MPLS or SD-WAN: which is the right choice for your business?

Multiprotocol label switching (MPLS) or software-defined wide area networking (SD-WAN)? This question gets asked all the time by IT managers.

It is no secret that software-defined wide area networking technology has quickly replaced older standards like MPLS. But that does not mean SD-WAN solutions are automatically going to be the right choice for your business, and it can be challenging to determine which of the two is the best fit.

Let us talk about how you can differentiate between SD-WAN and MPLS, exploring their security features, management and monitoring capabilities, and hybrid approaches, to help you make the best decision for your network connectivity needs.

Understanding SD-WAN and MPLS

Before we explore their differences, here is what each one does.

MPLS

A wide area network architecture that routes data packets over private, pre-defined paths. As a protocol implemented on networking hardware, it is typically used in high-performance telecommunications networks to direct data from one node to the next based on short path labels rather than long network addresses. This reduces the complexity of lookups in routing tables and speeds up traffic flow. MPLS is also used for traffic engineering and quality of service in IP networks.

SD-WAN

Uses software to route data packets via the best transport method, whether broadband internet, 4G, or MPLS. This is generally determined by bandwidth availability and policy-based routing, forming a virtual overlay atop a network's physical connectivity. One key feature is application-aware routing, which enhances performance and resilience through dynamic path selection based on the needs of critical applications.

Key differences

Both enable business connectivity over a wide area, but they differ in several significant ways.

Performance

MPLS networks provide a reliable, fixed level of bandwidth, but there is a limit on how much capacity an MPLS connection can provision at once. It handles traffic through dedicated paths, ensuring reliability for critical applications, which makes it an excellent choice for latency-sensitive applications that do not require internet connectivity. At the same time, trying to run cloud applications over MPLS can result in high latency and slow connections.

Unlike MPLS, SD-WAN combines multiple types of connections to add capacity as needed. This flexibility allows businesses to send critical applications like video calls and web conferencing over the highest-performing connection, which reduces packet loss and minimizes latency.

Cost

MPLS connections require upfront hardware investment and can be costly, especially for businesses with multiple branches. Routing traffic through label switched paths adds to the overall cost due to the need for specialized infrastructure.

SD-WAN does not require specialized hardware, so IT teams can add new connections at any time because the physical distance between endpoints does not matter. Businesses that switch typically reduce costs substantially, and because SD-WAN uses several types of connections, they can rely on more cost-effective links like mobile and broadband for low-priority tasks while saving more expensive connections for critical applications.

Network security

MPLS offers some security by running on separate infrastructure from the public internet, and routing traffic through dedicated paths can help protect sensitive data. At the same time, it lacks the built-in encryption of SD-WAN and does not typically feature integrated security. That puts the responsibility on the IT team to select, implement, and manage the right security solutions.

Secure SD-WAN solutions include encrypted end-to-end tunnels across the network. Businesses can build a multi-layered security strategy that combines this built-in encryption with firewalls, URL filtering, and more. SD-WAN also provides inherent security through encrypted VPN connections, simplifying compliance with regulations like HIPAA, and can be incorporated into more advanced architectures such as SASE. Secure web gateway and cloud access security broker features round out data protection and secure access to cloud services.

Management and monitoring

MPLS networks can be resource-intensive, and while they typically offer robust monitoring tools, those tools are not always centralized or easy to use. SD-WAN offers centralized management and easier monitoring, giving IT teams greater control and visibility. A single pane of glass manages the entire network, simplifying operations and reducing administrative overhead.

Choosing the right solution

MPLS is ideal for industries requiring guaranteed performance and reliability for specific point-to-point connections, such as finance, healthcare, and manufacturing. SD-WAN suits businesses seeking cost-effective, flexible, and scalable networking, and is particularly beneficial for companies with multiple branches or remote locations.

A hybrid approach leverages the strengths of both, providing a balance of performance, reliability, and cost-efficiency. Organizations with diverse networking needs can combine the benefits of MPLS with the flexibility and scalability of SD-WAN.

Find the right-fit connectivity with Momentum

MPLS circuits provide unmatched reliability with near-zero packet loss, and they do not require the same level of active management as most SD-WAN solutions. They also tend to offer more predictable traffic management and network performance.

That said, an SD-WAN deployment has many advantages over MPLS, including improved performance, lower costs, and better network security. It is also considerably more scalable than physical MPLS circuits. For most businesses, the fact that SD-WAN reduces costs and offers greater scalability and flexibility while still being able to connect to MPLS circuits will be the deciding factor.