What is SD‑WAN? Software-defined wide area networking explained

10 min readReviewed September 24, 2026
The short answer

SD‑WAN (software-defined wide area network) is a way of running a multi-location business network through software instead of fixed hardware routes. It combines broadband, 5G, LTE, satellite, and MPLS links, then sends each application over the path that best fits its needs.

A central controller sets the rules and every site follows them. IT gets one view of the whole network instead of a router-by-router puzzle. The result is faster cloud applications, fewer outages, and a network that grows as fast as the business opens new locations.

Momentum is a managed service provider that delivers Juniper Networks, Cisco Meraki, Arista Networks, and Cato Networks SD‑WAN as Network as a Service, with design, deployment, and ongoing management included.

What created the need for SD‑WAN?

SD‑WAN exists because business applications moved to the cloud while traditional WANs kept sending traffic through a central data center. That detour slows cloud apps, congests the hub, and makes every new site expensive to connect.

The traditional WAN was designed around one assumption: every application lives in a central data center. Branch offices connected to headquarters over private MPLS circuits, and security sat at that single hub.

That assumption no longer holds. Email runs in Microsoft 365. Calls run in Microsoft Teams. Customer records live in Salesforce, and workloads run in AWS and Azure. Traffic that used to stay inside the corporate network now heads straight for the internet.

Then
Branch 1
Branch 2
Branch 3
HQ data center
Every app, and all security, sits at one hub
Now
Branch 1
Branch 2
Branch 3
Microsoft 365
Teams
Salesforce
AWS
Sites reach cloud apps directly. HQ is one destination among many
Where traffic goes, then and now

Routing cloud traffic back through headquarters creates three problems:

  • Delay: A Teams call from a branch travels to HQ, out to the internet, and back again. Every extra hop adds latency and jitter that users hear.
  • Congestion: The hub circuit becomes a bottleneck as every site competes for the same pipe.
  • Cost: Adding MPLS bandwidth or new MPLS sites is slow and expensive compared with business internet.

Microsoft makes the same point in its own guidance. Its network planning documentation for Teams recommends routing Teams traffic around the VPN and using local or regional internet egress to reach Microsoft data centers. Local breakout at each site is exactly what SD‑WAN is built to do.

Hybrid work added a fourth problem. Employees now connect from home offices, clinics, job sites, and hotel rooms, not only from branches. A network built for fixed sites can't see or manage those users.

SD‑WAN was built to close that gap. It lets each location use the connections it has, reach cloud applications directly, and follow one set of policies managed from the center.

How does SD‑WAN work?

SD‑WAN works by measuring every network link at every site in real time and sending each application over the path that best meets its needs. A central cloud controller sets those rules once and pushes them to every location.

SD‑WAN places a software layer, called an overlay, on top of the physical connections at each site. The physical links underneath are the underlay. SD‑WAN doesn't care what the underlay is. It treats every link as a resource and decides, application by application, which one to use.

Branch users
Teams, POS, EHR
Cloud controller
Pushes policies and analytics
SD‑WAN edge device
Cloud apps
and data center

Here's what happens every second at each site:

  1. 1
    The edge device identifies the application
    It recognizes a Teams call, a card payment, a video stream, or a backup job as the traffic leaves the site.
  2. 2
    It measures every link
    Latency, jitter, and packet loss are tracked on each connection in real time.
  3. 3
    It matches the app to the best path
    Policy says voice needs low jitter, so the call rides the cleanest link. A backup can take whatever capacity is left.
  4. 4
    It reroutes when a link degrades
    If the fiber circuit drops, traffic shifts to 5G or broadband. Depending on the platform, an active call can move without dropping.
  5. 5
    The controller keeps every site in sync
    IT changes a policy once, and every location picks it up.

The key design idea is separating the control plane from the data plane. The control plane decides how traffic should flow and lives in the cloud. The data plane moves packets and lives at each site. That split is what lets one team run hundreds of locations.

What is SD‑WAN architecture?

SD‑WAN architecture has three core parts: an edge device at each site, a central controller that decides how traffic should flow, and a management console IT uses to run every location. Underneath sit the internet, 5G, and MPLS links that the edge devices steer traffic across.

