SD-WAN Explained: Why Multi-Location Businesses Are Ditching MPLS (And Should You?)

If you operate multiple office locations, branch sites, or retail stores, you've probably been told your network is "outdated" and you need to upgrade to SD-WAN. But when you ask what SD-WAN actually is and why you need it, you get a lot of technical jargon about "software-defined overlays" and "dynamic path selection."

Here's the plain-English explanation: SD-WAN makes managing your network across multiple locations dramatically simpler and cheaper while improving performance. For many businesses, it cuts networking costs by 30-50% while actually improving reliability.

Let me explain how, and whether it makes sense for your business.

What Problem Does SD-WAN Solve?

The old way (MPLS): If you have 5 locations, you probably connected them using MPLS—dedicated private circuits that route all traffic through your main office. This made sense 10 years ago when everything you needed was in your data center.

Problems with traditional MPLS:

• Expensive: $500-2,000+ per location per month

• Slow to deploy: New locations take 60-90 days to connect

• Inefficient routing: Your branch office traffic goes to headquarters, then out to the internet, then to Office 365—even though Office 365 is in the cloud

• Limited bandwidth: You're stuck with whatever you purchased (upgrading is slow and costly)

• Single point of failure: If your MPLS circuit goes down, that location goes dark

The new reality: Most of your applications moved to the cloud (Microsoft 365, Salesforce, Zoom, your accounting software). Routing all that traffic through your headquarters makes no sense anymore.

What is SD-WAN?

Software-Defined Wide Area Network means your network is controlled by software instead of hardware routers. This lets you:

• Use multiple internet connections: Combine cable internet, fiber, 4G/5G wireless—whatever's available and cost-effective

• Route traffic intelligently: Send Office 365 traffic directly to Microsoft's cloud, send internal file access through your private connection, send web browsing through the cheapest path

• Automatically failover: If one connection fails, traffic instantly switches to another

• Manage everything centrally: Configure all locations from one dashboard instead of touching each router

• Deploy rapidly: New locations can be online in days, not months

Real-world example: A retail chain with 40 locations was paying $48,000/month for MPLS. They switched to SD-WAN using cable internet ($200/month per location) plus business fiber backups ($400/month). New total: $24,000/month—a 50% reduction with better performance and redundancy.

Who Should Consider SD-WAN?

You're a strong candidate if you have:

• 3+ locations that need to communicate

• Cloud applications (Office 365, Salesforce, cloud ERP, etc.)

• Current MPLS costs over $500/month per location

• Growing locations that need fast network deployment

• Reliability concerns (can't afford downtime)

• Bandwidth constraints (MPLS isn't keeping up with demand)

Specific business types that benefit:

• Retail chains: POS systems, inventory management, guest WiFi

• Healthcare: Multiple clinics sharing EHR systems

• Professional services: Law firms, accounting firms with branch offices

• Manufacturing: Connecting factories, warehouses, and headquarters

• Hospitality: Hotels, restaurants with central management

SD-WAN vs. MPLS: The Honest Comparison

Cost

MPLS: $500-2,000/month per location for dedicated circuits SD-WAN: $200-600/month per location using broadband + SD-WAN service

Winner: SD-WAN saves 40-60% on average

Deployment Speed

MPLS: 60-90 days to provision new locations SD-WAN: 5-10 days (device ships overnight, internet installed within days)

Winner: SD-WAN

Performance for Cloud Apps

MPLS: Traffic backhauled through headquarters, adding latency SD-WAN: Direct internet breakout to cloud applications

Winner: SD-WAN for cloud-first organizations

Security

MPLS: Private network, inherently more secure SD-WAN: Requires encryption and security features

Winner: Depends—modern SD-WAN has strong security, but requires proper implementation

Reliability

MPLS: Single circuit (though you can buy expensive backup) SD-WAN: Built-in multi-path redundancy

Winner: SD-WAN when implemented with redundant connections

Leading SD-WAN Providers

Cisco Meraki

• Best for: Organizations already using Cisco

• Strengths: Easy cloud management, strong security

• Pricing: $150-400/month per location (equipment + licensing)

VMware VeloCloud (now part of Broadcom)

• Best for: Complex multi-location deployments

• Strengths: Advanced traffic optimization, strong enterprise features

• Pricing: $200-500/month per location

Fortinet FortiGate SD-WAN

• Best for: Organizations prioritizing security

• Strengths: Integrated firewall and security

• Pricing: $250-600/month per location

Palo Alto Prisma SD-WAN

• Best for: Security-conscious enterprises

• Strengths: Best-in-class security features

• Pricing: $300-700/month per location

Silver Peak (HPE Aruba)

• Best for: Optimizing existing MPLS investments

• Strengths: WAN optimization, can work alongside MPLS

• Pricing: $200-450/month per location

Managed SD-WAN providers (easier for businesses without IT teams):

• Granite Telecommunications

• Masergy

• AT&T

• Verizon

Implementation Considerations

1. Internet Quality Matters

SD-WAN is only as good as your internet connections. Don't try to run SD-WAN over unreliable $50/month residential cable internet.

