What do enterprises need to achieve digital transformation?
Having the latest tech innovations is great, and certainly boasts its own benefits, but it’s the network itself that brings it all together. Without a resilient and reliable infrastructure driving this transformation, that seamless flow of information and data needed to succeed becomes disrupted. The need for a strong foundation is paramount.
This all seems straight forward, yet it all comes down to choosing the right network infrastructure. LAN, WAN, MPLS and SD-WAN are some of the choices that these digitally-minded enterprises have to choose from, but we’ll focus on the two latter options today. Between MPLS and SD-WAN, it’s a choice that has led to a debate on which of these options is best suited for the requirements of any modern business.
Before examining this ‘Great Enterprise Network Debate’ in further detail, it’s worth establishing the finer points behind each networking technology that’s taking to the podium for this unfolding debate.
MPLS: Tried and tested technology
Multiprotocol label switching (MPLS) directs data traffic from one node to the next via ‘labels’, which determine the shortest path data packets need to follow. This predetermined path is much faster compared to traditional IP routing, since data is sent directly rather than bounced from router to router.
Having been in use since the 1990s, MPLS has gained a reputation for its reliability and general performance, as it’s adept at rerouting traffic in case of node failure. Reducing both latency and packet loss gives users a smoother experience, and quality of service (QoS) capabilities means network traffic can be prioritised.
However, we are now entering an age where businesses are taking to the cloud in droves. Spending on cloud services is estimated to reach $679 billion in 2024, clearly showing its wider adoption. MPLS is only capable of point-to-point capabilities, making it unable to access cloud applications. Higher bandwidth also drives up costs, with deployment being a timely, resource-heavy process.
While reliable, MPLS cannot keep pace with hybrid working patterns and always-changing employee habits. This is where we can introduce SD-WAN, and what it brings to the networking debate.
SD-WAN: A game-changer for enterprises
A software-defined wide area network (SD-WAN) is seen by many as the next step in network infrastructure. Rather than rely on hardware, SD-WAN uses software to manage WAN performance and distribute network traffic across them. This virtual, centralised architecture can support multiple connections across other means of data transport, including broadband and even MPLS.
Managing WAN has always been an expensive venture, yet SD-WAN helps to ease that pressure by not just removing on-going hardware expenses, but also through centralisation and its ability to increase overall operational efficiencies. SD-WAN adoption can reduce costs by 84%, while simultaneously future-proofing businesses and adding additional layers of security with end-to-end segmentation and real-time access controls for each remote endpoint.
Yet being cloud-based doesn’t excuse SD-WAN from the persistent problems of jitter and packet loss, with implementation still potentially being a costly venture in a market filled with vendors that all offer differing services. Businesses must also be aware of potential security threats, including Denial of Service attacks, especially when SD-WAN has no on-site security functionality.
Considering the global average cost of a data breach in 2023 was $4.45 million, how much are businesses willing to risk when it comes to security?
The ‘Great Enterprise Network Debate’
With all of this in mind, this begs the ultimate question – is SD-WAN the way forward as a foundation to succeed, or is there still room for MPLS to make a difference? Do the enticing benefits of cost-efficiency and flexibility give SD-WAN an edge, or do ongoing concerns over security and robustness means traditional MPLS has life in it yet?
The ‘Great Enterprise Network Debate’ was what Gamma’s Managing Director David Macfarlane sought to explore during his Digital Boardroom session with CIO WaterCooler in March. David headed a session on what role SD-WAN can play in a modern environment, and whether it can meet the demands of complex multi-cloud architectures. By touching upon topics including SD-WAN’s financial implications and what factors are influencing the shift to SD-WAN, there were plenty of insights to be taken away from the day.
In fact, these insights were so good, it’s worth sharing them here!
Takeaway 1: The reasons behind the SD-WAN shift
The global network services market itself is expected to grow by 2.1% in 2024, driven by the wider adoption of SD-WAN. But what exactly are the motives behind this growing trend of SD-WAN reliance? We’ve already briefly covered the benefits behind SD-WAN, but it’s worth going into finer detail on what makes SD-WAN a compelling solution for network modernisation.
The perks of SD-WAN include:
- Cost efficiency, since SD-WAN uses IP addresses rather than dedicated lines to connect remote offices, while also delivering a higher ROI by utilising multiple connection types
- Enhanced productivity thanks to the removal of traditional network links and centralised data traffic control to eliminate congestion
- Greater reliability, with dynamic routing helping to determine the best path for data packets to take and make sure it reaches the right destination quickly
- Cloud connectivity that supports remote working and gives users the ability to access a secure, cloud-based private network
- Additional security features, including firewalls, data encryption, and real-time data analysis to uncover any unusual activity
- Seamless scalability as businesses grow in size and require greater capabilities to deal with increased data demand – especially if incorporating Internet of Things (IoT) devices that can integrate with SD-WAN
There’s no doubt that SD-WAN extends beyond the traditional benefits of cost-efficiency and better network management, and gives clarity behind the reasoning behind the leap to SD-WAN.
Takeaway 2: Mitigating the risks of a failed SD-WAN deployment
When implementing any new piece of technology, there’s no worse feeling than going to so much effort getting everything in place and then see all that time go to waste. SD-WAN is an emerging venture, so it’s unsurprising that businesses can find it confusing and end up failing to properly deploy it. To see all those benefits slip away can be extremely frustrating.
A staggering 93% of UK businesses have reported an IT skills gap within their workforce, turning to service providers to alleviate their concerns. However, inadequate vendor support only exacerbate the problem, with 36.7% of businesses citing this as a key challenge when implementing SD-WAN. If businesses are already experiencing ongoing issues, including the inability to integrate with existing systems, then it just leads to further problems.
