SD-WAN vs MPLS – What’s the Difference?

Introduction

WAN, or Wide Area Network, plays a major role in connecting computer networks over long distances. It ensures that there should be smooth communication as well as efficient data transfer between different locations. Companies and network engineers rely heavily on WAN technologies to link their offices, data centers, and remote sites. There are two major methods that are used for WAN connectivity. One is the traditional method known as Multiprotocol Label Switching (MPLS) and the other is a modern alternative to MPLS known as Software-Defined Wide Area Networks (SD-WAN). In this blog, we will discuss the basic difference between the two, i.e., SD-WAN vs MPLS.

Let’s understand the basic difference between SD-WAN and MPLS. Understanding these differences is crucial for making informed decisions about your network infrastructure. For those looking to gain deeper expertise in SD-WAN, PyNet Labs is a leading provider of SD-WAN training courses. Our curriculum equips you with the knowledge and skills to design, deploy, and manage SD-WAN solutions effectively.

SD-WAN vs MPLS

In the world of Wide Area Networks (WANs), the debate between SD-WAN vs MPLS hinges on balancing cost, flexibility, and performance. Below, we have discussed the difference between SD-WAN and MPLS in a tabular form based on different factors.

We have discussed SD-WAN vs MPLS based on several factors. Now, let’s understand what SD-WAN and MPLS are.

What is SD-WAN?

SD-WAN, or Software-defined Wide Area Network, is a technology that is mainly used by organizations in order to manage and optimize their wide area network (WAN) using software-based controls. It allows organizations to dynamically route traffic based on the most efficient path, improve network performance as well as security, and, most importantly, help in prioritizing critical applications.

Now, when we talk about SD-WAN solutions, it involves the use of centralized controllers in order to manage and configure network traffic flow and the use of virtualization and automation to simplify network management.

This technology is particularly useful for organizations with multiple branch locations or remote offices that need a reliable and secure network connection.

What is MPLS?

MPLS or Multi-Protocol Label Switching is a technique that is used in telecommunications networks in order to speed up the flow of network packets. Now, how Does MPLS speed up the flow of packets? It assigns a short label to each packet and then forwards them based on these labels rather than the full IP header. With this, efficient routing of data packets within a network can be achieved.

MPLS is mainly used by service providers in order to create VPNs (Virtual Private Networks) for their customers. This allows them to securely connect to multiple locations across a shared network infrastructure.

Apart from this, MPLS also supports traffic engineering, enabling network operators to control the flow of traffic and optimize the use of network resources.

Now that we have a basic understanding of both the technologies, i.e., MPLS and SD-WAN. Now, let’s compare SD-WAN vs MPLS to understand their difference in detail.

Difference between SD-WAN and MPLS

Both SD-WAN and MPLS are technologies that are mainly used for connecting multiple locations in a WAN. Some of the key difference between SD-WAN and MPLS are:

Network Architecture

SD-WAN uses software-defined networking principles in order to route traffic based on real-time network conditions dynamically.

Whereas, MPLS uses a dedicated connection with predefined paths and labels to route traffic. This assists in providing a reliable and predictable network architecture.

Scalability

SD-WANs are easily scalable with the ability to add new connections and locations without the need for any significant hardware changes. This offers flexibility in terms of growing networks.

On the other hand, MPLS scalability can be complex and time-consuming. The reason behind this is that MPLS requires additional hardware and configuration changes in order to expand the network.

Cost

In general, SD-WANs are more cost-effective than MPLS. As it leverages cheaper internet connections and, side-by-side, optimize traffic routing dynamically.

MPLS is typically more expensive as compared to SD-WAN. This is due to the dedicated nature of connections and service level agreements provided by service providers.

Traffic Optimization

In the case of SD-WAN, it optimizes traffic by dynamically selecting the best path which is totally based on application requirements, network conditions, and policies. This will lead to efficient utilization of available bandwidth.

On the other hand, MPLS offers predetermined paths for traffic routing. This may not be as flexible or optimized as compered to SD-WAN.

Security and Encryption

SD-WAN offers advanced security features such as encryption, segmentation, and centralized policy management to enhance network security.

Whereas MPLS is considered secure due to its private nature.

Deployment and Management

SD-WAN provides centralized management and orchestration. This makes it easier to deploy as well as manage network configurations across multiple locations.

In the case of MPLS, deployment as well as management may require more manual configuration and oversight, especially adding new sites or making any changes to the network.

Redundancy and Failover

SD-WAN supports multiple links and can dynamically switch traffic to backup links in case of link failures, providing high availability and redundancy.

In the case of MPLS, redundancy options are available but may require additional configurations and costs to implement failover mechanisms.

Quality of Service (QoS)

SD-WAN Offers granular control over QoS policies. This allows for the prioritization of critical applications and ensures consistent performance levels.