Minimum recommendation:

• Primary: Business fiber or cable (100+ Mbps)

• Secondary: Different provider for redundancy (cable if primary is fiber, or vice versa)

• Backup: 4G/5G wireless for emergency failover

2. Security is Critical

Since you're using the internet instead of private MPLS, you need:

• Encryption between sites

• Next-generation firewall capabilities

• Application-aware security policies

• Secure web gateway (filtering/protection)

Most modern SD-WAN solutions include these, but verify.

3. QoS (Quality of Service) Configuration

Not all traffic is equal. Your VoIP calls and video meetings need priority over file downloads.

Proper SD-WAN implementation requires:

• Identifying critical applications

• Setting appropriate priority levels

• Testing under load

• Ongoing monitoring and adjustment

4. Gradual Migration Often Makes Sense

You don't have to rip out MPLS overnight. Many organizations:

• Pilot SD-WAN at 2-3 locations

• Run hybrid (MPLS + SD-WAN) for 6-12 months

• Gradually migrate as MPLS contracts expire

• Keep MPLS for most critical locations until confident in SD-WAN

Common Mistakes to Avoid

Mistake #1: Choosing SD-WAN based on price alone The cheapest solution often lacks critical features or requires expensive add-ons.

Mistake #2: Underestimating internet circuit quality needs "We'll just use whatever Comcast offers" often leads to disappointment.

Mistake #3: Not planning for security SD-WAN without proper security is a massive vulnerability.

Mistake #4: DIY implementation without expertise SD-WAN is complex. Partner with someone who's done dozens of implementations.

Mistake #5: Canceling MPLS too early Keep backup connectivity during transition. Murphy's Law applies.

Should You Make the Switch?

Strong YES if:

• You have 5+ locations

• Current MPLS costs exceed $3,000/month total

• You're opening new locations regularly

• You've migrated most applications to the cloud

• You need better redundancy

Maybe/Not Yet if:

• You only have 2-3 locations

• MPLS costs are minimal

• You have ultra-strict compliance requiring private networks

• Your applications are primarily on-premise

• Your internet options are very limited (rural areas)

Definitely explore if:

• Your MPLS contracts are expiring in the next 6-12 months

• You're experiencing bandwidth constraints

• You're frustrated with slow deployment times for new sites

Total Cost Analysis: Example Scenarios

Small Multi-Location Business (5 locations)

Current MPLS: $3,500/month ($700/location average) SD-WAN alternative: $1,500/month ($300/location) Annual savings: $24,000 Break-even: 3-4 months after implementation

Mid-Sized Retail Chain (25 locations)

Current MPLS: $15,000/month SD-WAN alternative: $7,500/month Annual savings: $90,000 Break-even: 4-6 months

Healthcare Network (10 clinics)

Current MPLS: $8,000/month SD-WAN alternative: $4,500/month (higher quality circuits for reliability) Annual savings: $42,000

Getting Started

Step 1: Audit your current network

• What are you paying per location?

• What bandwidth are you getting?

• What applications drive most traffic?

• When do contracts expire?

Step 2: Assess internet availability Get quotes for business internet at each location from 2+ providers.

Step 3: Define requirements

• What applications are business-critical?

• What security compliance do you need?

• What's acceptable downtime?

Step 4: Get vendor-neutral guidance This is where we come in. We help you:

• Evaluate SD-WAN providers objectively

• Design the right solution for your needs

• Get competitive quotes

• Manage implementation

• Verify everything works before canceling MPLS

The Bottom Line

SD-WAN isn't hype—it's a fundamental shift in how multi-location businesses should think about networking. For most organizations with 3+ locations and cloud applications, it's a question of when, not if.

The technology has matured, the cost savings are real, and the performance benefits are measurable. But implementation matters enormously—done right, you'll wonder why you waited so long. Done poorly, you'll regret the decision.

Ready to explore SD-WAN for your organization?

Schedule a free network assessment with Sigma Technology Consulting. We'll:

• Review your current network costs and performance

• Assess internet availability at your locations

• Show you what SD-WAN could cost and deliver

• Provide honest guidance (if MPLS still makes sense, we'll tell you)

No sales pressure. No vendor bias. Just practical advice from experts who've implemented hundreds of SD-WAN deployments.