MPLS vs SD-WAN: The Direct Comparison for Businesses

With the growing demand for cloud-based applications and increasing bandwidth requirements, as well as branch office expansion, some companies and service providers are now starting to offer wide area network (WAN) services. MPLS and SD-WAN are the two main technologies for WAN services. This article compares MPLS and SD-WAN to give you an idea of which technology is best for you.

MPLS basics

MPLS (Multiprotocol Label Switching) is a protocol for efficient network traffic flow between multiple locations. MPLS works in a similar way to Ethernet switches and routers and is located between layers 2 and 3 of the network. MPLS uses labels with important information so that traffic can be forwarded to its destination without the need for in-depth packet analysis by routers. This enables fast forwarding of packets and fast routing within a network, avoiding the inefficiencies of traditional Internet routing.

In the MPLS network, the MPLS switch transmits the data by detaching its label and forwarding the packet to the next switch label in the sequence. The MPLS network provides customers with a method of prioritizing traffic and thus a sense of predictability of traffic on the network. This allows users to utilize a single network connection for multiple applications and provide powerful and reliable connectivity for critical application traffic.

SD-WAN basics

Data centers and enterprises are demanding more flexible, open and cloud-based WAN technologies instead of proprietary or specialized WAN technologies that often involve expensive, fixed lines or proprietary hardware. For this reason, SD-WAN (Software-Defined Wide Area Network) was developed and is widely used for WAN connections. SD-WAN removes geographical boundaries and enables communication between different network endpoints. It is therefore ideal for connecting branch offices to central corporate networks or between data centers that are separated by geographical distances.

With zero-touch provisioning, SD-WAN simplifies management and reduces recurring network costs. In the SD-WAN architecture, an organization can benefit from end-to-end encryption across the entire network, including the wireless WAN, the Internet and the private MPLS. All devices and endpoints are fully authenticated thanks to the scalable key exchange functionality and software-defined security of cloud services in the SD-WAN architecture.

3. MPLS: pros and cons

Advantages of MPLS

• High performance: MPLS defines the network paths in advance and only transports traffic over these paths. It also uses labeling to isolate packets and assign higher priority to important network traffic, eliminating the complexity of routing traffic and achieving higher performance.
• Reliability: MPLS ensures reliable delivery of packets and maintains the quality of real-time protocols.

Disadvantages of MPLS

• Time-consuming deployment: Configuring and setting up MPLS circuits is a slow process. Companies using MPLS have difficulty responding quickly to sudden increases in bandwidth requirements.
• Costs: With MPLS, the price per bandwidth is much higher than with a broadband Internet connection.
• Accessibility: MPLS is only intended for point-to-point connections, which means that cloud applications and SaaS are not directly accessible via MPLS.

4. SD-WAN: pros and cons

Advantages of SD-WAN

• Performance: SD-WAN increases business agility and ensures application performance.
• Cost: SD-WAN eliminates the need for expensive routing hardware and gives the freedom of choice without being tied to a specific provider, resulting in significant savings. In addition, low-cost services can be used to reduce the cost of WAN connectivity.
• No geographical restrictions: SD-WAN removes geographical boundaries and allows connections to be added and removed at any location depending on business requirements.
• Visibility and control: SD-WAN enables more proactive control of the network, enabling organizations to mix and match connections based on content priorities.
• Operation: SD-WAN simplifies operation through zero-touch provisioning and cloud-based management.

Disadvantages of SD-WAN

• Security: SD-WAN does not have on-site security features. SD-WAN connects every branch office to the Internet, leaving every location open to attack. A data breach at one location can affect the entire company.
• Errors: Jitter and packet loss can occur with SD-WANs.

5. MPLS vs. SD-WAN compared

After looking at the pros and cons of SD-WAN and MPLS, the differences may become clearer. The following table compares both technologies in the areas that matter.

Costs: Managing the cost of WAN connectivity is a challenge for global organizations. Traditional MPLS networks have proven to be very expensive, and the emerging SD-WAN alternative offers both price and performance benefits. Since MPLS networks carry bandwidth-intensive multimedia content such as video and AR/VR, the high cost per megabit required for MPLS is barely sustainable. In contrast, SD-WAN offers optimized multi-point connectivity through distributed, private exchange and control points for data traffic, effectively reducing costs.

Reliability: The reliability of data traffic is a key concern for companies. SD-WAN typically provides a secure and simple enterprise-class cloud-enabled WAN connection with open and software-based technology. MPLS technology, on the other hand, provides reliable, high-performance connectivity over dedicated network lines and can effectively prevent packet loss. The reliability of both technologies is particularly important to ensure the quality of real-time applications such as VoIP telephony, video conferencing or remote desktops.

Security: MPLS does not offer built-in security features or any type of data analysis. MPLS connectivity requires traffic to be scanned for malware or other vulnerabilities, which requires the use of network firewalls and additional security features at the endpoints of the connection. To be fair, many SD-WAN solutions suffer from the same problem. However, some SD-WAN solutions provide built-in security by unifying secure connections.

6. Can SD-WAN replace MPLS?

Although SD-WAN and MPLS have advantages and disadvantages in various respects, SD-WAN can offer similar performance and reliability to dedicated MPLS circuits.

With SD-WAN, organizations can save on network investments by using relatively inexpensive network connections for most traffic. SD-WAN also improves organizations’ WAN flexibility by eliminating the limitations of MPLS circuits. SD-WAN supports bandwidth expansion as needed by the organization, without the delays associated with MPLS configuration. It optimizes routing so that traffic can be efficiently routed to its destination and is not limited to predefined MPLS circuit paths. And SD-WAN traffic can be routed anywhere, regardless of the geographic restrictions placed on the MPLS line. For this reason, SD-WAN can replace MPLS to a certain extent.

7. Can SD-WAN and MPLS work together?

SD-WAN and MPLS have complementary advantages. The two technologies can work together to remove some of their previous limitations. SD-WAN is an overlay technology defined by software, and MPLS sits underneath to provide transport services.

You don’t have to choose between SD-WAN and MPLS. Rather, you can use both together to create a flexible network architecture to support your current and future business.