{"id":17021,"date":"2023-03-09T12:37:10","date_gmt":"2023-03-09T11:37:10","guid":{"rendered":"https:\/\/www.savecall.de\/sd-wan-simply-explained\/"},"modified":"2026-07-08T07:59:18","modified_gmt":"2026-07-08T05:59:18","slug":"sd-wan-simply-explained","status":"publish","type":"post","link":"https:\/\/www.savecall.de\/en\/sd-wan-simply-explained\/","title":{"rendered":"SD-WAN – simply explained"},"content":{"rendered":"\n

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SD-WAN Explained: What Is SD-WAN and How Does It Work?<\/h1>\n<\/div>\n\n\n\n

Trusted Advisor for IT & Telecommunications Sourcing<\/h3>\n<\/div>\n\n\n\n
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SD-WAN: flexibility and efficiency for your company network<\/h2>\n<\/div>\n<\/div>\n\n\n\n
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How software-defined networks are shaping the future of connectivity<\/h3>\n\n\n\n
In a networked business world with globally distributed locations, traditional WAN structures<\/a> quickly reach their limits. SD-WAN<\/a> offers the solution here: an intelligent, software-based network architecture that reduces costs, improves performance and simplifies management, ideal for companies with high demands on flexibility and security.<\/p>\n\n\n\n
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In a nutshell:<\/strong><\/p>\n\n\n\n
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Cost efficiency:<\/strong> Use of low-cost Internet connections with consistent performance.<\/li>\n\n\n\n
High reliability:<\/strong> Automatic rerouting of data traffic in the event of line problems.<\/li>\n\n\n\n
Optimized application performance:<\/strong> Intelligent routing ensures stable performance.<\/li>\n\n\n\n
Easy scalability:<\/strong> New locations can be integrated quickly.<\/li>\n\n\n\n
Central management:<\/strong> Transparent management and control of all connections.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
The solution:<\/strong> SD-WAN bundles multiple lines into an intelligently steered network, reduces costs compared to traditional WAN models and can be managed centrally.<\/p>\n\n\n\n
What this article covers:<\/strong> what SD-WAN is, why companies adopt it, how it works technically, how it compares to MPLS and which advantages it offers. The key question: is your corporate network already as flexible as your business requirements?<\/p>\n\n\n\n
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Table of contents<\/h3>\n\n\n\n
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SD-WAN explained<\/a><\/li>\n\n\n\n
Why SD-WAN?<\/a><\/li>\n\n\n\n
How does SD-WAN work?<\/a><\/li>\n\n\n\n
SD-WAN vs. MPLS<\/a><\/li>\n\n\n\n
SD-WAN advantages<\/a><\/li>\n\n\n\n
Frequently asked questions<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n
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In a networked world, companies need to provide business-critical IT at multiple locations. Software-defined Wide Area Network, or SD-WAN for short, is an optimal solution for this. Flexibility and cost efficiency compared to conventional network infrastructure solutions make SD WAN attractive. How does it work and what advantages does it have over other network solutions?<\/p>\n\n\n\n
1. SD-WAN explained<\/h3>\n\n\n\n
SD-WAN is an automated overlay technology that uses encrypted, application-specific dynamic tunnels to provide the best user and application experience with the network infrastructure over which it runs.<\/p>\n\n\n\n
This technology enables companies to supplement or replace conventional WAN traffic services such as Multiprotocol Label Switching (MPLS<\/a>, see MPLS vs. SD-WAN<\/a>). It often uses lower-cost Internet access services to cost-effectively extend WAN connectivity with Quality of Service (QoS) to small sites. SD-WAN also allows organizations to decouple the user and application experience from the technology and provider of last mile network connectivity. This creates the impression of a unified network, regardless of the technologies used.<\/p>\n\n\n\n
2. Why SD-WAN?<\/h3>\n\n\n\n
In the past, companies had to build their own private network or rely on traditional WAN services from providers. These solutions were not always flexible enough to adapt to changing requirements, such as the introduction of a hybrid cloud<\/a>. These customer networks are more difficult to manage at scale and slower to deploy. Older solutions also offer less visibility and no customized application-level traffic handling.<\/p>\n\n\n\n
But it’s not just the problems and shortcomings of traditional WAN models that have driven the adoption of SD-WAN. It is also the frustration with the procurement process in telecoms that has driven the adoption of SD-WAN. Customers want to separate the purchase of connectivity from the provision of networks. SD-WAN makes this possible by freeing them from the telco buying process and giving them more flexibility.<\/p>\n\n\n\n
3. How does SD-WAN work?<\/h3>\n\n\n\n
Essentially, SD-WAN separates the control layer from the data layer. The SD-WAN controller, which houses the control plane, acts as the central brain of the solution. It provides the instructions and rules that edge devices need to forward packets effectively.<\/p>\n\n\n\n
The controller also collects real-time feedback from the SD-WAN appliances about the traffic coming from the connected LANs and the performance of the connected lines. This allows the controller to direct traffic in real time to shape the applications to achieve better performance results. The data plane resides in the SD-WAN edge appliances located at each customer site. These appliances are connected to the customer’s LANs and network access lines. While the control plane is the brain, so to speak, the data plane executes the actions specified by the controller.<\/p>\n\n\n\n
