{"id":17565,"date":"2024-06-27T15:08:11","date_gmt":"2024-06-27T13:08:11","guid":{"rendered":"https:\/\/www.savecall.de\/sd-wan-vs-mpls-pros-and-cons\/"},"modified":"2026-07-08T09:22:23","modified_gmt":"2026-07-08T07:22:23","slug":"mpls-vs-sd-wan","status":"publish","type":"post","link":"https:\/\/www.savecall.de\/en\/mpls-vs-sd-wan\/","title":{"rendered":"SD-WAN vs. MPLS: pros and cons"},"content":{"rendered":"\n

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MPLS vs SD-WAN: The Direct Comparison for Businesses<\/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 vs. MPLS: A comparison of modern WAN technologies<\/h2>\n<\/div>\n<\/div>\n\n\n\n
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MPLS or SD-WAN: what counts<\/h3>\n\n\n\n
Focus on flexibility, performance and security<\/h4>\n\n\n\n
Companies are faced with the choice between MPLS<\/a> and SD-WAN<\/a> to cope with increasing cloud<\/a> and bandwidth requirements. While MPLS stands for stability and predictable performance, SD-WAN offers agility, lower costs and cloud integration.<\/p>\n\n\n\n
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In a nutshell:<\/strong><\/p>\n\n\n\n
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Flexible, cloud-based architecture with centralized management<\/li>\n\n\n\n
Cost-efficient use of internet connections<\/a> instead of expensive MPLS lines<\/li>\n\n\n\n
Zero-touch deployment for easy scaling and management<\/li>\n\n\n\n
Integrated security functions and SASE compatibility<\/li>\n\n\n\n
Transparent network monitoring and performance control<\/li>\n<\/ul>\n\n\n\n
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The solution:<\/strong> MPLS is expensive but offers guaranteed SLAs and stable performance. SD-WAN is 30 to 60 percent cheaper and cloud-ready. For most companies hybrid WAN is the pragmatic default: MPLS for critical applications, SD-WAN for the rest.<\/p>\n\n\n\n
What this article covers:<\/strong> the basics of MPLS and SD-WAN, their pros and cons, a direct comparison by cost, SLA, security, deployment and cloud fit, and the question of whether and when SD-WAN can replace MPLS or the two combine as a hybrid. The key question: is your network ready for the future, or is it time to switch?<\/p>\n\n\n\n
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Book a consultation<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n
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Table of contents<\/h3>\n\n\n\n
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MPLS basics<\/a><\/li>\n\n\n\n
SD-WAN basics<\/a><\/li>\n\n\n\n
MPLS: pros and cons<\/a><\/li>\n\n\n\n
SD-WAN: pros and cons<\/a><\/li>\n\n\n\n
MPLS vs. SD-WAN compared<\/a><\/li>\n\n\n\n
Can SD-WAN replace MPLS?<\/a><\/li>\n\n\n\n
Can SD-WAN and MPLS work together?<\/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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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.<\/p>\n\n\n\n
MPLS basics<\/a><\/h3>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
SD-WAN basics<\/a><\/h3>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
3. MPLS: pros and cons<\/h3>\n\n\n\n
Advantages of MPLS<\/h4>\n\n\n\n
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High performance:<\/strong> 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.<\/li>\n\n\n\n
Reliability:<\/strong> MPLS ensures reliable delivery of packets and maintains the quality of real-time protocols.<\/li>\n<\/ul>\n\n\n\n
Disadvantages of MPLS<\/h4>\n\n\n\n
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Time-consuming deployment:<\/strong> Configuring and setting up MPLS circuits is a slow process. Companies using MPLS have difficulty responding quickly to sudden increases in bandwidth requirements.<\/li>\n\n\n\n
Costs:<\/strong> With MPLS, the price per bandwidth is much higher than with a broadband Internet connection.<\/li>\n\n\n\n
Accessibility:<\/strong> MPLS is only intended for point-to-point connections, which means that cloud applications and SaaS are not directly accessible via MPLS.<\/li>\n<\/ul>\n\n\n\n
4. SD-WAN: pros and cons<\/h3>\n\n\n\n
Advantages of SD-WAN<\/h4>\n\n\n\n
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Performance:<\/strong> SD-WAN increases business agility and ensures application performance.<\/li>\n\n\n\n
Cost:<\/strong> 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.<\/li>\n\n\n\n
