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SD WAN vs MPLS

Created by Himanshu Sharma in Articles 7 Apr 2025
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«Why Cisco SD-WAN? Over Traditional WAN

How do Software-Defined Wide Area Network (SD-WAN) and Multiprotocol Label Switching (MPLS) differ, and which one is better? When comparing SD-WAN vs MPLS, it's important to understand their differences to grasp their strengths in networking requirements.

SD-WAN provides a flexible and cost-effective approach by utilizing various transport technologies, enhancing performance and redundancy. In contrast, MPLS offers dedicated, reliable connections ideal for handling complex network requirements.

In this article, we have provided a detailed comparison of SD-WAN vs MPLS. Reading this article will help you learn the key differences between SD-WAN and MPLS, like their costs, benefits, and drawbacks.

Further, if you are interested in learning both technologies, enrolling in our online networking courses can help you master SD-WAN and MPLS, allowing you to use them as per your requirements.

What is SD-WAN?

SD-WAN stands for Software-Defined Wide Area Network. It is a modern networking technology that enhances how organizations connect and manage their wide area networks.

Unlike traditional WANs, which rely heavily on hardware and fixed routing protocols, SD-WAN uses software-defined networking principles to create a virtualized overlay that abstracts the underlying network infrastructure.


Also, Read the Detailed Articles on: 
What is SD-WAN?
SD-WAN Architecture

What is MPLS?

MPLS stands for Multi-Protocol Label Switching. It is a widely used networking technology that enhances the speed and efficiency of data transmission across networks.

Unlike traditional protocols that rely on source and destination addresses to route traffic, MPLS uses predetermined labels to direct data packets along established paths.

This method significantly reduces the complexity of routing decisions at each node, allowing for faster data forwarding.

Difference Between SD-WAN and MPLS

The table below summarizes the important SD WAN and MPLS comparison on different parameters:


Feature SD-WAN MPLS
Cost Lower cost utilizes existing internet connections Higher cost due to dedicated infrastructure
Flexibility Highly flexible, easily scalable, and adaptable Rigid, difficult to change or scale
Traffic Management Intelligent routing based on real-time conditions Fixed routing paths with predetermined routes
Performance Improved multipoint connectivity, variable performance Reliable performance with guaranteed bandwidth
Quality of Service Real-time traffic monitoring and prioritization Prioritizes essential traffic, QoS guarantees
Security End-to-end encryption and additional security features are available Generally secure but requires additional security measures
Management Centralized management through a single dashboard Managed by ISP; requires skilled resources for integration
Application Support Optimized for cloud-based applications and SaaS Ideal for traditional applications like VoIP and video conferencing
Deployment Time Quick deployment and easy setup Longer deployment times due to infrastructure requirements

SD-WAN vs MPLS Costs Analysis 
The cost of SD-WAN can range from $100 to $300 per site per month, whereas MPLS circuits can be significantly more expensive, often ranging from $300 to $1,000 per site per month

Is SD-WAN Better Than MPLS?

Yes, SD-WAN performs better than MPLS in various aspects. We have provided a list of cases where you should prioritize using SD-WAN over MPLS.

If you want to reduce costs, use SD-WAN as it significantly reduces expenses by leveraging existing internet connections rather than relying on the expensive, dedicated lines required by MPLS.

If you need a flexible and scalable network, choose SD-WAN. It allows for easy scaling and adaptation to changing needs, unlike the rigid structure of MPLS.

For better application performance, opt for SD-WAN. It optimizes traffic routing based on real-time conditions, enhancing performance compared to MPLS’s fixed paths.

If you require better network insights, go with SD-WAN. It provides enhanced visibility and control, enabling quicker issue resolution than MPLS.

To reduce latency and improve user experience, select SD-WAN. It enables direct access to cloud applications, unlike MPLS, which often requires backhauling traffic through a central data center.


Is MPLS Better Than SD-WAN?

After discussing the benefits of using SD-WAN over MPLS, we will discuss the benefits of MPLS over SD-WAN. There are many aspects where MPLS performs better than SD-WAN. You should choose MPLS for:

If you need enhanced security, choose MPLS. It provides a private network that is inherently secure, offering better protection for sensitive data compared to SD-WAN's reliance on public internet connections.

For superior performance in real-time applications like voice and video, opt for MPLS. It maintains quality through dedicated bandwidth and prioritization.

If consistent performance and reliability are crucial, go with MPLS. It offers service level agreements (SLAs) that ensure these qualities, which are vital for mission-critical applications.

To simplify operations with expert support, select MPLS. These networks are managed by service providers, providing a level of expertise that can ease management for organizations.

SD-WAN vs MPLS, Which One is Better?

SD-WAN offers superior flexibility, cost-efficiency, and scalability, making it ideal for businesses seeking to optimize network performance while managing expenses. 

On the other hand, MPLS provides guaranteed performance and security, making it suitable for mission-critical applications that require consistent bandwidth and low latency.

 A hybrid approach that combines both technologies can provide the best of both worlds—leveraging MPLS's reliability alongside SD-WAN's cost savings and flexibility. 

How to Become an SD-WAN Engineer»
Himanshu Sharma

Himanshu Sharma is a highly professional Network data engineer and IT trainer. He is working in IT industry since more than 10 years. He has worked with top global companies like IBM, Wipro, TCS, HCL, etc. His experience in these top companies makes him one of the most successful network engineer in industry. Himanshu has done wide range of ...

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FAQ

MPLS is a hardware-based, dedicated network technology ensuring reliability and performance, while SD-WAN is a flexible, software-defined solution utilizing multiple connection types for cost efficiency and improved performance
Disadvantages include potential slow performance, lack of on-site security, complexity requiring skilled IT staff for management, higher costs than anticipated, and limited benefits only to the WAN without full network visibility
The purpose of MPLS (Multiprotocol Label Switching) is to enhance network speed and control traffic flow by directing data through predetermined paths using labels, rather than relying on complex routing table lookups at each node
MPLS has limitations including lack of scalability, high costs for adding new nodes, dependency on a single carrier, complexity in management, and potential performance issues with real-time applications compared to newer technologies like SD-WAN

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