN technology with a secure web gateway as a one-stop network solution. Specifically, Aryaka’s hybrid approach equips your organization with a zero-trust WAN that significantly reduces business and operational risks. As a result, Aryaka positions itself as a leader among SD-WAN vendors, promoting the fastest service of its kind within the industry. 

Gartner has recognized the zero-trust vendor as the customer’s choice for three consecutive years through outstanding KPI standards, including 99.999% SLA performance and uptime and a 65 net promoter score rating five times the industry average. Your business can manage optimal security and communication performance from a single contact point through Aryaka’s SD-WAN layouts. 

Understanding the pros of SD-WAN

SD-WANs give enterprise networks a general boost from conventional MPLS systems as they improve connectivity across separate applications and off-site locations. 

Business traffic prioritization

SD-WAN helps your organization prioritize critical enterprise data by selecting the most cost-effective and efficient communication path. When you set up the technology’s load-balancing and traffic-steering capabilities, your SD-WAN network can recognize business applications and allocate bandwidth volume according to individual service requirements. Traffic steering lets your team manage multiple parallel connections in business traffic with a responsive system, providing rate-limitless sensitive applications with optimal bandwidth.

Affordability

An SD-WAN approach applies private and distributed data exchange and control measures, which function seamlessly across diverse project environments. The process optimizes network functionality and cost-effectiveness by securing data from the cloud and immediate networks. 

Application performance optimization

SD-WAN’s structured infrastructure drives optimal application performance across enterprise networks. Specifically, the agile transport mode fulfills the latest enterprise compliance mandates and automates traffic steering based on business priorities. Additionally, SD-WAN provides a centralized control center for managing enterprise data across multi-cloud endpoints, connecting with authorized SaaS and IaaS collaborators and vendors without complication. 

Diverse transport methods

With SD-WAN networks, users can access multiple transport channels, including direct broadband connection, 5G, and traditional MPLS circuits. The flexible arrangement improves data availability for undisrupted and optimized communications. You can expect optimal application performance across cloud systems, on-premise servers, and SaaS platforms like Microsoft 365 or Salesforce. 

The cons of SD-WAN

While SD-WAN networks seem like a step in the right direction in multi-cloud environments, they pose some user considerations as a developing technology.  

No on-site security function 

SD-WAN networks lack an on-site security function, so you must separately install and manage a security policy to safeguard networks against online threats. An unprotected SD-WAN infrastructure might face considerable risks from data breaches such as the Colonial Pipeline Hack, which resulted in significant data loss and reputational damage. 

No Quality of Service (QoS) under specific scenarios

Communication networks that rely on SD-WAN provisions lack a proper QoS. Essentially, these networks will not receive the full technical benefits of SD-WAN, including path control, traffic shaping, and forward error correction. 

Vendor concerns

SD-WAN vendors may provide their services and equipment at a higher cost. Also, due to the variability of service standards, some vendors may need more capability to service software-based networking (SDN). 

Revisiting MPLS 

In the 1990s, MPLS replaced standard internet protocol (IP) routing and became the primary transport method for enterprise data. While the infrastructure offers scalability, optimized bandwidth utilization, and enhanced security – by serving as a virtual private network – it requires installing and maintaining physical links. This process has become increasingly complex, costly, and impractical in a progressively multi-cloud landscape.  

MPLS infrastructure

MPLS is a protocol-independent solution with predetermined paths between routers in the MPLS network; each label comprises four components:

• The label value that determines the direction of the data packet
• The traffic class field
• The bottom of the stack flag
• The time-to-life (TTL) field

Functionalities of the MPLS

The MPLS moves network traffic through predetermined labels instead of conventional addresses, guiding the data through private WANs (wide-area networks).

MPLS functions as layer 2.5 in the OSI seven-layer hierarchy between data links that use LANs and networks that run on internet-wide addressing. This infrastructure attributes a forwarding equivalence class (FEC) to each data packet within a network, which routers can decipher by comparing them against descriptive tables.

The routers update the outermost layer of the data packet as it travels through the FEC pathway and to the next hop, which is examined and submitted to the next layer. Users of the MPLS method can customize the information for each packet, essentially driving top performance in unified networks.

Private MPLS networks can provide your organization with a consistent and reliable means of managing communications in cloud-based environments. 

Pros of MPLS

Your MPLS transport modes remain segregated from the public internet, making the infrastructure invulnerable to prevalent web-based attacks such as distributed denial of service (DDoS). As such, the enhanced security of MPLS offers the optimal performance of real-time data transportation by avoiding potential interceptions and packet loss within the open internet.  

Despite the general security of MLPS (with SD-WAN combinations), some decision-makers may seek added protection from automated cloud monitoring across public and private connections. 

