Thursday, November 1, 2018

SD-WAN vs MPLS in 2018: Where Are We Now?

November 2018 • 7 min read

Introduction

In 2018 the networking world buzzes with discussions about SD-WAN. Vendors flood the market, and enterprises weigh the pros and cons of moving away from traditional MPLS circuits. But is SD-WAN truly ready to displace MPLS at scale? And in what use cases does it make sense?

The Legacy of MPLS

MPLS has long been the gold standard for enterprise WAN. It offers predictable latency, tight SLAs, and traffic engineering. Carriers bundle it with managed services, making it attractive to businesses lacking in-house WAN expertise. However, MPLS also comes with high costs, inflexible provisioning, and lengthy deployment timelines—issues that motivate a shift.

The SD-WAN Proposition

Software-Defined WAN introduces agility to the network edge. It leverages broadband, LTE, and even satellite to create virtual overlays. Policies steer traffic based on performance, application type, or security needs. Centralized orchestration replaces CLI-based provisioning. SD-WAN promises better economics and faster rollouts—but these benefits depend on proper implementation.

2018 State of the Market

By late 2018, we observe large-scale SD-WAN adoption across verticals. Financial institutions pilot it in branches. Retail chains use it for point-of-sale systems. Multinational corporations embrace hybrid WANs—MPLS for critical paths, Internet for non-sensitive apps. Gartner predicts over 40% of enterprises will evaluate SD-WAN by year-end.

Security Becomes a Key Differentiator

Early SD-WAN solutions focus on connectivity, not security. In 2018, vendors shift to embed firewalls, segmentation, and even cloud-based ZTNA. Integration with cloud security platforms like Zscaler or Palo Alto Prisma becomes a market expectation. SD-WAN is no longer just a routing solution—it’s part of the broader secure edge architecture.

Performance and SLA Realities

Critics point out that public Internet lacks the deterministic quality of MPLS. This holds true, especially for real-time apps like voice and video. However, SD-WAN mitigates this through path monitoring, FEC, and dynamic failover. The key lies in deploying diverse transport types and validating the last-mile performance.

Cost Optimization—But With Caveats

SD-WAN reduces cost per Mbps by enabling use of commodity broadband. Enterprises escape expensive MPLS lock-ins. Yet, total cost of ownership depends on licensing, hardware refreshes, and additional security layers. Some enterprises overestimate savings by ignoring these factors. Careful financial modeling is required before transition.

Operational Models Are Shifting

SD-WAN demands new skills. Network teams now manage overlays, policies, and application-based routing. Tools shift from CLI to GUI and API. Enterprises invest in retraining staff or outsourcing SD-WAN management to MSPs. Operations center workflows evolve as visibility moves from routers to orchestration portals.

Cloud and SaaS Traffic Patterns

Traditional WAN designs backhaul Internet traffic to data centers for inspection. SD-WAN enables local breakout for services like Microsoft 365, Salesforce, and AWS. This reduces latency and offloads data center firewalls. As cloud adoption rises, SD-WAN becomes the de facto method for optimizing user experience.

SD-WAN vs MPLS: Complementary or Competing?

For most enterprises in 2018, SD-WAN does not fully replace MPLS. Instead, they coexist. Branches run hybrid WANs. MPLS provides SLA-backed backbone, SD-WAN provides agility and cost savings. The future points to more Internet-first WANs—but MPLS remains relevant where predictability matters most.

What to Watch Going Forward

  • SD-WAN convergence with SASE and cloud security
  • 5G and edge computing extending SD-WAN use cases
  • Carrier-managed SD-WAN offerings increasing in popularity
  • Open standards and interoperability between SD-WAN vendors
  • Analytics and AI driving performance optimization

Conclusion

In 2018, SD-WAN transitions from hype to maturity. Enterprises see real value—but also encounter real complexity. MPLS still holds its place for mission-critical paths, but SD-WAN rewrites how branch connectivity scales. Going forward, success belongs to those who balance flexibility, security, and performance.


Eduardo Wnorowski is a network infrastructure consultant and Director.
With over 23 years of experience in IT and consulting, he helps organizations maintain stable and secure environments through proactive auditing, optimization, and strategic guidance.
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