Complete Guide to Differences Between SD WAN and MPLS

Updated: January 20, 2025

Difference SD-WAN and MPLS

SD-WAN and MPLS are both popular networking technologies, each offering distinct advantages. While MPLS has been trusted for secure, private connections, SD-WAN provides flexibility, scalability, and cost savings, especially for cloud-based businesses. If you’re struggling with high networking costs and scalability limitations, SD-WAN might be the solution you’re looking for. With so many factors to consider, which one is right for your needs? Let’s explore the differences to help you make an informed decision.

Table of Content

Difference SD-WAN and MPLS
What Is SD-WAN and MPLS?
What is the Difference Between SD-WAN and MPLS?
Conclusion about SD WAN Versus MPLS
FAQS - SD WAN vs MPLS

What Is SD-WAN and MPLS?

Software-Defined Wide Area Networks (SD-WANs) offer a smart, software-driven approach to managing and optimizing internet connectivity. On the other hand, MPLS (Multiprotocol Label Switching) is a tried-and-true technology designed for secure and dependable data transmission across private networks. Both serve different networking needs depending on business requirements.

What is the Difference Between SD-WAN and MPLS?

The key difference between SD-WAN and MPLS lies in flexibility and cost. SD-WAN uses the internet for dynamic, scalable connections, making it more affordable. MPLS, on the other hand, provides secure and reliable connections over private networks but at a higher cost.

SD WAN	MPLS
Software-defined solution for managing wide-area networks.	A traditional technology for private, reliable network connections.
Cloud-based apps like Office 365, and Zoom.	Secure financial transactions in banking networks.
Cloud-based SD-WAN, On-premises SD-WAN.	Layer 2 VPN, Layer 3 MPLS VPN.
Uses multiple internet links for flexibility.	Ensures consistent performance with private circuits.
Relies on encryption for data protection.	Offers inherent security through private network paths.
Affordable due to public internet usage.	Expensive because of dedicated private lines.
Easily scalable for growing businesses.	Limited scalability and costly upgrades.
Quick and easy to set up remotely.	Time-consuming with physical line installations.
Potential latency in public internet environments.	Low latency due to dedicated bandwidth.
Designed for cloud and hybrid environments.	Limited cloud adaptability.
Less reliable on public internet links.	Highly reliable for mission-critical applications.
Centralized control via software.	Requires manual configuration and maintenance.
Intelligent traffic routing based on app needs.	Fixed traffic paths with limited flexibility.
Ideal for remote work and cloud apps.	Best for banking or healthcare requiring high security.
Cost-effective and scalable for global teams.	Secure and consistent performance for sensitive data.
Public internet dependency can cause downtime.	High cost and lack of flexibility.
Uses software for real-time network adjustments.	Relies on MPLS labels to direct traffic paths.
Maximizes bandwidth with multiple links.	Fixed bandwidth allocation with low utilization flexibility.
Wide range of vendor and cloud support.	Requires specialized expertise for setup and maintenance.
Growing due to cloud-first strategies.	Declining as businesses shift to cloud-based networking.

Conclusion about SD WAN Versus MPLS

SD-WAN and MPLS are both vital networking solutions, each with distinct advantages and limitations. SD-WAN offers flexibility, cost-efficiency, and ease of scaling, making it ideal for cloud-focused businesses, while MPLS ensures security and reliability, better suited for industries requiring high-priority, private connections. When choosing between the two, consider factors like cost, scalability, and your business’s specific needs. Ready to optimize your network? Assess your requirements and explore which solution aligns best with your goals.

FAQS – SD WAN vs MPLS

Is SD-WAN a worthwhile investment for businesses?

Yes, SD-WAN is a worthwhile investment for businesses seeking flexibility, cost savings, and easy scalability, especially for cloud-based operations.

How does the cost of SD-WAN compare to MPLS?

Because SD-WAN makes use of public internet connections rather than the expensive private MPLS lines, it is typically more affordable than MPLS.

MPLS vs. SD-WAN: Which network solution is better for your business?

SD-WAN is ideal for businesses needing flexibility, cost savings, and cloud connectivity, while MPLS is better suited for industries requiring high security and reliable performance.

SD-WAN vs. VPN: What’s the difference and which is right for you?

SD-WAN optimizes entire networks with centralized control and cloud support, while a VPN focuses on secure point-to-point connections; SD-WAN is more suitable for larger, dynamic networks.