The SD-WAN vs MPLS debate has been going on for years, and the answer hasn't changed: it depends. Both technologies solve different problems, and many organizations use both.
Understanding MPLS
MPLS (Multi-Protocol Label Switching) has been the gold standard for enterprise WAN connectivity for decades. It's a private network service provided by carriers that offers guaranteed performance.
MPLS Advantages
- Guaranteed SLAs for latency, jitter, packet loss
- Private connectivity—never touches public internet
- Built-in QoS managed by carrier
- Carrier-managed with proactive monitoring
SD-WAN Advantages
- Combine MPLS, broadband, LTE and more
- Application-aware intelligent routing
- Centralized management dashboard
- 30-50% cost savings potential
The Real Comparison
Cost
SD-WAN typically costs 30-50% less than equivalent MPLS bandwidth. The savings come from using commodity internet connections instead of premium private circuits.
Performance
MPLS wins on raw performance guarantees. SD-WAN can match or exceed MPLS performance when conditions are good, but internet connections are inherently variable.
Flexibility
SD-WAN wins hands down. New sites can be brought online in days instead of months. Bandwidth changes are instant. You're not locked to a single carrier.
Common Scenarios
Our Recommendation
For most Australian businesses, a hybrid approach makes the most sense: Keep MPLS for critical sites and applications, use SD-WAN with internet for less critical sites.
Best for MPLS:
- Real-time applications requiring guaranteed performance (VoIP, video conferencing, trading systems)
- Regulatory requirements mandating private connectivity (healthcare, finance, government sectors)
- Locations where quality internet isn't available or reliable enough for business-critical traffic
- Organizations with existing MPLS contracts and stable, predictable traffic patterns
Best for SD-WAN:
- Organizations with many branch locations (10+ sites) where MPLS costs become prohibitive
- Businesses adopting cloud applications (Office 365, Salesforce, AWS) that benefit from direct internet access
- Companies prioritizing cost savings and flexibility over guaranteed performance SLAs
- Organizations needing rapid site deployment (days instead of months) or frequent bandwidth changes
- Businesses wanting centralized management and visibility across all branch networks
The Bottom Line
The "SD-WAN kills MPLS" narrative is overblown. Smart organizations use both where appropriate, saving money where they can while maintaining performance where they must.