At the end of the day, it all stems from poor planning. Without realistic expectations on the timescale of effective SD-WAN deployment and a clear alignment between SD-WAN and business needs, then SD-WAN fails to reach its potential. Indeed, it can put businesses at risk; a lack of configuration, for example, opens the potential of security breaches and data leakages that can damage reputation.
Mitigating these risks starts with careful planning and setting realistic goals on what SD-WAN implementation is for. With thorough training for staff and a more effective operational process, a successful SD-WAN deployment is on the cards. Of course, having a reliable managed network provider to assist in this transition is more than just a great help – it’s a necessity!
Takeaway 3: Is SD-WAN needed for effective transformation?
By optimising connectivity and improving overall performance, SD-WAN certainly enhances cloud transformation. Its host of benefits, including added security and cost-efficiency, all helps towards the goal of effective cloud transformation. As more businesses take to the cloud, an agile and secure network infrastructure becomes necessary rather than a ‘nice-to-have’.
Yet the need for SD-WAN relies on a variety of factors, including the exact nature of the network infrastructure and the application requirements. While the benefits of SD-WAN are numerous and desirable for any business, alternative network solutions may be better suited to a business and their specific needs. No point implementing a new piece of technology if it won’t be used to full effectiveness.
Remember when we mentioned how important planning was to a successful SD-WAN deployment? This would be the perfect time to think of whether SD-WAN is the first choice alongside MPLS. Key decision makers must evaluate key points, such as overall network traffic, future growth ambitions, and long-term ROI are just some aspects that must be taken into consideration.
Of course, a hybrid of the two may just be the best way forward when future-proofing network capabilities. But as already stated, it all comes down to what businesses require.
Takeaway 4: DIY vs MSP SD-WAN deployment
If going down an SD-WAN-driven journey to digital transformation, there’s another choice which has to be made – do it yourself, or choose a Managed Service Provider (MSP) to help with implementation. Once again, there are factors at play which influence whether DIY or MSP is the best course of action.
Large-scale enterprises with an IT team well-versed in networking makes DIY SD-WAN an attractive option. Certain IT professionals will have the security and connectivity expertise to know the best way to deploy, configure and maintain an operational network. If working in a specialised industry, such as healthcare, there will be requirements that must adhere to internal risk assessments. A DIY approach grants greater control over the network, as additional features can be implemented to meet more specific needs.
However, building a network from scratch can be a time-consuming venture, and businesses must be readily equipped from the start with the resources to construct a DIY solution. There’s also the added pressure of constantly maintaining the network from security breaches, while also dealing with costly upfront investment in the solution and only seeing the cost-effectiveness of SD-WAN in the long term. Businesses need to understand just how time-consuming and costly such a venture can be. Thankfully, managed solutions are there as an attractive alternative.
When it comes to a managed SD-WAN solution, organisations can rely on the expertise of third-party professionals, especially if their IT departments are much smaller and constrained by tighter budgets. Maintenance and support are both handled by the MSP, freeing up internal resources to focus on other core parts of the business. There aren’t any costly initial investments in the hardware required to build an SD-WAN solution, and these third-party solutions are all designed to meet industry regulations which, in the long term, can be easily scaled to fit with any future growth.
But routing for MSP means businesses surrender the ability to customise and control the SD-WAN solution, which can make this kind of solution inadequate for an organisations’ specific needs. This inflexibility means SD-WAN can’t live up to its full potential, with the added concern that a third-party are responsible for safeguarding critical pieces of data and, in case of any issues, being reactive to resolving them quickly.
We’ve said it once and we’ll say it again – it all comes down to planning! Businesses must consider what matters the most to them, such as retaining control over the network or how much budget can be shared on the infrastructure itself. Once all the benefits and disadvantages are weighed up accordingly, the expertise and support a managed service provider can bring gives it an edge over the DIY route.
Takeaway 5: How SD-WAN saves you money
When asked about their 5 main priorities for the next 18 months, 44% of C-Suite executives answered that both digital transformation and reducing costs were at the top of their lists. With 88% of CEOs struggling to realise ROI from technology, it’s more important than ever to adopt technologies that satisfy these goals and generate long-term profitability during a time of economic uncertainty.
SD-WAN’s cost-effectiveness can be seen by how all available network connections can be successfully utilised if one connection is more congested than the others. Data can be transferred over cheaper public lines, while MPLS requires a specific connection to run, which can be costly to maintain. Reducing MPLS reliance certainly works towards cutting costs in the long term, with centralised management streamlining operations and reducing overheads.
Initial investment in an SD-WAN solution depends on a variety of factors, such as how large the network will be, plans for future growth, and how dispersed the workforce is. While upfront costs may seem steep in some cases, with ongoing maintenance fees to consider as well, it’s all about focusing on the long-term savings and ROI. Savings are influenced by details like the network architecture itself and overall usage, but optimising connectivity resources and utilising integrated security features all helps towards a more cost-efficient network.
SD-WAN: the ‘cloud silver bullet’?
By 2026, the SD-WAN market will grow to nearly $7.2 billion by 2026, and is heralded as the answer to the rising demands of today’s complex multi-cloud architectures. The benefits are numerous, and MPLS may look to be heading towards the footnotes of network history, yet there is no ‘one-size-fits-all’ SD-WAN solution out there. Every business has different needs and goals, dealing with their own challenges and doing whatever they can to succeed in their own respective industry.
SD-WAN may not technically be the ‘silver bullet’, but that doesn’t stop anyone from acknowledging its potential to influence the future of managed networks. By turning to a managed service provider like Gamma, businesses can work alongside a trusted partner that delivers a network solution that’s robust, efficient, and monitored proactively.
The ’Great Enterprise Network Debate’ may be one that’s ongoing, but there’s one thing for sure – SD-WAN isn’t going away anytime soon.