Whereas, MPLS provides inherent QoS capabilities with guaranteed service levels for applications that require consistent performance and low latency.

These are some of the difference between SD-WAN and MPLS based on various factors.

Does SD-WAN replace MPLS?

Not always. For a lot of businesses, MPLS is still an efficient and reliable alternative for WAN connectivity. In sectors like defense, healthcare, or other environments that are controlled, businesses may choose to keep MPLS due to their need for reliable, stable performance, and might require compliance or security. Additionally, some companies prefer not to migrate sensitive applications or data completely to the cloud. MPLS is able to handle those tasks effectively.

The adoption of SD-WAN is increasing rapidly because it increases the performance of applications, flexibility, and control of costs. In reality, the majority of businesses don’t make the switch in a single day. Instead, they opt for an approach that is a mix of MPLS in situations where it makes sense (for the most critical data) and SD-WAN in areas where it can be of the greatest benefit (for branches, cloud apps, and the internet connectivity).

This lets teams modernize at a steady pace without disrupting business operations.

Use Cases: When to Use SD-WAN and MPLS?

When SD-WAN is a better fit

1. Many branches and cloud applications: If teams use Office 365, Google Workspace, Salesforce, etc., SD-WAN helps with the way they connect to SaaS and cloud-based services.

2. Need to speed up rollout: If you frequently start new branches or increase the number of users, SD-WAN is easier to set up and manage centrally.

3. Controlling costs is crucial: If MPLS costs are high, SD-WAN could make use of broadband (and backup with LTE/5G) to lower costs.

4. Multiple links per website: If you want active-active connections and automated failovers between ISP links.

5. Control via apps: If you need to prioritize business applications (voice/video/ERP) and cut down on latency and loss of packets.

6. Hybrid networks: You can use MPLS with the Internet and manage both from one policy layer.

When MPLS is a better fit

• Strict compliance or controlled settings: When policies require private connectivity for specific processes or data.

• Highly predictable performance requirements: For applications that require consistent latency and robust SLAs between fixed locations.

• Legacy applications within the data center: When the majority of traffic occurs between branch offices and a centralized data center, as well as the layout is reliable.

• Limited IT resources to change: If you prefer an old-fashioned, provider-managed WAN that has fewer moving parts internally.

• Remote websites with weak internet options: If broadband is inaccessible or unreliable, MPLS will be the best and most reliable option.

When a hybrid approach makes sense (most common)

• Use MPLS only for essential applications and SD-WAN for all other things: Use MPLS for prioritised traffic and SD-WAN over the internet to use SaaS as well as general surfing.

• Gradual Migration: Start SD-WAN at some sites, test performance, and then increase the number of sites without cutting off too much.

SD-WAN Benefits Compared to MPLS

Below, we have discussed SD-WAN Benefits over MPLS.

1. Lower Cost: Compared to MPLS, SD‑WAN can reduce WAN spend by using broadband internet alongside (or instead of) costly private circuits, while still keeping traffic controlled.

2. Better App Performance: SD‑WAN can route traffic based on application needs. It can prioritize key apps and automatically choose the best path to reduce latency and packet loss.

3. Faster Changes and Scaling: MPLS upgrades and new site turn‑ups can take time. With SD‑WAN, companies can add sites, users, and policies faster using centralized management.

4. Higher Resilience: SD‑WAN supports active links, backup links, and failover. If one connection goes down, traffic can switch to another link with less disruption.

Frequently Asked Questions

Q1. Can you use MPLS with SD-WAN?

Yes, MPLS can be used with SD-WAN in order to provide secure and reliable connectivity for different branches. MPLS can be used as one of the transport options in an SD-WAN deployment to provide a private and predictable network connection for critical applications.

Q2. Why is SD-WAN better?

SD-WAN is better because it provides a better user experience by offering centralized management and improved application performance with enhanced security features.

Q3. What is the difference between SD-WAN and WAN?

The difference between SD-WAN and WAN is that WAN heavily relies on hardware-based configurations, which directly limit the flexibility and scalability. Whereas, in the case of SD-WAN, it uses software-defined networking in order to optimize traffic flow through centralized control and automation.

Q4. What is SD-WAN and why it is used?

SD-WAN stands for Software-defined Wireless Area Network which is a programmatic and automated approach in order to manage enterprise network connectivity.

Conclusion

Both MPLS and SD-WAN offer a unique set of features that are suitable for different networking needs. The choice between the MPLS and SD-WAN totally depends on various factors such as budget, network requirements, and, most importantly, business objectives. In this blog, we have discussed what MPLS and SD-WAN are, and we also have explained the difference between the two technologies, i.e., SD-WAN vs MPLS.