By Jim Gurol, CEO, California Telecom
If you run a multi-location business, you have probably had this conversation at least once in the last two years: should we keep MPLS, move to SD-WAN, or do some mix of both? It is a fair question, and the answer is not as simple as most vendors make it sound.
Here is a straightforward breakdown of both technologies, when each one makes sense, and what questions you should be asking before you commit.
What Is MPLS and Why Did Everyone Use It?
MPLS (Multi-Protocol Label Switching) is a private network technology that creates dedicated paths between your locations through a carrier's backbone. For years, it was the gold standard for multi-site connectivity because it offered guaranteed bandwidth, low latency, and predictable performance.
The tradeoff was always cost. MPLS circuits are expensive because you are paying for dedicated capacity on the carrier's private network. A 100 Mbps MPLS circuit can easily cost five to ten times what a comparable broadband or DIA circuit costs. For businesses with dozens of locations, the monthly spend adds up fast.
MPLS also has a deployment problem. Provisioning a new circuit can take 60 to 90 days in many markets, which makes it painful for businesses that are opening new sites or expanding quickly.
What Is SD-WAN and Why Is Everyone Talking About It?
SD-WAN (Software-Defined Wide Area Network) is an overlay technology that sits on top of whatever circuits you have, whether that is broadband, dedicated fiber, LTE, or even MPLS. It uses software to intelligently route traffic based on application requirements and real-time circuit performance.
The economics are different from MPLS in two important ways. First, you can use less expensive circuits (broadband, DIA) instead of MPLS for most traffic. Second, you get built-in redundancy because SD-WAN can bond multiple circuits together and fail over automatically if one goes down.
SD-WAN also gives you application-aware routing. Your voice and video traffic can be prioritized over file downloads. Your ERP traffic can be steered to your best-performing circuit. This level of intelligence was simply not possible with traditional WAN architectures.
When MPLS Still Makes Sense
MPLS is not dead. There are legitimate use cases where it remains the right choice:
- Ultra-low-latency requirements. If you are running real-time trading systems or industrial control applications where every millisecond matters, the guaranteed latency of MPLS is hard to beat.
- Legacy application dependencies. Some older applications were designed around MPLS network characteristics and do not perform well over internet-based circuits without significant tuning.
- Regulatory requirements. Certain industries have compliance frameworks that specifically call for private WAN connectivity, though this is becoming less common as SD-WAN encryption standards have matured.
For most businesses, though, these scenarios are the exception rather than the rule.
When SD-WAN Is the Clear Winner
SD-WAN is the better fit for the majority of multi-location businesses, especially if:
- You are cloud-first. If your team runs on Microsoft 365, Google Workspace, Salesforce, or other SaaS platforms, SD-WAN gives you direct cloud breakout at each site instead of backhauling everything through a central data center. That alone can transform application performance.
- Cost matters. Replacing MPLS with a combination of broadband and DIA circuits under an SD-WAN overlay can reduce your WAN spend by 30 to 50 percent while actually improving performance and redundancy.
- You need circuit diversity. SD-WAN lets you mix fiber, broadband, LTE, and fixed wireless at each site. If one circuit fails, traffic shifts to another automatically. With MPLS, a circuit failure at a site typically means that site is down.
- You are growing. New SD-WAN sites can be deployed in days, not months. Ship a preconfigured appliance, plug it in, and the site joins the overlay network. Compare that to a 90-day MPLS provisioning cycle.
The Hybrid Approach
Many of the networks we manage use a hybrid model. The headquarters or data center keeps an MPLS circuit for specific legacy applications, while branch locations run on SD-WAN with broadband and DIA circuits. The SD-WAN overlay ties everything together so the experience is seamless regardless of the underlying transport.
This approach gives you the performance guarantees of MPLS where you actually need them without paying for expensive private circuits at every branch location. It is the practical middle ground that most multi-location businesses land on.
What to Ask Before Making the Switch
Before you commit to any WAN architecture change, ask these questions:
About Your Current Environment
- How many MPLS circuits do you have and what are you paying per site?
- What applications are running over the WAN and which ones are latency-sensitive?
- What does your failover look like today when a circuit goes down?
About Your Provider
- What SD-WAN platforms do they support? (Vendor lock-in is real.)
- Do they have certified engineers who can design and manage the overlay, or are they just reselling a box?
- Will they manage the circuits underneath the SD-WAN, or only the overlay?
- Do they provide 24/7 monitoring with real-time visibility into WAN performance across all sites?
About the Migration
- What is the cutover plan for each site?
- How long will the migration take across all locations?
- What happens during the transition period? Will you have dual connectivity?
How California Telecom Approaches SD-WAN
At California Telecom, we deploy both Versa and Fortinet SD-WAN platforms. Our engineers are certified on both, which means we recommend the platform that fits your environment rather than pushing whatever we have a preferred vendor agreement with.
We also manage the circuits underneath the SD-WAN. That is an important distinction. Many SD-WAN providers only manage the overlay and leave you to deal with carrier issues on your own. We handle the full stack: circuit procurement, SD-WAN design and deployment, firewall integration, and ongoing monitoring through Netverge.
Not Sure Which Is Right for Your Network?
Every network is different, and the right WAN architecture depends on your applications, your locations, your growth plans, and your budget. We will assess your current setup, map out your options, and give you a clear recommendation with no obligation.