MPLS vs SD WAN. Both offer powerful ways to connect multiple sites, improve performance and keep data flowing securely. When it comes to business internet solutions, these two technologies often lead the conversation. They both also work in very different ways. In this guide, we will break down the key differences, advantages and best use scenarios to help you decide which is right for your organisation.

What is MPLS?

Before taking a look into MPLS vs SD-WAN, let’s first dive into what they both mean. MPLS stands for Multiprotocol Label Switching. It’s a method of directing data through a network using simple labels instead of relying on lengthy network addresses. Each label tells the network the exact path the data should follow, rather than letting it figure it out at every step. This makes for a faster and more predictable journey for your information.

Instead of using traditional IP addresses to decide where data goes, MPLS uses labels to move traffic along the most efficient route across private wide area networks (WANs). It’s both scalable and adaptable, which means it works with a variety of different network protocols. Every packet of data gets a label that decides its exact route. This helps to improve speed, reduce delays and keep performance consistent.

You’ll often find MPLS as a business internet solutions for large businesses that need to link offices spread across the country or even globally. This is especially true when connecting to centralised applications or data centres. As far as business internet solutions for small businesses are concerned though, the cost and complexity might outweigh the benefits, making other network options more suitable.

Different types of MPLS networks

Layer 2 point-to-point: Ideal if you need high bandwidth connection between a small number of locations and to keep costs to a minimum.
Layer 2 Virtual Private LAN Services (VPLS): Combines with Ethernet services to extend its benefits to both end users and carriers across a wide area.
Layer 3 IP/VPN: Designed for large organisations with multiple sites across vast geographical areas. A good choice for businesses undergoing mergers, expansions, or transitions from older network technologies.

What is SD WAN?

SD WAN stands for Software-Defined Wide Area Network. It’s a smarter, more flexible way to connect multiple sites like branch offices, data centres, cloud services, and remote devices. It links these locations using a mix of connectivity options, from dedicated circuits to standard broadband, 4G/5G mobile data, and the public internet.

Unlike traditional MPLS, SD WAN isn’t locked into fixed and predefined routes. Instead, it uses software to direct traffic dynamically, prioritising important business applications and choosing the best available connection at any given moment. This could mean routing a video call over a high-speed fibre line while sending less urgent data through a more cost effective internet link.

SD WAN can even combine with MPLS if needed. The result is a WAN that’s easier to manage, more adaptable to changing demands, and often cheaper to run. For many organisations, this flexibility and cost efficiency are the main reasons they’re moving away from traditional, MPLS-only setups.

Different types of WAN networks

Leased lines: A leased line is a dedicated, fixed bandwidth connection between two locations. This offers guaranteed performance and reliability as the line is not shared with anyone else. This provides ideal businesses internet solutions for medium-sized businesses that need consistent speeds and low latency for critical applications. This can include video conferencing, VoIP, or large file transfers.
Broadband WAN: This uses standard broadband connections such as FTTP or FTTC to provide a cost effective way to connect multiple sites. They’re often more affordable, but performance can vary depending on the provider, the technology and the level of contention on the line.
Wireless WAN (WWAN): Uses cellular technologies like 4G and 5G to provide connectivity across large areas without relying on fixed infrastructure. They’re well-suited for remote locations, temporary sites, or as a backup connection in case of primary connection failure.
Satellite WAN: Satellite connections deliver WAN access to sites beyond the reach of terrestrial networks. They offer global coverage but typically come with higher latency, making them best suited for locations where no other WAN options are viable.

SD WAN vs MPLS advantages

Let’s take a look at some of the ways in which SD WAN wins when it comes to SD-WAN vs MPLS advantages.

No fixed bandwidth ceiling

MPLS connections are provisioned with a set capacity. Increasing that capacity often requires reconfiguration and extra cost. On the other hand, SD WAN can boost available bandwidth on demand by combining multiple links and automatically using the fastest available connections.

Freedom to choose your ISP

With MPLS, you’re generally tied to specific service providers because the circuits are physically provisioned at each site. SD WAN runs over the public internet, meaning it can work with virtually any ISP. Many organisations still opt for a managed SD WAN service from a single vendor, but they have more flexibility if they want to change providers.

Greater routing flexibility

SD WAN can work with a mix of connections, including broadband, leased lines, and 4G/5G. It intelligently routes traffic between them and can also switch to a backup link instantly if the primary one fails. MPLS typically relies on dedicated private circuits from the provider, offering less choice.

Cloud friendly by design

Connecting to cloud services over MPLS can be complicated and often requires a dedicated link from the MPLS provider to the cloud provider’s network. SD WAN makes this process much simpler, offering multiple connection paths and the ability to integrate security directly into cloud traffic flows.

Security capabilities

With SD WAN, features such as next generation firewalls, encryption, and secure access service edge (SASE) can be built directly into the network. MPLS doesn’t natively encrypt traffic. So if you want that protection, you have to add it via a separate VPN.

A future ready investment

Moving to an SD WAN architecture not only improves current performance but also lays the groundwork for a full SASE deployment. This is fast becoming the standard for secure, cloud based networking. MPLS, with its reliance on fixed and physical links, simply can’t match this adaptability. As more businesses move workloads into the cloud and support remote teams, the cost of scaling MPLS will likely continue to rise. This makes the flexibility and scalability of SD WAN an increasingly attractive choice.

MPLS vs SD WAN advantages

Now let’s see where MPLS top trumps SD WAN in the MPLS vs SD-WAN benefits comparison.

Precise control over packet paths

On the public internet, data packets can take different routes from one moment to the next, depending on how routers direct them at the time. In contrast, MPLS follows fixed, manually configured routes. This ensures that packets always travel along the same predefined path between specific routers and networks. This predictability can be valuable for applications that demand consistent performance. SD WAN, by comparison, adapts dynamically to changing conditions. This means routes can vary and occasional packet losses can occur.

Potentially higher reliability

MPLS traffic is often prioritised across a provider’s backbone network, giving it an advantage over standard internet traffic. Many MPLS services also come with quality-of-service (QoS) guarantees, offering assured levels of latency, jitter and packet delivery. SD WAN typically relies on best effort internet services, which may sometimes experience delays or packet loss. That said, most modern SD WAN solutions can mitigate this by automatically directing traffic away from congested or underperforming connections.

Does SD WAN replace MPLS?

MPLS is still a valuable and dependable option for many organisations connecting their networks. In some sectors, like healthcare for example, there may be strict compliance or security requirements that make MPLS the preferred choice. This is particularly true when it comes to keeping sensitive data and applications off the public internet.

With that said, the adoption of SD WAN is growing quickly. Many companies even opt for taking a hybrid approach. They use MPLS for workloads that demand guaranteed performance. SD WAN is deployed for greater flexibility, agility and cloud integration in other parts of the business.

There’s also a practical reason for this combination. Moving away from established MPLS infrastructure takes time, planning and resources. By introducing SD WAN gradually alongside MPLS, organisations can modernise their networks at a pace that suits their operational needs.

MPLS vs SD WAN: Find out which is the right choice for you here at Infinitel

Ultimately, the choice between MPLS and SD WAN will depend on your particular needs and applications. Some key considerations include:

cost
performance
security
scalability
cloud and remote work

The team here at Infinitel are more than happy to talk you through this and find the right option for you. So please do not hesitate to contact us using our contact form, or call 0333 996 0029.

We cover more on this subject in our other blog post: MPLS Meaning | A Guide to Multiprotocol Label Switching.