MPLS (Multiprotocol Label Switching) networks have played a crucial role in providing high-quality point-to-point connections for a long time. However, as the demand for internet connectivity and data requirements continues to grow in enterprises, the expensive costs and performance limitations of MPLS have created an urgent need to explore more cost-effective solutions. This article will explore how global SD-WAN can be leveraged to reduce MPLS costs.

Limitations of MPLS

MPLS networks operate by establishing dedicated connections at the second layer, utilizing second-layer labels attached to packets for transmission. While MPLS offers more reliable point-to-point connections compared to IP address-based solutions at the third layer, its performance limitations become evident when branch offices need to access the internet, resulting in relatively slower speeds. The expensive nature of MPLS services poses another challenge for enterprises, acting as a constraint to their development in the face of increased data usage and cloud connectivity demands.

SD-WAN as a Solution

To address the issues of MPLS costs and performance, enterprises can consider adopting SD-WAN technology. SD-WAN (Software-Defined Wide Area Network) intelligently combines the quality of MPLS network with the cost-effectiveness of third-layer bandwidth, providing businesses with more flexible options. By aggregating two or more internet connections, enterprises can significantly reduce MPLS costs while delivering the same or even better performance without the need to upgrade expensive MPLS services.

Technical Advantages of SD-WAN

SD-WAN technology allows enterprises to flexibly manage application flows and intelligently route around network issues, thereby enhancing the quality of WAN links. By deploying SD-WAN devices in offices, businesses can economically increase bandwidth and, in some cases, completely replace MPLS networks. The flexibility of SD-WAN solutions can improve the reliability of WAN links beyond the service level agreements (SLA) of individual MPLS connections. For instance, combining multiple WAN links can significantly enhance reliability, surpassing the level of a single MPLS connection.

Therefore, when enterprises are grappling with the high costs of MPLS, introducing SD-WAN functionality into their networks becomes a viable solution. This not only injects cost-effective bandwidth resources into the enterprise but also enhances the quality and reliability of network connections without compromising service levels.

SD-WAN is an intelligent and practical solution, enabling enterprises to better adapt to the challenges of future network development and maintain a competitive edge. Feel free to contact Ogcloud; we can customize the most cost-effective SD-WAN services based on your requirements!