Maximizing network potential: How MPLS and SD-WAN can drive greater performance and efficiency

Networks · Aug 30, 2024

An optimized network is essential for businesses as it helps support operations and enhance company-wide productivity. As businesses grow, it’s crucial that their networks accommodate the expanding operations to enable scalability and long-term growth strategies.

Two of the most common networking technologies are Multi-Protocol Label Switching (MPLS) and Software-Defined Wide Area Network (SD-WAN). While each brings its own advantages, leveraging both together can help increase potential, allowing businesses to optimize network performance and efficiency at the right times.

In this article, we explore the differences between MPLS and SD-WAN and how they can work together to help organizations build a next-generation network.

What's the difference between MPLS and SD-WAN?

MPLS and SD-WAN are two powerful technologies that, when combined, can greatly enhance an organization's network performance. MPLS is a method to manage and direct data traffic within a network. It provides reliable, predictable performance for critical applications by establishing high-priority pathways for data, helping ensure consistent low-latency delivery.

SD-WAN introduces an intelligent layer that sits between the user and the network, intelligently routing traffic through the most efficient paths. This optimizes resource use, helping ensure that each type of traffic takes the best possible route for speed, reliability and cost-effectiveness.

Multi-Protocol Label Switching (MPLS)

With its dedicated and private network infrastructure, MPLS is known for its consistent and secure connectivity. From voice communications in VoIP services to facilitating financial transactions in banking applications, MPLS offers the reliability and security required for these types of applications. MPLS can help provide greater Quality of Service (QoS), prioritizing traffic to maintain smooth performance for latency-sensitive applications like voice and video.

Relying solely on MPLS can lead to several challenges, including high costs, limited flexibility and scalability issues. It often requires complex management and lacks the agility needed for quick network changes.

Software-Defined Wide-Area Network (SD-WAN)

SD-WAN makes it easier to manage a Wide Area Network (WAN) by using software to control how data moves through the network, separate from the physical hardware. This approach adds flexibility and can reduce costs, especially when combined with an existing MPLS network.

This technology allows for the use of various connection types, including broadband internet, fiber, cellular and MPLS. This flexibility enables easier scalability and adaptation to changing network needs without extensive hardware upgrades. SD-WAN also adds intelligence to your network so you can scale as you need along your network evolution journey. As your business needs change, you’ll be able to decrease or increase MPLS bandwidth over time.

SD-WAN also enhances network resilience with redundant paths for traffic, enabling continuous operation even during connection issues. Its simplified management interface makes configuration, monitoring and troubleshooting easier, accelerating service provisioning and improving overall agility compared to MPLS on its own.

Optimizing your network with a hybrid approach

Despite the differences between the two technologies, MPLS and SD-WAN can be effectively used together to optimize their respective strengths. MPLS, with its performance and security features, can provide a more reliable underlay for SD-WAN, helping with consistent connectivity and enabling the delivery of critical applications and services. For instance, in a scenario where a business has remote branch offices connected via an MPLS network, they may choose to deploy SD-WAN to enhance application performance and reduce costs.

SD-WAN's ability to dynamically route traffic based on business policies and application requirements can optimize the user experience and improve operational efficiency. As mentioned, it can integrate various types of connectivity, such as broadband internet, MPLS and cellular connections, allowing businesses to leverage the most appropriate connection based on availability, cost and performance. By combining the resilience of MPLS with SD-WAN's flexibility, intelligence and cost-effectiveness, businesses can build an optimized hybrid network infrastructure that aligns with their evolving requirements and objectives.

MPLS, SD-WAN or both? Making the decision

When evaluating MPLS, SD-WAN or a combination of both, it's essential to consider various factors to determine the best fit for your business. Start by assessing your network’s requirements and priorities. As mentioned, MPLS is often the go-to choice for its reliability, security and strong bandwidth performance; adding SD-WAN can significantly enhance your network. It offers greater flexibility, cost-effectiveness and adaptability to evolving network needs, making it an excellent complement to an MPLS network.

For organizations with multiple locations, tight budgets or a need for easy scalability, combining SD-WAN with MPLS can be particularly beneficial. SD-WAN’s simplified management and centralized control make it easier to handle complex network infrastructures. Additionally, the existing infrastructure is a key factor to consider in the decision-making process. SD-WAN can also act as the catalyst for your digital transformation to help you thrive in a digital world.

A hybrid approach could also benefit organizations needing both reliability and performance for critical applications and flexibility for less important traffic. MPLS can be used for mission-critical applications requiring low latency and high availability, while SD-WAN handles less sensitive traffic like internet browsing and data transfers cost-effectively. Additionally, combining MPLS with SD-WAN in a redundant setup can help ensure continuous connectivity and minimizes downtime, supporting 24/7 operations.

Choosing the right approach that suits your business needs depends on your specific goals and priorities. TELUS Business can help align your business strategy with the right networking technology to deliver improved performance, security, scalability, agility and simplified management.

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