Many service providers have touted software-defined wide area networking (SD-WAN) as the best network management solution for the past few years. And considering the benefits of SD-WAN compared to high-cost multiprotocol label switching (MPLS) networks – including improved network management, improved security, and more – this solution clearly lives up to the hype.
One of the most commonly asked questions we hear from clients is whether SD-WAN solutions can create cost savings for their business. In this blog, we’ll compare MPLS and SD-WAN cost-saving capabilities to help you better understand how this solution might fit into your budget.
MPLS and SD-WAN Cost Differences
You’re probably aware of the many benefits of SD-WAN. After all, the SD-WAN market is expected to double between now and 2027.1 But while many business leaders agree they pay less on networking costs after adopting SD-WAN, breaking down the reasons for these cost savings can be tricky.
Here are a few ways SD-WAN helps organizations of all sizes save money:
Connections
It’s no secret that MPLS is expensive, largely due to its inability to scale bandwidth up and down. With MPLS, companies have to pay for enough bandwidth to cover worst-case scenarios and eat the cost the rest of the time.
Switching to an SD-WAN solution can help businesses reduce costs by 50% or more.2 SD-WAN uses several types of connections – including broadband, cellular, Ethernet, and MPLS – to route traffic. This allows businesses to leverage different options depending on bandwidth needs. For example, IT teams can route low-priority tasks like web browsing over more cost-effective options like broadband and use expensive MPLS connections for critical applications like video conferencing.
Scalability
Installing an MPLS network requires a hefty upfront hardware investment, especially for businesses with multiple branches or offices. Deploying new connections requires adding to the existing infrastructure – and because this can be costly and time-consuming, MPLS solutions can stunt a company’s ability to scale.
SD-WAN solutions virtualize a network’s endpoints, so adding new users or branches to the network is quick and easy. Businesses can scale more effectively since specialized hardware isn’t required and deploying new connections doesn’t impact infrastructure configuration.
Security
Service providers don’t generally include cyber security tools like firewalls or VPNs in their MPLS solutions. With the global average cost of data breaches reaching $4.45 million this year,3 implementing better network protections is a primary concern for many business leaders.
SD-WAN provides end-to-end encryption across the entire network. IT teams can leverage this built-in encryption to create a multi-layered security strategy that includes firewalls, URL filtering, and more. Additionally, SD-WAN solutions allow segmentation across the network to limit access to business-critical applications, ensuring sensitive data stays safe during a breach.
Reliability
Although MPLS provides a fixed level of bandwidth for business networks, there’s a limit on how much capacity MPLS connections can provision. MPLS is bandwidth-constrained, so these networks struggle to support traffic outside the network edge (i.e., cloud-based resources). This can result in unplanned downtime, which costs businesses around $5,600 per minute on average.4
Switching to SD-WAN allows businesses to diversify their WAN connections and route traffic over the most efficient link. Traffic will route over another option if one type of connection becomes unavailable, virtually eliminating network outages.
Performance
With more businesses relying on cloud-based applications and services, MPLS solutions can’t keep up. Sending high-bandwidth traffic over MPLS connections often results in high latency, laggy performance, and diminished productivity.
Because SD-WAN combines multiple types of connections, IT teams can add capacity as needed. Users can access critical business applications over the highest-performing connection, reducing the packet loss and latency issues associated with MPLS and improving employee productivity.
C4 Communications: Your Partner for Best-Fit Connectivity
Whether MPLS or SD-WAN is right for your business ultimately depends on your specific needs and goals. However, SD-WAN’s cost-saving benefits make this a solid option for those looking to streamline network management, improve performance, and bolster security – especially if you’re still using an expensive MPLS solution.
Struggling to find a right-fit SD-WAN solution for your business? At C4 Communications, our solution consultants can provide the expert guidance you need to choose a network management solution that gives you peace of mind. Whether you have one location or one hundred, we’ll work with you to find a solution that meets your unique needs at the best possible price.
Rely on C4 to deliver:
- Unbiased recommendations based on our years of marketplace expertise.
- A consultative approach to understanding and solving your cloud and connectivity challenges.
- Caring support from our ready and responsive team.
Ready for a better, more secure network management solution? Book a consult with C4 today for trusted guidance to help you find a cost-saving SD-WAN solution for your business.
Sources:
- https://www.sdxcentral.com/articles/analysis/sd-wan-by-the-numbers-market-size-growth-adoption/2023/08
- https://blog.telegeography.com/wan-mythbusters-is-it-true-that-sd-wan-can-cut-your-network-spend-in-half
- https://www.ibm.com/reports/data-breach
- https://www.forbes.com/sites/forbestechcouncil/2022/08/26/how-to-guard-against-the-cost-of-unplanned-downtime-and-network-outages