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Why SD-WAN Could Be a Great Networking Solution for Your Business

October 28, 2022

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Network transformation has been one of the most important innovations in enterprise infrastructure in recent years. As companies increasingly embrace remote and hybrid work models, SD-WAN solutions have played a major role in the digitalization of businesses. SD-WAN is a recognized technology that provides organizations with high efficiency in protecting business continuity and security by allowing users to connect to the network and to use applications from different locations.

This article will help you better understand the benefits of SD-WAN, and the ways in which this networking solution could improve your business processes and outcomes. 

SD-WAN Explained

SD-WAN refers to a software-defined approach to managing a wide area network (WAN). It is a virtualized technology that connects and extends enterprise networks over large geographical areas. WANs use connections such as wireless, multiprotocol label switching (MPL), broadband, virtual private networks (VPNs), and the Internet to give users in remote offices access to corporate applications, services, and resources. This allows employees to work efficiently and stay connected regardless of their location. SD-WAN monitors the performance of these WAN connections, and manages traffic to maintain high speeds and connectivity.

SD-WAN vs. MPL

Multiprotocol label switching (MPL) is a networking technology that routes traffic over the shortest path based on “labels” (instead of network addresses) to enable forwarding over private WANs.

In the context of increasing demand for mobility services and the growing importance of minimizing operating costs (OPEX), SD-WAN enables businesses to replace more expensive WAN connections. Against the backdrop of growing bandwidth demands and limited network budgets, SD-WAN resolves the cost and network scalability issues that MPL brings, without compromising the quality of service (QoS). 

Unlike MPLs, there are no bandwidth restrictions with SD-WAN, and upgrades can be made by adding new links—with no requirement for changing the infrastructure or the network. It is also easier to maintain control over SD-WAN when designing, deploying, and managing new devices—which is essential when it comes to responding quickly to changing business needs. 

SD-WAN vs. VPN

A Virtual Private Network (VPN) extends a private network over a public one, allowing users to send and receive data over shared or public networks as if their devices were directly connected to the private network. The benefits of VPN solutions include increased security, functionality, and management of the private network—which makes them a cost-effective solution for businesses that support remote working.

SD-WAN and VPN are designed to achieve the same objective, but in very different ways. Both solutions provide encrypted network connection with the option to add security features. However, VPNs cannot compete with SD-WAN in terms of cost, performance, or reliability. When it comes to a large remote team, the complexity and latency of VPN can outweigh its cost benefits. 

SD-WAN provides optimized performance features such as QoS and application routing, and leverages the cloud infrastructure in ways that are not possible with VPN. While VPN relies on the public Internet for speed and bandwidth, SD-WAN offers enterprises the convenience of service-level agreements (SLAs) for performance. It allows companies to create their own internal SLAs, based on required business drivers, such as mission critical applications.

The Key Benefits of SD-WAN

With the switch from working in the office to working almost anywhere, it’s critical to know that your team can work as securely in a remote environment as they do in the office. SD-WAN provides significant benefits to geographically distributed organizations, including higher security, improved performance, and a reduction in operating costs.

While SD-WAN is mainly a network solution, secure SD-WAN offerings include additional built-in security features which you should not neglect—such as next-generation firewall (NGFW) inspection, prevention-focused security, flexible deployment options, unified security monitoring (USM), and policy enforcement. 

Another important benefit of implementing an SD-WAN solution is OPEX reduction. SD-WANs are a great way to supplement or substitute expensive networking technologies like MPLs. Cutting back on unnecessary operating expenses can have a significant impact on your organization by increasing net profit, and allowing you to use these funds for other business operations.

Market Trends and a Look Into the Near Future

As businesses are looking for advanced networking solutions to improve flexibility and security, the SD-WAN market is expected to flourish. Reports suggest that the market will grow from $3.4 billion in 2022 to $53.8 billion in 2032.

Furthermore, a study by Allied Market Research shows that the increasing need for companies to simplify network management will positively impact the SD-WAN market. Increased business agility and responsiveness, as well as accelerated migration to cloud-based applications, will most likely create tremendous demand for SD-WAN solutions and further drive the market.

Especially in a post-pandemic world, SD-WAN adoption trends are influenced by companies that rely heavily on remote working. The secure access provided by SD-WAN eliminates the need to connect to a VPN, and makes it easier for remote workers to securely connect and stay connected. Another important factor contributing to the growth of the SD-WAN market is the emergence of new start-ups.

Conclusion

As a modern technology that increases network security, reduces OPEX costs, improves business performance, and enables companies to better manage their IT infrastructures, SD-WAN could be a great networking solution for your business going forward.