Whether you’re running a small business or managing a global enterprise, your network needs to support everything from seamless communication to efficient access to cloud-based tools. When evaluating networking solutions, many organizations find themselves torn between Software-Defined Wide Area Networking (SD-WAN) and Multiprotocol Label Switching (MPLS).
However, the decision isn’t always straightforward. MPLS has long been a trusted solution for its reliability and consistency, while SD-WAN offers flexibility and cost savings that align with modern, cloud-centric environments. If you’re looking to find the right networking option for your organization, understanding these technologies is essential.
Read on to explore the differences between SD-WAN and MPLS so you can find the best fit for your business.
What Is MPLS?
Multiprotocol Label Switching (MPLS) is a networking technology that uses a private, dedicated infrastructure to route data packets. It operates by assigning labels to data packets, ensuring they take the most direct route across the network.
The key features of MPLS include:
- Reliable Performance: MPLS offers low latency and high reliability, making it ideal for applications like VoIP and video conferencing.
- Dedicated Bandwidth: By providing a private network, MPLS ensures consistent performance and bandwidth availability.
- Enhanced Security: Data travels on a private network, reducing exposure to external threats.
While MPLS has been a staple for businesses requiring reliable connectivity, it typically comes with higher costs and less flexibility compared to newer solutions like SD-WAN.
What Is SD-WAN?
Software-Defined Wide Area Networking (SD-WAN) is a modern approach to networking that uses software to manage and optimize data traffic across multiple connection types, including broadband, LTE, and MPLS.
Some essential features of SD-WAN include:
- Cost-Effectiveness: SD-WAN leverages existing internet connections, reducing dependency on expensive dedicated circuits.
- Flexibility: It supports multiple transport types, allowing businesses to mix and match connections based on cost and performance needs.
- Centralized Management: SD-WAN provides a unified platform for managing network traffic, making it easier to configure and monitor.
- Enhanced Performance: Traffic is dynamically routed based on real-time conditions, ensuring optimal performance for critical applications.
SD-WAN’s flexibility and ability to integrate with cloud-based apps make it a great choice for businesses looking for modern, adaptable networking solutions.
SD-WAN vs. MPLS: Compared
Still not sure whether SD-WAN or MPLS is better for your business? Each technology has its strengths, depending on your specific needs. Here’s how they compare across critical factors:
Cost
- MPLS: MPLS is a premium solution that comes with a higher price tag. It requires dedicated circuits, which are costly to set up and maintain. Additionally, expanding an MPLS network as your business grows can incur significant infrastructure expenses. While the reliability of MPLS justifies the cost for some organizations, it’s often prohibitive for businesses seeking cost-effective solutions.
- SD-WAN: SD-WAN leverages existing internet connections like broadband, LTE, or fiber to create a more affordable alternative. Since it doesn’t rely on dedicated circuits, SD-WAN reduces both initial setup costs and ongoing expenses.
Flexibility
- MPLS: MPLS networks are inherently rigid, as they rely on a private infrastructure built by service providers. This means scaling an MPLS network or adapting it to new business needs can be time-consuming and expensive. Additionally, MPLS doesn’t easily accommodate diverse connection types or integrate seamlessly with cloud-based applications.
- SD-WAN: SD-WAN is built for flexibility. It can route traffic across multiple connection types, including broadband, LTE, and even MPLS, if needed. This ability to mix and match transport methods allows businesses to tailor their networks to their specific requirements. Moreover, SD-WAN integrates seamlessly with cloud applications, making it ideal for modern, dynamic IT environments.
Performance
- MPLS: MPLS excels in providing consistent, reliable performance. Its private network ensures low latency and minimal packet loss, making it well-suited for applications that demand real-time data transmission, such as VoIP and video conferencing. However, MPLS may struggle to deliver the same performance when accessing cloud-based services, as it wasn’t designed with cloud traffic in mind.