Cons of MPLS

Most of the downsides to MPLS relate to its physical limitations and high cost compared to SD-WAN alternatives. In its original design, the MPLS catered to organizations communicating through remote branches of enterprise data centers. MPLS would conventionally backhaul data from branch offices for comprehensive security processing and distribution through on-premise hubs. However, many companies now prefer cloud services over MPLS. Additionally, the backhauling process often increases latency and reduces application performance.

Comparing SD-WAN with MPLS

A significant highlight of SD-WAN, unlike MPLS, lies in its transport-agnostic overlay structure. Your organization can benefit from the arrangement by applying and modifying policies across your WAN from a centralized location. Alternatively, MPLS functions via predetermined routes through physically installed connections, but its fixed circuits make managing changes across multiple user environments costly and complex. 

Although SD-WAN might replace MPLS as the more popular transport choice for some companies, the technologies could co-exist depending on your enterprise arrangements. For instance, some companies may adopt a hybrid network management approach. Specifically, decision-makers would restrict MPLS use to on-premise legacy applications while offloading cloud-based programs to SD-WAN.

Additionally, some organizational leaders have adopted internet-augmented MPLS with SD-WAN. The advanced process increases organizational flexibility by enhancing MPLS with internet broadband links. These links prioritize networking decisions according to specific requirements, such as application type and optimal bandwidth volume. 

Hybrid approaches

Many organizations are adopting hybrid approaches that combine the strengths of SD-WAN and MPLS. This strategy allows businesses to optimize performance and cost-effectiveness by leveraging the unique benefits of each technology for specific use cases.

How hybrid SD-WAN/MPLS solutions work

A hybrid approach integrates MPLS circuits with SD-WAN’s flexible, software-defined overlay. MPLS handles latency-sensitive and mission-critical applications that require guaranteed Quality of Service (QoS), while SD-WAN manages less critical traffic using cost-effective broadband or other transport methods. By dynamically routing traffic based on application requirements, hybrid setups ensure that each data type is delivered efficiently and securely.

For example:

• MPLS role: Ensures low-latency, high-reliability communication for applications like VoIP, video conferencing, and financial transactions.
• SD-WAN role: Routes non-critical traffic, such as email, file backups, and SaaS applications, through broadband connections, reducing MPLS bandwidth requirements and costs.

Scenarios where hybrid approaches excel

1. Real-time applications with high bandwidth demand
   Businesses requiring uninterrupted service for real-time applications, such as hospitals using telemedicine or financial institutions running stock trading platforms, can dedicate MPLS to these tasks while leveraging SD-WAN for less critical operations.
2. Multi-branch organizations
   Enterprises with numerous branch offices can use MPLS for their headquarters and key locations, ensuring consistent performance for sensitive operations while using SD-WAN to connect smaller branches with broadband.
3. Global operations with varying network needs
   Hybrid solutions are ideal for multinational organizations with offices in regions where MPLS availability or affordability varies. In these cases, MPLS can be prioritized in key regions while SD-WAN manages connections in remote or less-developed areas.
4. Disaster recovery and business continuity
   By combining MPLS and SD-WAN, businesses can create highly resilient networks with failover capabilities. If MPLS circuits experience outages, SD-WAN dynamically reroutes traffic to maintain uptime.
5. Cloud-first strategies
   Hybrid approaches enable organizations transitioning to cloud-based operations to retain MPLS for legacy applications while offloading cloud workloads to SD-WAN. This ensures seamless performance across both on-premise and cloud environments.

Decision-making checklist: Choosing between SD-WAN and MPLS

Selecting the right networking solution for your organization requires carefully evaluating your unique needs, priorities, and constraints. Use the following checklist to guide your decision-making process and determine whether SD-WAN, MPLS or a hybrid approach is the best fit for your enterprise:

1. Assess your network requirements

Do you have latency-sensitive applications, such as VoIP, video conferencing, or financial transactions, demanding guaranteed Quality of Service (QoS)?

• If yes, MPLS or a hybrid approach may be necessary.

Are your users distributed across multiple remote locations or regions with varying connectivity needs?

• If yes, SD-WAN offers better scalability and flexibility.

2. Evaluate your budget

What is your budget for networking infrastructure, including installation, maintenance, and operational costs?

• MPLS typically requires higher initial and ongoing investments due to physical circuits and hardware.
• SD-WAN offers a cost-effective alternative by leveraging existing broadband or internet connections.

3. Consider Scalability

Is your organization rapidly expanding or adopting a multi-cloud strategy?

• SD-WAN provides seamless scalability for growing networks and dynamic environments.
• MPLS may need to be more adaptable due to its reliance on fixed circuits.

4. Analyze Security Needs

Do you require private, highly secure connections for sensitive data?

