If you run a business with multiple sites, the way your locations connect to each other and to the cloud is critical. Two main technologies dominate this space: MPLS vs SD-WAN.
But what do these terms actually mean, and which one is right for your business? Let’s break it down in plain English.
What is MPLS?
MPLS, or Multiprotocol Label Switching, has been around for decades. Think of it as paying for your own private motorway between your sites. No traffic jams, no unexpected delays—fast and reliable every time.
This is why many banks, healthcare companies, and manufacturers have relied on MPLS for years. It guarantees performance for critical systems like payment processing or real-time video calls.
The downside? Private motorways aren’t cheap. They cost more to build, maintain, and extend as your business grows.
What is SD-WAN?
SD-WAN, or Software-Defined Wide Area Network, takes a different approach. Instead of paying for private motorways, it uses existing public roads—the internet—but adds smart technology to guide your traffic the quickest, most efficient way possible.
If one road slows down, SD-WAN automatically reroutes traffic in real time. It’s like having a sat-nav that always finds the best route for every type of traffic: video calls, cloud apps, or emails.
It’s cheaper, more flexible, and faster to set up than MPLS—but it depends on the quality of your internet connection.
Which is Right for Your Business?
Here’s a simple way to look at it:
| Business Type | MPLS May Suit You If… | SD-WAN May Suit You If… |
|---|---|---|
| Large, single-site or regulated industries | You need guaranteed reliability and can pay a premium for it | You have multiple sites, remote workers, or heavy use of cloud applications |
| Businesses needing rapid growth or cost control | Adding sites is rare | Adding sites quickly and cheaply is essential |
Many businesses today use a hybrid approach—keeping MPLS for the most critical systems but using SD-WAN for everything else.
Costs: MPLS vs SD-WAN
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MPLS: Like any private motorway, you pay a premium. Costs are higher per site, and adding a new site can take weeks and involve complex contracts.
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SD-WAN: Can cut network costs by up to 50% by using cheaper internet connections and less specialist equipment. New sites can often be added in days, not weeks.
For directors, the key metric isn’t just cost per month but total cost of ownership: installation, running costs, flexibility, and future scalability.
Limitations of Each
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MPLS:
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High cost per site
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Slow to scale as you expand
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Not designed for today’s cloud-heavy world
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SD-WAN:
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Performance depends on your internet quality
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Needs strong security measures built in
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Migration from MPLS can take careful planning
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Why Companies are Moving to SD-WAN
The world has changed. Cloud services, hybrid working, and cost pressures mean businesses need flexibility. SD-WAN provides:
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Lower Costs – Using existing internet links slashes costs dramatically.
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Faster Setup – New sites go live quickly without waiting for telecoms providers.
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Better Cloud Performance – Direct access to cloud apps, no need to backhaul traffic through head office.
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Central Control – One dashboard for the whole network, with easy performance monitoring.
In short, SD-WAN turns your network from a fixed cost burden into an agile business tool.
Final Thoughts for Directors
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MPLS still has its place where reliability and strict performance are non-negotiable.
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SD-WAN is the future for most multi-site businesses—cheaper, faster, more flexible.
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A hybrid approach often delivers the best of both worlds during the transition phase.
If you're still not sure - entrustIT can help you decide. Get in touch at enquiries@entrustit.co.uk