Core components

Controller
Orchestrator
Pushes policy to every site
Branch
SD‑WAN edge
Broadband
5G
MPLS
Underlay
Encrypted overlay
Data center
SD‑WAN edge
Broadband
5G
MPLS
Underlay
The parts of an SD‑WAN
Controller
Orchestrator
Pushes policy to every site
Branch
SD-WAN edge
Underlay
Broadband
5G
MPLS
Encrypted overlay
Data center
SD-WAN edge
Underlay
Broadband
5G
MPLS
The parts of an SD-WAN
  • Edge device: The physical or virtual appliance at each site. It connects to the local network and the WAN links, and it enforces policy on every packet.
  • Controller: The brain. It watches network conditions, calculates the best paths, and tells every edge device what to do.
  • Orchestrator or management console: The single interface IT uses to build templates, push configuration, roll out updates, and see analytics across every site.
  • Gateways and points of presence (PoPs): Optional cloud nodes that optimize traffic to SaaS and public cloud, or connect sites that can't reach each other directly.
  • Underlay: The actual transport links. Fiber, dedicated internet, broadband, 5G, LTE, satellite, and MPLS all qualify.

Types of SD‑WAN architecture

Architecture
How it works
Best for
Appliance-based, cloud-managed
Edge devices at each site, managed from a cloud console. Traffic travels over the public internet between sites.
Most branch networks. Cisco Meraki, Juniper, and Arista all use this model.
Cloud-delivered with a private backbone
Sites connect to the nearest PoP, and traffic crosses a provider-owned global backbone instead of the open internet. Security is applied in the PoP.
Global and SaaS-first organizations. Cato Networks SD‑WAN uses this model.
Hybrid
SD‑WAN runs over MPLS at some sites and internet at others, often during a phased migration.
Organizations moving off MPLS site by site.

Common topologies

Hub and spoke
Branches connect to one or more central hubs. Simple to control and common when a data center still hosts key apps.
Full mesh
Every site can reach every other site directly. Best when branches talk to each other often, such as voice between offices.
Partial or hybrid mesh
Critical sites mesh together while smaller sites use hub and spoke. Most real networks end up here.

What are the benefits of SD‑WAN?

The main benefits of SD‑WAN are faster cloud application performance, higher uptime through automatic failover, lower connectivity costs, faster site openings, and simpler management from one console.

Faster cloud applications
Sites reach Microsoft 365, Teams, Zoom, and AWS directly instead of backhauling through headquarters.
Higher uptime
Two or more active links per site with automatic failover. When one circuit fails, stores, clinics, and offices stay online.
Lower connectivity cost
Business broadband and 5G carry traffic that doesn't need a private circuit, so MPLS spend shrinks or goes away.
Faster site openings
Zero-touch provisioning and templates bring a new location online in days rather than the weeks or months a new circuit can take.
Simpler operations
One console, one policy set, and automated changes replace router-by-router configuration.
Better visibility
Real-time analytics show which site, link, or application is causing a problem.
A path to SASE
SD‑WAN is the networking half of SASE, so security services can be added later without rebuilding the network.

Where AI-driven SD‑WAN adds more

Some platforms layer AI operations on top of routing. Juniper Networks' Marvis assistant, for example, answers plain-language questions like why Zoom keeps dropping in one building, then points to the root cause. For lean IT teams, that turns hours of troubleshooting into minutes.

What are the challenges of SD‑WAN?

The biggest SD‑WAN challenges are choosing the right platform, the quality of the internet links underneath, security gaps from direct internet access, and the ongoing work of running the network. Each one has a clear fix when it's planned for up front.

Challenge
Why it matters
How to handle it
Picking the right platform
Dozens of vendors look similar on a spec sheet, but fit varies widely by site count, IT skill, and security needs.
Start from requirements, not features. Compare more than one platform.
Underlay quality
SD‑WAN can only choose among the links it has. Two weak links are still weak.
Pair SD‑WAN with diverse, business-grade connectivity at every site.
Security gaps
Sending traffic straight to the internet from every branch widens the attack surface.
Use built-in firewalling and segmentation, then add SASE services where needed.
Troubleshooting dynamic paths
When traffic moves between links, finding the cause of a problem gets harder.
Choose a platform with strong analytics or AI-assisted root cause analysis.
Cloud connectivity choices
Direct internet, private cloud on-ramps like Azure ExpressRoute, and PoP backbones each trade cost for performance.
Map critical apps to where they're hosted before choosing.
Proving the ROI
Savings go beyond circuit cost. Downtime, staff time, and tool consolidation all count.
Build the business case on total cost, not the monthly circuit bill alone.
Running it day to day
Someone has to own design, monitoring, updates, and incident response across every site.
Decide early between DIY, co-managed, and fully managed.

What are the SD‑WAN management models?