This architecture enables faster, more informed and more effective data transfer, resulting in a better and more consistent overall experience for the end user.<\/p>\n\n\n\n
4. SD-WAN vs. MPLS<\/h3>\n\n\n\n
Although SD-WAN and MPLS are often seen as alternatives to each other, they are not mutually exclusive. There are some important differences between the two.<\/p>\n\n\n\n
Criterion<\/th> SD-WAN<\/th> MPLS<\/th><\/tr><\/thead>
Architecture<\/strong><\/td> Virtual, software-based overlay, independent of the transport medium<\/td> Pre-installed shared-services private network architecture from the carrier<\/td><\/tr>
Transport medium<\/strong><\/td> Any IP access can be combined (internet, fibre, LTE\/5G, even MPLS)<\/td> Dedicated carrier network, limited access technologies<\/td><\/tr>
Cost<\/strong><\/td> Lower, thanks to low-cost internet connections<\/td> Higher, due to dedicated lines<\/td><\/tr>
Quality of Service<\/strong><\/td> Application-aware routing, selects the best available connection<\/td> Guaranteed bandwidth and quality for defined traffic<\/td><\/tr>
Resilience<\/strong><\/td> Automatic rerouting across multiple active lines<\/td> Depends on separately booked redundancy<\/td><\/tr>
Site connectivity<\/strong><\/td> Mobile-only, pop-up or remote sites integrate easily<\/td> Tied to the availability of carrier infrastructure<\/td><\/tr>
Management<\/strong><\/td> Central control and visibility through one portal<\/td> Control largely with the carrier<\/td><\/tr><\/tbody><\/table>
SD-WAN and MPLS side by side. In practice, the two can be combined.<\/figcaption><\/figure>\n\n\n\n
MPLS WAN solutions from carriers are operated via a pre-installed shared services private network architecture. SD-WAN, on the other hand, is a virtual, software-based solution that is independent of the underlying transport architecture. For this reason, it is often associated with the Internet, the most favorable transmission medium. This is an important difference, because with a traditional MPLS WAN you are limited by the access technologies you can use. With SD-WAN, on the other hand, you can mix and match IP access solutions from different providers, including MPLS, with SD-WAN technology bringing them together into a manageable network.<\/p>\n\n\n\n
For example, SD-WAN can enable a customized level of resilience and bandwidth, resulting in a tailored, cost-effective solution. This also means that SD-WAN can include sites with mobile broadband access only if required. For example, pop-up sites or remote sites without staff can also be included.<\/p>\n\n\n\n
As mentioned above, SD-WAN enables multiple transport options, including MPLS. MPLS is considered the best transport network solution because it can guarantee bandwidth and quality for a given amount of traffic. SD-WAN, on the other hand, can shape the traffic and select the best performing connection to meet the quality of service parameters. However, it cannot make the Internet faster. This is where MPLS comes into play. A high-performance, high-speed MPLS connection to critical locations can ensure that traffic makes short, reliable hops from source to destination via a manageable number of peering points.<\/p>\n\n\n\n
5. SD-WAN advantages<\/h3>\n\n\n\n
Now that you know how SD-WAN works and why you should use it, here are some other benefits of an SD-WAN solution:<\/p>\n\n\n\n
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Cost-effective network:<\/strong> SD-WAN gives organizations the flexibility to use a variety of transport options for resiliency and scale bandwidth as needed based on location.<\/li>\n\n\n\n
Any location can be connected:<\/strong> Organizations can use any provider to cost-effectively connect any desired location to the network.<\/li>\n\n\n\n
Increased site uptime:<\/strong> If there is more than one access line at a site, SD-WAN automatically prioritizes and reroutes applications when network issues are detected.<\/li>\n\n\n\n
WAN optimization:<\/strong> Application-aware routing improves performance, and targeted forward error correction eliminates traditional packet loss degradation.<\/li>\n\n\n\n
Network security over the public Internet:<\/strong> Encrypted tunnels enable secure use of the low-cost public Internet transport.<\/li>\n\n\n\n
Short lead times for new sites:<\/strong> A pre-configured SD-WAN appliance can use any internet connection to bring a site online quickly.<\/li>\n\n\n\n
Increased Quality of Experience:<\/strong> Applications get their own performance requirements, and automated error correction and prioritization deliver optimal experience.<\/li>\n\n\n\n
Centralized control and visibility:<\/strong> The centralized control plane enables end-to-end performance management via a customer portal.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n
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How SAVECALL supports your SD-WAN<\/h3>\n\n\n\n
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SAVECALL advises vendor-neutral on the selection, design and procurement of your SD-WAN solution. Based on more than 80 carrier partnerships, we compare providers such as Cisco, Fortinet, Cato Networks or VMware, procure the right underlay and support the implementation end-to-end. This lets you decouple the purchase of connectivity from network provisioning and keep full flexibility.<\/p>\n\n\n\n
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Conclusion: SD-WAN as a flexible network foundation<\/strong><\/h3>\n\n\n\n
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SD-WAN separates network control from the line, making the corporate network flexible, resilient and centrally manageable. It does not necessarily replace MPLS but combines the strengths of both worlds into a tailored, cost-effective solution. Anyone with multiple sites and growing cloud usage gains noticeable speed and control with SD-WAN.<\/p>\n\n\n\n