No geographical restrictions:<\/strong> SD-WAN removes geographical boundaries and allows connections to be added and removed at any location depending on business requirements.<\/li>\n\n\n\n
Visibility and control:<\/strong> SD-WAN enables more proactive control of the network, enabling organizations to mix and match connections based on content priorities.<\/li>\n\n\n\n
Operation:<\/strong> SD-WAN simplifies operation through zero-touch provisioning and cloud-based management.<\/li>\n<\/ul>\n\n\n\n
Disadvantages of SD-WAN<\/h4>\n\n\n\n
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Security:<\/strong> 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.<\/li>\n\n\n\n
Errors:<\/strong> Jitter and packet loss can occur with SD-WANs.<\/li>\n<\/ul>\n\n\n\n
5. MPLS vs. SD-WAN compared<\/h3>\n\n\n\n
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.<\/p>\n\n\n\n
Criterion<\/th> MPLS<\/th> SD-WAN<\/th><\/tr><\/thead>
Cost<\/strong><\/td> High, high price per megabit<\/td> 30 to 60 percent cheaper over internet lines<\/td><\/tr>
SLA<\/strong><\/td> Guaranteed SLAs, predictable performance<\/td> Depends on the underlay, no hard SLAs without add-ons<\/td><\/tr>
Security<\/strong><\/td> Logically separated from the internet, no built-in analysis<\/td> Must be added explicitly, SASE-capable<\/td><\/tr>
Deployment<\/strong><\/td> Slow, weeks to months per site<\/td> Fast, zero-touch deployment<\/td><\/tr>
Cloud fit<\/strong><\/td> Detour via central hub, no direct SaaS access<\/td> Direct local internet breakout to the cloud<\/td><\/tr>
Scaling<\/strong><\/td> Complex, tied to fixed circuit paths<\/td> Flexible, bandwidth expandable on demand<\/td><\/tr><\/tbody><\/table>
MPLS and SD-WAN side by side. In practice many companies combine both as hybrid WAN.<\/figcaption><\/figure>\n\n\n\n
Costs:<\/strong> 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.<\/p>\n\n\n\n
Reliability:<\/strong> 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.<\/p>\n\n\n\n
Security:<\/strong> 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.<\/p>\n\n\n\n
6. Can SD-WAN replace MPLS?<\/h3>\n\n\n\n
Although SD-WAN and MPLS have advantages and disadvantages in various respects, SD-WAN can offer similar performance and reliability to dedicated MPLS circuits.<\/p>\n\n\n\n
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<\/a> 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.<\/p>\n\n\n\n
7. Can SD-WAN and MPLS work together?<\/h3>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n<\/div>\n<\/div>\n\n\n
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How SAVECALL supports the WAN switch<\/h3>\n\n\n\n
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SAVECALL advises vendor-neutral on the choice between MPLS<\/a>, SD-WAN<\/a> or hybrid WAN. Based on more than 80 carrier partnerships we create a concrete TCO calculation, procure the right underlay<\/a> through the procurement pool at below-market conditions and manage the migration including SASE<\/a> integration for security end-to-end.<\/p>\n\n\n\n
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Conclusion: combining MPLS and SD-WAN the right way<\/strong><\/h3>\n\n\n\n<\/div>\n\n\n\n
MPLS and SD-WAN are not an either-or question. MPLS scores with guaranteed SLAs and stable quality, SD-WAN with cost, cloud fit and speed. For most companies hybrid WAN is the pragmatic path: critical applications over MPLS, the rest cheaply and flexibly over SD-WAN. Those who base the decision on cost, SLA needs and cloud share build a network that carries today and scales tomorrow.<\/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+
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Sources<\/h3>\n\n\n\n
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Gartner: Magic Quadrant for SD-WAN and WAN Edge Infrastructure<\/li>\n\n\n\n
MEF: SD-WAN Service Attributes and Services (MEF 70)<\/li>\n\n\n\n
SAVECALL: WAN solutions for companies<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n
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Frequently asked questions<\/h3>\n\n\n\n
What is the main difference between MPLS and SD-WAN?<\/strong>
MPLS (Multiprotocol Label Switching) is a carrier-operated Layer 2\/3 network technology with dedicated private lines, guaranteed SLAs and high voice quality, but at high cost and with long provisioning times. SD-WAN (Software-Defined Wide Area Network) is a software-based layer that intelligently bundles multiple cheaper internet connections such as fibre, DSL, LTE or 5G and automatically routes traffic over the best available link. MPLS is more expensive and less flexible, SD-WAN cheaper and cloud-ready. Most companies today are migrating from MPLS to SD-WAN or running both as a hybrid solution.<\/p> <\/div>
