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PyNet Labs- Network Automation Specialists

SD-WAN vs IPsec VPN – What’s the difference?

Author : PyNet Labs
Last Modified: August 7, 2024 
Date: August 7, 2024
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Introduction

As a network administrator or IT professional, you are already aware of the fact that there are some of the difficulties involved in monitoring and protecting your organization’s network. Two widely used technologies that make it possible to manage as well as secure your organization’s networks are SD-WAN (Software-Defined Wide Area Networking) and IPsec VPN (Internet Protocol Security Virtual Private Network). Both technologies offer secure and reliable connectivity, but there are many differences in the way these technologies are designed and function.

In this blog post, we will look into SD-WAN and IPsec VPN, exploring what each technology is, and how they work, and will help you understand SD-WAN vs IPsec VPN. To gain a deeper understanding of SD-WAN and its implementation, consider exploring our Cisco SD-WAN training. This course can provides valuable insights into designing, deploying, configuring, and managing Cisco SD-WAN solutions effectively.

Difference between SD-WAN and IPsec VPN

When you compare SD-WAN vs IPsec VPN, you will notice that these are two distinct network technologies. However, both technologies aim to improve network connectivity. On one hand, SD-WAN aims to improve network performance and administration by intelligently routing traffic over numerous connections. It prioritizes applications and adjusts to network changes, hence increasing overall efficiency.

IPsec VPN, on the other hand, primarily secures communication by establishing encrypted tunnels between endpoints, thereby safeguarding data from unauthorized access. It is efficient at offering site-to-site communications and secure remote access.

It is important to first understand the basic concept of the SD-WAN and IPsec VPN before getting into the detailed comparison of SD-WAN vs IPsec VPN.

What is SD-WAN?

SD-WAN is a software-defined approach that is basically utilized to manage as well as optimize WAN connections. It makes use of a centralized controller in order to orchestrate network traffic. This will directly ensure that the applications are delivered in an efficient and secure manner across the WAN. In general, SD-WAN solutions involve a combination of both hardware and software components, which further include:

  • A centralized controller or orchestrator
  • Edge devices or routers
  • Software agents or clients
SD-WAN Architecture containing SD-WAN Controller, branch office, SD-WAN Router, Fiber Optics, Public Internet, etc.

SD-WAN solutions provide a range of benefits, including:

  • Improved network visibility and control
  • Enhanced security and threat protection
  • Simplified network management and orchestration
  • Increased agility and flexibility
  • Better support for both the cloud-based applications as well as services

What is an IPsec VPN?

IPsec VPN is a traditional VPN technology that makes use of encryption and tunneling protocols in order to provide a direct encrypted VPN connection between two points. IPsec VPNs employ Internet Protocol Security or IPsec in order to secure the IP packet transmission by encrypting the packets before forwarding.

IPsec VPNs typically involve:

  • A VPN client or software agent
  • A VPN server or gateway
  • Encryption and authentication protocols (e.g., AES, SHA)
IPsec VPN Architecture containing Node A and B, VPN Device, Data packet, and Public Internet.

IPsec VPNs provide a range of benefits, including:

  • Secure, encrypted connections
  • Authentication and access control
  • Support for remote access and mobile workers
  • Compatibility with existing network infrastructure

Now that you have a basic knowledge of the two technologies, let us now understand the basic difference between SD-WAN and IPsec VPN.

SD-WAN vs IPsec VPN

While both SD-WAN and IPsec VPN provide secure and reliable connectivity, there is a significant difference between SD-WAN and IPsec VPNs. Here are some of the key differences:

FactorsSD-WANIPsec VPN
ArchitectureSD-WAN follows a Software-defined approach where it uses a centralized controller to manage and configure WAN connectionsIPsec VPN follows a traditional, hardware-based approach that uses a VPN gateway or concentrator to establish and manage VPN connections.
SecurityIncludes a range of security features such as firewalls, intrusion detection, and encryptionIt uses encryption and authentication to secure data but may require additional security features to be added separately.
ScalabilityHighly scalable, can easily support large numbers of remote sites and users.It can be challenging to scale and may require additional hardware or licenses to support large numbers of users.
ManagementCentralized management and orchestrationThey are typically managed through individual VPN clients or servers.
Cloud SupportDesigned to support cloud-based applications and servicesIt may provide a different level of cloud support than SD-WAN.
Network VisibilityFacilitates real-time visibility of the networks and enables organizations to quickly identify the WAN connections and resolve potential issues.It is less likely to offer transparency into a network; thus, it can be challenging to diagnose inefficient VPN connections.
CostSD-WAN is considered more cost-efficient, especially in cases when an organization has a significant number of remote branches.IPsec VPN may be more costly, especially for very large companies that may have numerous offices/branches.
ComplexitySD-WAN can be more challenging to implement and manage compared to traditional WAN, especially for organizations new to SDN.Implementing IPsec VPN can be easier, especially for those organizations that use traditional VPNs
Quality of Service (QoS)
It has QoS features to guarantee that essential applications get adequate bandwidth and precedence to the network.
It may not include QoS features and need further configuration to ensure that critical applications get an adequate amount of bandwidth and prioritization.
PerformanceOptimized for high-performance, low-latency applicationsIPsec VPN can increase latency and the amount of performance overhead required by the encrypted and tunnelled connection.

These are the differences between SD-WAN and IPsec VPN.

Which to Choose SD-WAN or IPsec VPN?

The choice between SD-WAN and IPsec VPN depends on your business needs and priorities.

You can choose SD-WAN, when

  • Multiple branch offices and each require optimized application performance.
  • If you need a flexible network architecture.
  • You want to reduce the cost of WAN.

You can choose IPsec VPN, when

  • Data Security and Privacy is your top concern.
  • You want to provide secure remote access to your employees.
  • You want site-to-site connectivity and strong encryption.

This makes it clear which one to choose comparing SD-WAN vs IPsec VPN.

Combining SD-WAN with IPsec VPN

Yes, both these technologies can be combined to offer a comprehensive solution for businesses that require complex Networks. In many cases, SD-WAN and IPsec VPN can complement each other such as, SD-WAN will optimize the network traffic while IPsec VPN will help in providing the required security.

Frequently Asked Questions

Q1 – Is SD-WAN better than VPN?

Overall, SD-WAN is superior to VPN in most aspects because it directly employs multiple Internet connections for faster, more reliable, and secure network connection.

Q2 – What is the difference between IPsec and SD-WAN?

The difference between SD-WAN and IPsec VPN is simple. IPsec can be described as a security protocol that is used to encrypt data; on the other hand, SD-WAN can be described as the networking technology meant to enhance the performance and reliability of multiple connections.

Q3 – Does Cisco SD-WAN use IPsec?

Yes, Cisco SD-WAN uses IPsec for encryption to secure data transmission between its network devices.

Q4 – Is VPN more secure than WAN?

VPN and WAN are different technologies. VPN focuses on secure data transmission, on the other hand, WAN mainly focuses on connecting networks. A VPN can be part of WAN in a network to enhance security.

Conclusion

While both SD-WAN and IPsec VPN are designed to enhance the organization’s network security and optimization, they differ substantially in their design, offered solutions, and functionalities. SD-WAN is a new model for managing WAN connections based on software, which implies security functions, unified management, and compatibility with cloud services. IPsec VPN also comes as a traditional point-to-point VPN service, which offers both encryption and authentication but lacks the security and scalability provided by SD-WAN. In this blog, we have looked into SD-WAN vs IPsec VPN based on different factors for better understanding.

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