- SD-WAN: SD-WAN dynamically routes traffic based on real-time network conditions, ensuring critical applications always receive the bandwidth they need. It prioritizes performance for time-sensitive applications while optimizing less critical traffic. While SD-WAN’s performance depends on the quality of the underlying internet connections, its intelligent routing capabilities often outperform MPLS in cloud-centric environments.
Security
- MPLS: MPLS offers a natural layer of security due to its private network structure. Data traveling across an MPLS network is isolated from public internet traffic, reducing exposure to external threats. However, MPLS lacks modern security features such as encryption or integration with advanced security frameworks like SASE (Secure Access Service Edge).
- SD-WAN: SD-WAN provides robust security features to protect data traveling over public networks. It employs end-to-end encryption to safeguard data and integrates seamlessly with security frameworks like SASE. Many SD-WAN solutions also include built-in firewalls and threat detection capabilities, making them a comprehensive choice for businesses that prioritize cybersecurity.
Implementation and Management
- MPLS: Deploying MPLS requires significant involvement from the service provider, which can result in longer lead times and complex setup processes. Once implemented, ongoing management often relies on the provider, limiting the IT team’s ability to make changes quickly. This dependence can slow down responses to changing business needs.
- SD-WAN: SD-WAN is designed with ease of deployment and centralized management in mind. It can be implemented quickly, often over existing infrastructure, without the need for extensive provider involvement. A centralized dashboard allows IT teams to monitor, configure, and optimize the network in real-time, giving businesses greater control and agility.
When Should Businesses Choose MPLS?
Despite higher costs and less flexibility, MPLS remains a strong choice for businesses with specialized requirements. You might opt for MPLS when:
- Consistency is critical: Applications requiring stable performance, such as VoIP or video conferencing, benefit from MPLS’s low latency.
- Security is paramount: Organizations that handle sensitive data may prefer MPLS for its private infrastructure.
Since MPLS offers a private network structure, it’s an excellent choice for organizations that need to prioritize reliable performance and security.
When Should Businesses Choose SD-WAN?
SD-WAN is quickly becoming a must-have solution for businesses looking for a modern, flexible approach to networking. A 2023 survey found that 51% of enterprise businesses use SD-WAN at all or most of their sites.1 It’s a better choice when:
- Cost efficiency matters: SD-WAN reduces networking costs by using broadband and other affordable connections.
- Scalability is needed: Growing businesses can easily expand their SD-WAN networks without high infrastructure costs.
- Dynamic performance is required: SD-WAN optimizes traffic routing to ensure high performance for critical applications.
- Cloud integration is key: SD-WAN works seamlessly with cloud applications, supporting hybrid and remote work environments.
Ultimately, SD-WAN offers a cost-effective alternative for businesses looking to scale their networks or integrate seamlessly with cloud-based tools.
Hybrid Approach: Combining SD-WAN and MPLS
For some businesses, combining SD-WAN and MPLS provides the best of both worlds. Nearly 34% of IT professionals say hybrid connectivity is the most important feature in an SD-WAN solution,2 which enables businesses to send traffic over multiple network connections. A hybrid approach can:
- Use MPLS for mission-critical applications that demand reliability.
- Leverage SD-WAN for less critical traffic, reducing overall costs and improving scalability.
This combination allows businesses to maintain the reliability of MPLS while enjoying the flexibility and cost savings of SD-WAN.
Partner With Netlink Voice for Best-Fit Networking Solutions
Choosing between SD-WAN and MPLS depends on your business’s specific needs, from budget constraints to performance priorities. Netlink Voice can help you navigate these options and design a networking solution tailored to your goals.
Whether you’re looking to modernize your network with SD-WAN or integrate MPLS into your existing setup, we’re here to support you every step of the way with customized private WAN services. Plus, you can rest easy knowing your network is monitored around the clock by our experienced professionals in our network operations center (NOC).
Contact us today to learn more about how our networking solutions can strengthen your business.
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