• MPLS offers inherent security through private circuits but may need cloud integration for modern environments.
• For comprehensive protection, SD-WAN requires additional security layers, such as Secure Access Service Edge (SASE).

5. Examine Application Performance

Are your applications cloud-native, such as SaaS platforms or IaaS solutions?

• SD-WAN is optimized for cloud connectivity, enabling direct and efficient access to cloud applications.
• MPLS is more suitable for legacy on-premise applications that rely on data center backhauling.

6. Assess Management and Operational Complexity

Do you need centralized, simplified network management?

• SD-WAN provides centralized control and automation for effortless network monitoring and troubleshooting.
• MPLS requires more hands-on management, often needing on-premise technical support.

7. Plan for Future-Proofing

Is your organization prioritizing digital transformation, including support for hybrid work and zero-trust security models?

• SD-WAN, combined with SASE, aligns with cloud-first and modern security trends.
• MPLS may need help to keep pace with the agility required for these transitions.

8. Evaluate Hybrid Options

Would a combination of SD-WAN and MPLS better meet your needs?

• Use MPLS for critical real-time applications and SD-WAN for cost-effective handling of general traffic.

Alternatives to MPLS and SD-WAN

While MPLS has been a reliable transport method for enterprise networks, advancements in networking technology offer alternative solutions better suited for modern, cloud-first environments. These alternatives provide flexibility, scalability, and cost-efficiency for organizations looking to evolve beyond traditional MPLS setups.

VPN (Virtual Private Network)

VPNs provide a secure, encrypted tunnel for data transmission over the public internet. While they lack the QoS guarantees of MPLS, VPNs are a cost-effective solution for connecting remote users and smaller branch offices to corporate networks. VPNs work well for businesses prioritizing affordability and basic security over high-performance requirements.

5G networks

The rise of 5G technology offers a compelling alternative for enterprise networks. With ultra-low latency, high bandwidth, and widespread availability, 5G networks can support critical business applications that were previously reliant on MPLS. They are particularly effective for edge computing environments and mobile-first businesses.

Internet-based networking

Many organizations are turning to direct internet access (DIA) and broadband connections as replacements for MPLS. These options allow businesses to leverage high-speed, cost-effective public internet connections while pairing them with cloud-native security solutions like SASE to maintain performance and security.

Private LTE and CBRS

Private LTE and Citizen Broadband Radio Service (CBRS) networks are emerging as viable alternatives for enterprises requiring private, secure connectivity without the constraints of traditional MPLS. These technologies enable organizations to create their wireless networks, which are ideal for environments with unique coverage requirements, such as manufacturing facilities or campuses.

A summary of SD-WAN vs. MPLS

SD-WAN systems provide your organization with the trusted capabilities of managing multi-cloud environments with greater scalability and reliability. The modern data transport mode presents a more affordable and flexible solution that leverages MPLS, wireless, broadband, and virtual private networks (VPNs) to maintain high speed across remote environments. 

On the other hand, MPLS boosts network efficiency through predetermined routes, and it is best suited for enterprise environments that continue to rely on data centers. In both instances, you can significantly improve observability by applying a trusted REST API that exposes all functionalities within your networks without tedious wrapper codes. 

REST APIs with multiple integrations offer added convenience for managing data across multi-cloud platforms, preferably with automated webhooks that send real-time information between applications. 

As the WAN continues to evolve, enterprise leaders must have the freedom and accessibility to navigate between private and public Internet infrastructures. Comparing SD-WAN vs. MPLS, you can successfully align your company’s specific requirements with the necessary product sets to achieve the best outcomes.  

SD-WAN in the future of network communications

Through SD-WAN, your organization maintains optimized software functions regardless of location, elevating your overall user experience while reducing IT expenses. Combining SD-WAN networks with intelligent monitoring can help you streamline and optimize business continuity in work-from-home and hybrid settings. 

Another major factor in SD-WAN adoption is its independence from tedious MPLS circuitry migrations. If your enterprise network currently runs on the public internet, you can choose to retain your service provider by moving or reconfiguring the virtualized elements of your WAN.  

Next, SD-WAN capabilities support the core functions of Secure Access Service Edge (SASE) structures, a term Gartner coined in 2019. Advanced SASE setups provide your enterprise with a safe, reliable, unified cloud-based network. 

SASE also helps your organization transport security and access between multiple user endpoints, such as branch offices and mobile applications. The structure operates through a combination of SD-WAN functionalities and cloud-based security solutions. Ultimately, SD-WAN proves integral in supporting your company through future-proofing communications for a cloud-first landscape.

Take your network management to the next level with LogicMonitor. Discover how our platform integrates seamlessly with SD-WAN to provide unparalleled visibility, performance monitoring, and scalability for your enterprise.