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Book a consultation<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n
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$\"Frank$ <\/figure>\n<\/div>\n\n\n\n
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Written by<\/p>\n\n\n\n
Frank Frommknecht<\/h3>\n\n\n\n
Key Account Consultant, SAVECALL<\/strong><\/p>\n\n\n\n
Has supported companies for over 20 years in selecting and optimizing their connectivity solutions. His focus: making complex telecommunications understandable from the customer’s perspective and finding the right solution strategically.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n
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Why<\/h2>\n\n\n\n
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Telecom & IT sourcing. Worldwide. Carrier-independent.<\/h3>\n\n\n\n
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Selection & operation of worldwide connectivity & cloud infrastructure. Without vendor risk & unnecessary costs.<\/p>\n\n\n\n
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80+ carriers worldwide<\/li>\n\n\n\n
One point of contact<\/li>\n\n\n\n
One SLA<\/li>\n\n\n\n
One portal: mySAVECALL<\/li>\n\n\n\n
Min. 20% savings<\/li>\n<\/ul>\n<\/div>\n\n\n\n
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Book a consultation<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n
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25+
years of experience<\/h2>\n<\/div>\n\n\n\n
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Sources<\/h3>\n\n\n\n
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Gartner: Magic Quadrant and definitions for SD-WAN and SASE<\/li>\n\n\n\n
MEF Forum: standards and terminology for SD-WAN services (MEF 70)<\/li>\n\n\n\n
SAVECALL: SD-WAN solutions for companies<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n
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Frequently asked questions<\/h2>\n<\/div>\n<\/div>\n\n\n\n
What is SD-WAN and what does the term mean?<\/strong>
SD-WAN stands for Software-Defined Wide Area Network. Instead of using expensive dedicated lines, SD-WAN bundles multiple cheaper internet connections such as fibre, DSL, LTE or 5G into an intelligent network. A central software decides in real time which line to use for which application: video conferencing gets the fastest line, email runs on the cheapest. Businesses gain more bandwidth at lower cost and can manage their network centrally from the cloud, without being tied to a single carrier.<\/p> <\/div>
How does SD-WAN work in practice?<\/strong>
At each business site, an SD-WAN appliance is installed that bundles all available internet connections. The appliance continuously measures latency, packet loss and bandwidth of all lines and automatically routes traffic accordingly. Microsoft Teams calls run over the lowest-latency connection, large file downloads over the broadband line, critical ERP data over the most reliable one. All appliances at all sites are configured and monitored centrally through a cloud console, without needing an on-site technician. If a line fails, SD-WAN switches to the next one within seconds automatically<\/p> <\/div>
What is the difference between SD-WAN and a VPN?<\/strong>
A VPN (Virtual Private Network) encrypts traffic between two points over the public internet, but offers no intelligent line steering, no application-aware routing and no central management. SD-WAN includes VPN encryption as a component but goes far beyond it: it bundles multiple lines, measures line quality in real time, automatically prioritises applications and scales to hundreds of sites through a central console. VPN is a point-to-point security solution, SD-WAN is a complete WAN architecture for businesses with multiple sites.<\/p> <\/div>
Which businesses are suited to SD-WAN?<\/strong>
SD-WAN is particularly suited to businesses with two or more sites using cloud applications such as Microsoft 365, SAP or Salesforce. Mid-sized companies with 5 to 500 sites benefit most, as SD-WAN enables central management without local IT resources. Companies wanting to move from expensive MPLS lines to cheaper internet connections, or those with international sites in countries with poor MPLS infrastructure such as China, are also typical SD-WAN customers. For single-site businesses without WAN requirements, SD-WAN is overdimensioned.<\/p> <\/div>
How much does SD-WAN cost per month and per site?<\/strong>
SD-WAN typically costs between 50 and 200 euros per site monthly for the software licence, plus underlay costs for the internet connections (100 to 600 euros depending on bandwidth and technology). A complete SD-WAN site with dual internet and managed service ranges from 250 to 600 euros monthly. That is 30 to 60 percent cheaper than comparable MPLS connections. Through the SAVECALL procurement pool, underlay and licence costs are further reduced by 15 to 35 percent. Concrete pricing for your specific setup in the initial conversation.<\/p> <\/div>
What do you technically need for SD-WAN?<\/strong>
For SD-WAN, each site needs an SD-WAN appliance (hardware box or virtual instance), at least one internet connection (two from different carriers recommended for resilience) and an SD-WAN service contract with a provider such as Cisco, Fortinet, Cato Networks or VMware. The central management console runs in the cloud without dedicated servers. In the managed SD-WAN model, a managed service provider supplies the appliance, sets everything up and monitors operations 24\/7. SAVECALL supports provider selection, underlay procurement across 80 carrier partners and implementation end-to-end.<\/p> <\/div> <\/div>\n\n\n
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