When is SD-WAN worth replacing MPLS?<\/strong>
SD-WAN is worth replacing MPLS when cloud applications such as Microsoft 365, AWS or Salesforce make up the majority of traffic, since SD-WAN routes cloud traffic directly through local internet breakouts instead of a central MPLS hub. Further indicators: MPLS contract is expiring and prices are significantly above market average, new sites need to be connected quickly, international sites exist in countries with poor MPLS coverage, or the internal IT team wants centralised network management without carrier dependency. SAVECALL calculates the concrete ROI of the switch over 5 years.<\/p> <\/div>
What does MPLS cost compared to SD-WAN?<\/strong>
MPLS typically costs 400 to 2,500 euros per site monthly for 10 to 100 Mbit\/s, depending on carrier and location. SD-WAN with comparable bandwidth over dual internet ranges from 250 to 600 euros per site monthly including SD-WAN licence. That represents savings of 30 to 60 percent. Extrapolated across 10 sites over 5 years, the difference amounts to 150,000 to 500,000 euros. For internationally distributed sites the differences are even larger. SAVECALL creates a concrete TCO calculation for your infrastructure.<\/p> <\/div>
What are the disadvantages of SD-WAN compared to MPLS?<\/strong>
SD-WAN has three main disadvantages compared to MPLS. First: public internet as underlay offers no guaranteed SLAs like MPLS, which matters for very latency-sensitive applications such as trading systems. Second: security must be explicitly implemented since traffic runs over the public internet, whereas MPLS is logically separated from it. Third: SD-WAN requires more initial design and expertise during implementation. These disadvantages can be fully addressed with hybrid SD-WAN (MPLS for critical applications, internet for the rest) and SASE for security.<\/p> <\/div>
What is hybrid WAN and when does it make sense?<\/strong>
Hybrid WAN combines MPLS and SD-WAN at the same sites: MPLS for latency- and quality-critical applications such as ERP or voice, cheaper internet lines with SD-WAN steering for cloud traffic and general browsing. SD-WAN automatically distributes traffic by application priority across the best available link. Hybrid WAN makes sense for companies with existing MPLS contracts with long remaining terms, regulated industries with strict SLA requirements, or sites in regions with unstable internet. Typical migration: hybrid first, then gradual MPLS replacement at contract renewal.<\/p> <\/div>
How long does migration from MPLS to SD-WAN take?<\/strong>
A typical MPLS-to-SD-WAN migration takes 4 to 9 months from contract signing to the last migrated site. Phase 1 covers SD-WAN design and underlay procurement (6 to 12 weeks), Phase 2 a pilot operation at 2 to 3 sites running parallel to the MPLS network (4 to 8 weeks) and Phase 3 the rollout of all sites with zero-touch deployment (typically 5 to 15 sites per week). The MPLS network stays active until full acceptance at each site. SAVECALL handles project management, carrier coordination for MPLS termination and SD-WAN rollout end-to-end.<\/p> <\/div> <\/div>\n\n\n
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\r\n $\"SAVECALL$ <\/div>\r\n
Security<\/p>\r\n <\/div>\r\n\r\n
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Mastering Shadow AI with SASE: Security and transparency for Gen-AI in the company<\/h3>\r\n
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Learn moreLearn more<\/h3>\r\n <\/div>\r\n <\/div>\r\n\r\n <\/a>\r\n <\/div>\r\n
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\r\n $\"Luftaufnahme$ <\/div>\r\n
Partner<\/p>\r\n <\/div>\r\n\r\n
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10 advantages of mobile device management<\/h3>\r\n
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Learn moreLearn more<\/h3>\r\n <\/div>\r\n <\/div>\r\n\r\n <\/a>\r\n <\/div>\r\n
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\r\n $\"Modern$ <\/div>\r\n
Internet<\/p>\r\n <\/div>\r\n\r\n
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Insights into the requirements of a modern workplace<\/h3>\r\n
\r\n
Learn moreLearn more<\/h3>\r\n <\/div>\r\n <\/div>\r\n\r\n <\/a>\r\n <\/div>\r\n <\/div>\r\n\r\n
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