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SD-WAN vs Traditional WAN: Which Is Better for Your Business?

  • 21

  • 17 Apr 2025

  • 4 minutes

SD-WAN vs Traditional WAN: Which Is Better for Your Business?

Wide Area Networks (WAN) have been the foundation of enterprise connectivity for years, enabling organizations to connect remote users, branch offices, and data centers, with WAN solutions based mainly on MPLS being the norm. In today’s digital world, with businesses shifting to cloud-based models and performance driven networks, SD-WAN has come out as the first pick for enterprises.

What is WAN?

Wide Area Network (WAN) is a data network that covers vast geographical areas, linking numerous sites like branch offices, head offices, and data centers. Conventional WAN solutions have mostly been based on MPLS to provide guaranteed, private connectivity. Though dependable, MPLS-based WANs incur exorbitant costs, provide limited flexibility, and involve difficult management.

The Evolution of WAN

In the 2010s, SD-WAN emerged as a means to improve the manner in which branches could connect to the corporate WAN as it centralizes and automates tunnel configuration between branches. It allows traffic load balancing over multiple connections and policy-based bandwidth allocation. Additionally, SD-WAN facilitates the use of multiple connection types, including MPLS, wired internet, and cellular data, from various providers.

With the maturity of the technology and competition in the market, SD-WAN is now an attractive choice for connecting remote users and branches to corporate assets. Small-office SD-WAN appliances and soft clients can provide a viable alternative for locations requiring access to critical systems and large data files. With less overhead, improved reliability, and better performance than VPNs, SD-WAN provides full network-level access, as opposed to Zero Trust Network Access (ZTNA) gateways.

Traditional WAN: Reliable but Costly and Rigid

Traditional WAN solutions leverage MPLS to provide a dedicated, high-quality network connection. While MPLS is known for its reliability, it comes with several challenges:

  • Limited Cloud Support – Traditional WAN routes traffic through centralized data centers, which can slow down access to cloud applications.
  • Complex Management – Scaling and managing MPLS networks requires significant IT resources and know- how.
  • Latency Concerns – Backhauling internet-bound traffic through a central data center can lead to higher latency and decreased performance.
  • High Costs – Dedicated MPLS links are expensive, particularly for businesses with multiple locations.

The SD-WAN Advantage

Software-Defined Wide Area Network (SD-WAN) offers a modernised approach to enterprise networking by leveraging multiple connectivity options (broadband, LTE, and MPLS) and intelligent traffic routing. Here’s how SD-WAN transforms business connectivity:

  • Optimised Performance – Intelligent load balancing routes traffic based on real-time network conditions, minimizing latency.
  • Cloud-Ready – Direct internet access to SaaS and IaaS platforms eliminates unnecessary backhauling.
  • Automated Failover – Provides uninterrupted connectivity by automatically switching to the best available link in case of failures.
  • Simplified Management – Centralized, cloud-based network control provides increased visibility, automation, and ease of deployment.
  • Robust Security – Built-in security features, including firewalls, IDS/IPS, and web filtering, provide comprehensive protection to enterprise data.
  • Cost Savings – Reduces reliance on expensive MPLS circuits by utilizing cost-effective broadband and LTE links.

Why Choose ACT Enterprise’s SD-WAN?

ACT Enterprise’s Managed SD-WAN solution is designed to help businesses optimize network performance, improve security, and streamline operations. Key benefits include:

  1. Uninterrupted and reliable Connectivity Self-healing networks with automatic failover and intelligent load balancing minimize disruptions and optimize bandwidth for consistent performance.
  2. Advanced Security Measures Integrated security features include stateful firewall, intrusion detection, web filtering, and deep packet inspection to protect against cyber threats.
  3. Simplified Network Management Key features like Cloud-based centralized control, zero-touch provisioning, and advanced analytics and diagnostics provide network visibility and reduce operational overhead.
  4. Cost-Effective and Scalable Reduction of reliability on costly MPLS results in a cost-effective as well as scalable solution as it supports multi-location network and flexible connectivity options including broadband, MPLS, VPN, and LTE

Which Solution is Right for Your Business?

The choice between SD-WAN and Traditional WAN depends on business priorities. If your organization relies on cloud applications, requires cost-efficient scalability, and seeks high network agility, SD-WAN is the ideal choice. If your enterprise operates in a highly regulated sector with strict compliance mandates and has existing MPLS investments, a hybrid model combining SD-WAN with MPLS could be beneficial.

Industries Benefiting from SD-WAN

 

  • Co-Working Spaces – Redundant WAN links, failover, and secure connectivity.
  • Financial Services – Secure, high-availability networking integrated with cloud services.
  • Retail – Point-of-sale (PoS) connectivity, inventory management, and in-store Wi-Fi.
  • SMEs – Reliable, redundant network connectivity with essential security features.
  • Healthcare – Enables seamless telemedicine services and cloud-based health applications.
  • IT/ITES – Supports complex multi-location networking with application-aware routing.

 

The Future of Business Networking

For enterprises looking to modernize their network infrastructure, SD-WAN presents an opportunity to enhance performance, security, and cost efficiency. With ACT Enterprise’s Managed SD-WAN, businesses can experience seamless, scalable, and future-ready connectivity tailored to evolving demands.

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