There are four main SD‑WAN management models: DIY, co-managed, fully managed, and Network as a Service (NaaS). The right one depends on the size of your IT team and how much control you want to keep.

You run everythingProvider runs everything
DIY SD‑WAN
Your team buys the hardware and licenses, then handles design, deployment, policy, monitoring, and support. Full control, but you need engineers with platform expertise and time to run it.
Co-managed SD‑WAN
A provider handles deployment, monitoring, and lifecycle work while your team keeps visibility and a say in policy.
Fully managed SD‑WAN
The provider owns the network end to end, from design through daily operations and incident response. It fits lean IT teams.
Network as a Service (NaaS)
Hardware, licensing, connectivity, and management in one subscription. No large upfront purchase, and cost scales with the number of sites.
How Momentum delivers it

Momentum delivers every SD‑WAN platform it offers as NaaS, with management included from day one. Hardware is rented, licensing is simplified, and co-managed options are available for teams that want hands on the controls.

How secure is SD‑WAN?

SD‑WAN is more secure than an unmanaged internet connection, but on its own it isn't a complete security solution. How secure it is depends on the platform and how it's deployed.

What most SD‑WAN platforms include

  • Encrypted overlay tunnels between sites, so traffic crossing the public internet stays private.
  • Segmentation that keeps guest Wi-Fi, point-of-sale, IoT devices, and corporate traffic apart.
  • Stateful firewalling and access control lists at the edge.
  • Centralized policy, which removes the configuration drift that happens when every router is set up by hand.

Where gaps appear

When each branch sends traffic straight to the internet, each branch becomes an entry point. Remote users outside any site aren't covered at all. SaaS usage, data movement, and web threats need inspection that basic SD‑WAN doesn't provide.

Open breakout
Branch
!
Internet
Each branch becomes an entry point, with no inspection
Inspected breakout
Branch
NGFW
IPS
SWG
DLP
Internet
Traffic passes through a security layer before it reaches the internet
Direct internet access, with and without a security layer

How organizations close them

Secure SD‑WAN
Platforms such as Cisco Meraki build next-generation firewall, intrusion prevention, and content filtering into the edge device.
SASE
Cloud-delivered security, including ZTNA, secure web gateway, CASB, and DLP, applies the same policy to sites and remote users. Cato Networks delivers SD‑WAN and this full stack as one platform.

The stakes keep rising. IBM's 2026 Cost of a Data Breach Report puts the global average cost of a breach at a record $4.99 million, up 12% from the year before. Organizations that use AI and automation extensively in security save an average of $1.93 million compared with those that use none.

What is the role of SD‑WAN in SASE?

SASE (secure access service edge) combines networking and security into one cloud-delivered service. SD‑WAN is the networking half. The security half is often called SSE (security service edge).

65%

Gartner projects that by 2027, 65% of new SD‑WAN purchases will be part of a single-vendor SASE offering, up from 20% in 2024.

Users
Branch
Home
Mobile
SD‑WAN
Networking
ZTNA
SWG
CASB
FWaaS
DLP
Security service edge
Apps
SaaS
Public cloud
Data center
What makes up SASE
Users
Branch
Home
Mobile
SD‑WAN networking
ZTNA
SWG
CASB
FWaaS
DLP
Security service edge
Apps
SaaS
Public cloud
Data center
What makes up SASE
  • SD‑WAN gets traffic from every site onto the best path.
  • SSE services inspect that traffic and verify every user and device before granting access.
  • One policy follows the user, whether they're in a branch, at home, or on the road.

Most organizations don't adopt SASE in one step. Common starting points include:

SD‑WAN first
Modernize branch connectivity now, then add security services as firewall and VPN contracts end. Cato Networks SD‑WAN is built for this path.
Remote access first
Replace the VPN with standalone ZTNA, which Cato Networks now offers as its own module, then expand.
All at once
Consolidate network and security onto one platform when vendor sprawl is the main pain.

How do SD‑WAN platforms compare?

There's no single best SD‑WAN. Each leading platform is built around a different priority, so the right choice depends on your sites, your IT team, and your security plans. Momentum delivers four of them as a managed service, which lets the recommendation follow your requirements rather than a vendor quota.

Worked with the Momentum Channel Team on customer quotes and received responses and recommendations quickly and accurately.

