As businesses evaluate their wide-area network (WAN) strategies, the choice between traditional MPLS and modern SD-WAN has become increasingly nuanced. This guide breaks down both technologies to help you make an informed decision.
Understanding MPLS
Multiprotocol Label Switching (MPLS) has been the enterprise WAN standard for over two decades. It creates private, dedicated pathways through carrier networks using label-based routing rather than IP addresses.
MPLS advantages:
- Guaranteed Quality of Service (QoS) for voice and video
- Predictable, consistent performance
- Built-in security through network isolation
- Carrier-managed service with SLAs
- Proven technology with decades of reliability
MPLS limitations:
- Higher cost per Mbps
- Long provisioning times (60-90 days)
- Bandwidth upgrades require carrier involvement
- Not optimized for cloud traffic (backhauling)
- Limited flexibility for remote workers
Understanding SD-WAN
Software-Defined Wide Area Networking (SD-WAN) uses software to intelligently route traffic across multiple connection types, including MPLS, broadband, LTE, and direct internet access.
SD-WAN advantages:
- Lower cost by leveraging broadband connections
- Application-aware routing optimizes performance
- Direct cloud access without backhauling
- Faster deployment (days vs months)
- Centralized management and visibility
- Built-in redundancy across multiple links
- Easy bandwidth scaling
SD-WAN considerations:
- Performance depends on underlying transport quality
- Security requires additional configuration or integration
- Management complexity without proper tooling
- May still need quality underlay circuits for best results
Performance Comparison
| Metric | MPLS | SD-WAN |
|---|---|---|
| Latency | Consistent, low | Variable, optimized by software |
| Jitter | Minimal | Managed through packet replication |
| Packet Loss | Near zero | Compensated through FEC |
| Failover Time | Seconds to minutes | Sub-second |
| Cloud Performance | Requires backhauling | Direct breakout |
Cost Comparison
SD-WAN typically reduces WAN costs by 30-50% compared to MPLS-only networks by:
- Supplementing or replacing expensive MPLS with broadband
- Eliminating cloud traffic backhauling
- Reducing hardware costs with virtual appliances
- Simplifying management overhead
However, for locations requiring guaranteed performance, MPLS or dedicated internet as the SD-WAN underlay provides the best of both worlds.
The Hybrid Approach
Most enterprises are adopting a hybrid strategy:
- MPLS or dedicated internet for headquarters and data centers
- SD-WAN overlay for intelligent traffic routing
- Broadband or LTE for branch offices and remote sites
- Direct internet breakout for cloud and SaaS applications
This approach delivers MPLS-level reliability where needed while gaining SD-WAN flexibility and cost savings.
Migration Path
Transitioning from MPLS to SD-WAN does not have to be disruptive:
- Deploy SD-WAN alongside existing MPLS
- Use MPLS as primary transport initially
- Add broadband connections at each site
- Gradually shift traffic as confidence builds
- Right-size or eliminate MPLS circuits over time
Which is Right for You?
Choose MPLS if:
- You need guaranteed QoS for real-time applications
- Compliance requires carrier-managed security
- You have limited IT resources for management
- Locations have poor broadband options
Choose SD-WAN if:
- Cost reduction is a priority
- You use significant cloud/SaaS applications
- You need flexibility for rapid changes
- Supporting remote workers is important
Choose Hybrid if:
- You want the best of both technologies
- Different locations have different needs
- You are planning a gradual migration
Schedule a free network assessment to determine the right approach for your business.
