SD-WAN vs MPLS: A Comparative Analysis

22 August 2017 | Posted by Cass Information Systems, Inc.

The SD-WAN vs MPLS debate has been bubbling away for years. On the surface, it’s a case of new vs old, but, delve a little deeper and it’s evident the discussion is far more complex.

Before SD-WAN emerged to offer the benefits of software-defined networking to a traditionally hardware-based industry, MPLS was the king of connectivity – acting as a backbone to WANs everywhere.

But, that mantle of sovereignty has been slowly slipping away. And, in recent years, MPLS sales have dipped in response to a rapidly expanding SD-WAN market.

This has led many to ask “is MPLS dead?”, but, in truth, the whole debate has become overdramatized. Global industries, especially retail and manufacturing, must consider traffic performance and security on an end-to-end basis, incorporating cost, reliability, and availability.

The focus should not be on which one solution provides the greatest benefits, but how to leverage multiple solutions to attain the best service.

In this post, we provide a comparative analysis of SD-WAN and MPLS, focusing on the numerous dependent benefits that each technology offers, and present a detailed insight into the future of the networking environment and why a hybrid approach may be the best option for your enterprise.

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Reliability

Reliability refers to the ability of a network component to consistently perform as expected.

In theory, a reliable product is totally free of technical errors; in practice, however, vendors frequently express a product's reliability quotient as a percentage.

While there is no such thing as 100% uptime (yet!) reliability has always been one of the major selling points of MPLS.

MPLS

MPLS' reliability is possible because it uses labels to make data-forwarding decisions, isolating packets of data. And allows providers to assign a higher priority to certain network traffic, enhancing predictability.

MPLS can guarantee a high quality of service (QoS) because it is less susceptible to packet loss – where data travelling across a network fails to reach its destination – allowing an enterprise to better meet real-time protocols like virtual desktops, VoIP and video conferencing without any substantial loss of quality.

SD-WAN

SD-WAN, in contrast, cannot guarantee QoS. But it is able to support dynamic path selection, meaning that the SD-WAN controller can select the most appropriate path for specific application traffic, optimizing load balancing and ensuring data packets avoid congestion.

However, SD-WAN is purely an internet service, and while total internet blackouts are a rare occurrence, should they occur, the consequences can be serious.

Performance

Performance refers to the measure of service quality that is seen and experienced by the user.

As each network is uniquely shaped and designed, there are many ways to measure performance, but one of the most applicable is to calculate the quality of data transfer.

MPLS

MPLS is frequently accredited with minimal packet loss and a lower latency because it is a managed service.

MPLS users have full control over traffic engineering and routing policies and all performance attributes are backed with Service Level Agreements (SLAs). MPLS is designed for maximum performance, providing the user with the optimum experience even for real-time traffic like voice and video.

SD-WAN

SD-WAN, on the other hand, is an edge-technology; SD-WAN lacks SLAs and users do not have full control over traffic engineering.

But, the technology can recognise latency-sensitive and mission-critical workloads, and, through the aggregation of connections, SD-WAN dynamic path selection can continue to provide a high-level of performance for the user if effectively managed. 

Security

Security refers to the ability of a network component to protect data from unauthorized access, misuse, malfunction, modification, destruction, or improper disclosure.

Network data security should be one of the highest priorities when considering a network setup, due to the growing threat of hackers trying to leverage data from enterprises to sell or ransom.

MPLS

MPLS is frequently regarded as secure, but perhaps a better definition would be that the technology is private. There is no inherent encryption on data routing, but the predetermined label paths within the network ensures data is kept safe from those without appropriate authorization.

Remotely, MPLS is virtually impenetrable. But, some believe that hackers are now more inclined to take data by physically breaching a system. If an intruder manages to gain access to the core network, they can collect and analyze data relatively easily. To avoid this eventuality, enterprises can choose to encrypt their data before it leaves their site.

SD-WAN

SD-WAN security is more granular. The statistical analysis of IP traffic, ports, and source and destination traffic allows the technology to become very sophisticated at only allowing the right traffic through.

SD-WAN also has built-in encryption capabilities, ensuring that only authorized users are able to access and view assets. What's more, should your network get hacked, network segmentation ensures that access is confined to just one area, so damage is limited. 

Availability

Availability is a general term that refers to how easy a network component is to use or obtain.

In theory, an available product should be simple to procure no matter the global geographical location of an enterprise; in practice, however, product availability varies significantly with respect to the country, state, and city.

MPLS

MPLS came into vogue to support data transfer between sites, including voice and video files and critical applications. This caused a rapid expansion in vendors and increased enterprise MPLS availability nationwide.

Today, MPLS is ubiquitous within the U.S. and Europe, but the likes of Asia, North America, and Oceania have been much slower to adopt. For this reason, global enterprises still find it challenging to locate an MPLS solution in these areas.

SD-WAN

SD-WAN, in contrast, is a far more modern technology that has only recently risen to prominence. While SD-WAN is predicted to be the next big thing Gartner estimate the technology will be worth $1.3 billion in 2020  this disruption will likely happen almost exclusively throughout the western world.

While it is predicted that SD-WAN will transform enterprise networks from slow and fractured to agile and optimized at a fraction of the cost of traditional WANs. Currently, the technology is inaccessible worldwide, and availability is limited.

Value for Money

Value for money refers not only to up-front costs, but also the subsequent costs or cost savings that are accrued as a direct result of purchase.

As vendor prices can vary quite significantly, the spectrum of product pricing is substantial, but there are common trends that are easily identifiable.

MPLS

MPLS has always been regarded as an expensive solution. But, enterprises have always been willing to pay the additional costs due to the stability and reliability of the technology.

The reasons MPLS continues to be so expensive is due to demand. The lack of QoS and the imperfect reliability and predictability of internet-based solutions has ensured that enterprises are still willing to pay above and beyond. However, as modern-day solutions have become more secure and cost-effective, many enterprises have begun to question the price of reliability.

SD-WAN

The value of an SD-WAN solution is not only that it’s a fraction of the price of MPLS, but also that it creates further cost savings by reducing reliance on expensive lines, while maintaining overall network performance.

SD-WAN makes it possible to leverage all available network connections to their full capacity, helping to prevent costs associated with lost productivity, while also facilitating the best performance of critical applications. Increasing the value for money far beyond that of an MPLS solution.

The Future of Networking

The benefits of SD-WAN include cost, availability, and performance, as well as other tangential benefits such as ease of deployment and uptime. But, private-based networking such as MPLS is still in demand, particularly in enterprises that require a high-level of reliability, predictability, and security.

However, when enterprises debate MPLS vs SD-WAN they need to realise that there is always a third option to consider: both. 

A hybrid approach can provide the benefits of each solution, offering the cost-saving advantages of SD-WAN coupled with the reliability and performance of MPLS.

This post is the third in a 6-part series that will explore everything an enterprise needs to know about SD-WAN, and how incorporating an SD-WAN solution with existing infrastructure can help enterprises get the most out of their network.

In part four, now available here, we look at how leveraging SD-WAN can support enterprises within new and temporary locations, exploring the way in which LTE can be utilized to best suit an enterprise's ever-changing requirements. To follow this blog series, sign up to our blog digest, or to gain up-to-date insight into how to extract the maximum value from your SD-WAN deployment, while smoothing the transition process, download: The Complete Guide to SD-WAN Deployment.

SD-WAN Deployment

Topics: SD-WAN

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