SD-WAN: Advantages and Disadvantages for Enterprise Networks

Plusnet GmbH provides an analysis of SD-WAN (Software-Defined Wide Area Network) technology, which is increasingly being adopted for connecting enterprise networks. SD-WAN enables secure connectivity across multiple locations by leveraging various network access technologies, eliminating the need for separate, costly leased lines.

The core of the technology lies in shifting network control and optimization to software. This simplifies the management of multi-site enterprise networks, enhances performance, and can reduce operational costs. SD-WAN is particularly suitable for companies with numerous sites in different countries or those looking to offload traffic from fixed MPLS links due to growing network demands, such as video conferencing and cloud applications. It also offers a solution for efficient and secure network access for remote workers.

Compared to traditional MPLS (Multiprotocol Label Switching) VPNs, which offer guaranteed bandwidth and end-to-end Quality of Service (QoS), SD-WAN is more flexible and cost-effective. While SD-WAN may not provide the same end-to-end QoS as MPLS, it is capable of prioritizing individual applications locally as needed. Furthermore, the setup and maintenance of SD-WAN are often simpler than traditional VPN solutions, utilizing a "plug and play" principle.

Key advantages of SD-WAN include reduced IT workload through an "as-a-service" model, network scalability for rapid addition or removal of new locations, and high flexibility across various environments, even as an add-on to an MPLS VPN. Disadvantages involve potential fluctuations in bandwidth depending on the available connection and that end-to-end encryption is not as straightforward to implement as in MPLS VPNs. The technology is also not fully standardized, which may necessitate using hardware from the same vendor. Plusnet highlights the use of market leader Juniper in its customer solutions.

According to Plusnet, medium and large enterprises are showing increasing interest in SD-WAN solutions. The company has implemented solutions for approximately 500 locations for a major German bank.