SD-WAN vs MPLS – COST COMPARISON

With SD-WAN technology quickly gaining interest among multinational companies, and their individuals responsible for enterprise network infrastructure, one of the most common questions is: Is SD-WAN pricing better than MPLS?

Depending on who is asking, this question can mean several things; One is: Will SD-WAN technology save our company money?

Yes, SD-WAN cost is cheaper than MPLS. Compared to what your company pays today, you need to use SD-WAN technology for cost savings.

EXAMPLE:
“X Company” has an MPLS network. In their corporate headquarters, there is 100M. Fiber MPLS connector costing $ 1000 / month. They also have 1G fiber internet access (DIA), a headquarters chain (costing $ 2,000 / month) that is shared by all locations for public internet access over the MPLS network. All protection, content filtering and more are centralized in the headquarters. The total cost of their headquarters (MPLS + Internet) is $ 3,000 / month.

Each of the 20 “X Company’s” remote sites contains 10M. MPLS circuit costing $ 600 / month. / Site. The total cost of MPLS in remote locations is $ 12,000 / month.

The total cost of “X Company’s” (current) MPLS and Internet circuits is $ 15,000 / month.

The company has taken advantage of the fact that their MPLS provides their real-time applications locally (ie. voice, video, remote desktop, etc.), but “X Company” understands this (when they start migrating some of their applications to the cloud), remote sites need more public internet bandwidth. For their IT team, it looks like 1G public internet circuit (headquarters) is enough, but remote locations are troublesome with their small MPLS circuits. Their IT team also knows that increased MPLS bandwidth in remote locations will also generate $ 100 million. MPLS connector (at headquarters) if the bottle-neck is left with only 100 million.

The IT team is exploring all of its options: increasing MPLS bandwidth at headquarters or moving to SD-WAN. Their choices are:

Option 1: Increase MPLS throughput at headquarters

  • 500M MPLS at HQ (upgrade): $2,000/month
  • 20M MPLS at each remote site (upgrade): $700/month x 20 sites = $14,000/month
  • 1G Public Internet Access at HQ (existing): $2,000/month
  • Total Price: $18,000/month

Option 2: Switch to SD-WAN

  • 1G DIA Public Internet Access at HQ (existing): $2,000/month
  • 1G Broadband public Internet access at HQ (new): $400/month
  • 300M x 20M (primary) Broadband public Internet access at each remote site (new): $250/month x 20 sites = $5,000/month
  • Secondary 100Mx20M Broadband public Internet access at each remote site (new): $100/month x 20 sites = $2,000/month
  • Cloud-Enabled SD-WAN with built-in UTM Firewall: $500/month at HQ; $250/month/remote site. Total cost for SD-WAN = $4,400
  • Total Price $14,900/month

As you can see, migrating to SD-WAN offers significant cost savings (approximately $ 3,000 / month) compared to increasing MPLS bandwidth.

This will give you much more savings and value in the future as your company moves more applications to the cloud and increases bandwidth and cloud-based QoS.

If you want to save money now, download our free e-book “SDWAN for Dummies” and get 40% off SD-WAN technology installation services.