Rami A., Momentum channel partner

Side by side

Stand-out capability
Session Smart Routing, Marvis AI, WAN Assurance
Meraki Dashboard, zero-touch templates, Auto VPN
CloudVision, BGP/OSPF/VRF, REST APIs
Zero-touch Sockets, private global backbone, one console for SD‑WAN and SASE
Failover
Session-level failover built to keep active calls connected
Dual uplinks plus cellular backup; fast on a hard link loss, a few minutes when a link degrades but stays up
Active-active links with deterministic routing
Active-active links with real-time packet loss recovery
Often replacing
MPLS and legacy WAN or LAN gear
Consumer-grade firewalls and manual site VPNs
Cisco ISR or Viptela environments
MPLS, appliance-heavy SD‑WAN, and standalone firewalls and VPNs
Typical customer
Healthcare, finance, education, large distributed enterprises
Retail, restaurants, franchises, SMBs with many sites
Public sector, utilities, higher ed, engineering-led IT
Global, multi-country, SaaS-first organizations
Choose it when
Troubleshooting time and Teams or Zoom quality are the pain
You need to open sites fast with a lean IT team
You need precise control and audit-ready design
You need global reach now and want to add security later on the same platform

Questions that point to the right platform

How many sites, and how fast are you adding them?
Many small sites opening quickly favors Meraki.
Points to Meraki
How much time does IT spend chasing network issues?
AI-assisted troubleshooting favors Juniper.
Points to Juniper
How much control do you need over routing and segmentation?
Strict compliance and complex routing favor Arista.
Points to Arista
How many countries do your sites span?
Global, multi-country footprints that need steady long-haul performance favor Cato Networks SD‑WAN.
Points to Cato SD‑WAN
How many vendors run your network and security today?
Sprawl and remote-access pain favor Cato Networks SASE.
Points to Cato SASE
How voice-heavy are your sites?
Contact centers and Teams-heavy offices benefit from Juniper's session-level failover. For most retail and branch apps, Meraki's failover is fast enough.
Juniper or Meraki
Where do your user identities live?
On-premises Active Directory aligns well with Meraki. Cloud-first Microsoft Entra environments are a strong fit for Cato.
Meraki or Cato

Not sure which fits? Get a platform recommendation mapped to your sites and apps.

Talk to an SD‑WAN expert

SD‑WAN vs MPLS, VPN, SASE, and NaaS

SD‑WAN manages traffic across many links and sites. MPLS is a private carrier circuit, a VPN is a single encrypted tunnel, SASE adds cloud-delivered security to SD‑WAN, and NaaS is a way to buy the whole network as a subscription.

SD‑WAN
MPLS
VPN
SASE
NaaS
Traditional WAN
What it is
Software overlay that manages many links across many sites
Private carrier network with fixed, labelled paths
Encrypted tunnel between two points
SD‑WAN plus cloud-delivered security in one service
Hardware, connectivity, and management as a subscription
Hardware routers and fixed circuits back to a hub
How traffic moves
Per-application path selection in real time
Predefined paths with quality of service
One tunnel, one path
Through nearby PoPs where it's inspected
Set by the provider's platform and policies
Static routes, usually through headquarters
Cloud performance
Direct to cloud, low latency
Often backhauled
Depends on the internet link
Direct to cloud via PoPs
Depends on the platform used
Backhauled, higher latency
Security
Encryption and segmentation, SASE-ready
Private, but no threat inspection
Encryption only
Full stack: ZTNA, SWG, CASB, FWaaS, DLP
Provider-managed
Separate firewalls at each site
Scaling
Add a site with a template
New circuit per site, weeks to months
Gets complex past a few sites
Add users and sites from the cloud
Add sites to the subscription
Slow and hardware-heavy
Cost model
Uses lower-cost internet links
High per-site and per-Mbps cost
Low
Subscription
Predictable monthly subscription
High capital and circuit cost
Best for
Multi-site performance and uptime
Latency-critical private links
Simple remote or site-to-site access
Securing sites and remote users together
Teams that want outcomes without owning gear
Legacy hub-and-spoke designs

These aren't always either-or choices. SD‑WAN can run over MPLS, sit inside a SASE platform, and be delivered as NaaS all at once.

SD‑WAN FAQs

Software-defined wide area network. "Software-defined" means routing decisions come from central software policy rather than being set by hand on each router.

SD‑WAN and SASE
Find the right SD‑WAN for your business
Compare platforms
Book a meeting

Find the SD‑WAN that fits your network

Tell us about your locations, applications, and security plans. A Momentum SD‑WAN specialist will recommend the right platform and show you what it looks like as a managed service.

Talk to an SD‑WAN expert